Your SlideShare is downloading. ×
Natalie Horne - OTE London - Behavioural Economics
Natalie Horne - OTE London - Behavioural Economics
Natalie Horne - OTE London - Behavioural Economics
Natalie Horne - OTE London - Behavioural Economics
Natalie Horne - OTE London - Behavioural Economics
Natalie Horne - OTE London - Behavioural Economics
Natalie Horne - OTE London - Behavioural Economics
Natalie Horne - OTE London - Behavioural Economics
Natalie Horne - OTE London - Behavioural Economics
Natalie Horne - OTE London - Behavioural Economics
Natalie Horne - OTE London - Behavioural Economics
Natalie Horne - OTE London - Behavioural Economics
Natalie Horne - OTE London - Behavioural Economics
Natalie Horne - OTE London - Behavioural Economics
Natalie Horne - OTE London - Behavioural Economics
Natalie Horne - OTE London - Behavioural Economics
Natalie Horne - OTE London - Behavioural Economics
Natalie Horne - OTE London - Behavioural Economics
Natalie Horne - OTE London - Behavioural Economics
Natalie Horne - OTE London - Behavioural Economics
Natalie Horne - OTE London - Behavioural Economics
Natalie Horne - OTE London - Behavioural Economics
Natalie Horne - OTE London - Behavioural Economics
Natalie Horne - OTE London - Behavioural Economics
Natalie Horne - OTE London - Behavioural Economics
Natalie Horne - OTE London - Behavioural Economics
Natalie Horne - OTE London - Behavioural Economics
Natalie Horne - OTE London - Behavioural Economics
Natalie Horne - OTE London - Behavioural Economics
Natalie Horne - OTE London - Behavioural Economics
Natalie Horne - OTE London - Behavioural Economics
Natalie Horne - OTE London - Behavioural Economics
Natalie Horne - OTE London - Behavioural Economics
Natalie Horne - OTE London - Behavioural Economics
Natalie Horne - OTE London - Behavioural Economics
Natalie Horne - OTE London - Behavioural Economics
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Natalie Horne - OTE London - Behavioural Economics

428

Published on

Topic: Behavioural Economics …

Topic: Behavioural Economics

Key Takeaways:
How to hone in on human behaviour to market your product
Shaping communications to psychological decision-making tendencies
Improve ROI by becoming more effective at influencing choices to engage, act and buy

Published in: Economy & Finance, Technology
0 Comments
2 Likes
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
428
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
35
Comments
0
Likes
2
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide
  • People may judge the probabilities of future events based on how easy those events are to imagine or to retrieve from memory
  • People are generally attracted to options that dominate other options (Huber, Payne & Puto, 1982). They are also drawn disproportionately to "compromise" alternatives whose attribute values lie between those of other alternatives (Simonson & Tversky, 1992)
  • Forty-eight young adults completed a “language proficiency task” which would either activate a healthy lifestyle schema in the experimental condition or a neutral schema in the control condition. Participants in the experimental condition were more likely than the control group to use stairs, instead of elevators, to move up one floor to attend another unrelated study. 
  • Transcript

    • 1. 02/10/2013 Copyright © 2013 PrimeDecisionCopyright © 2013 PrimeDecision Behavioural Economics Natalie Horne Strategy Director, Prime Decision natalie.horne@prime-decision.com prime-decision.com | @natalie_horne
    • 2. Who is Prime Decision? Marketing strategy with a behavioural edge
    • 3. Copyright © 2012 PrimeDecisionCopyright © 2012 PrimeDecision What is Behavioural Economics?
    • 4. homo economicus
    • 5. Optimal, Normative Realistic, Descriptive
    • 6. Get ready!
    • 7. Which is the best option? a. 40% chance of winning £22.50 b. 5% chance of winning £180.00 c. 65% chance of winning £15.40 d. 25% chance of winning £36.00 e. 80% chance of winning £11.25
    • 8. a. 40% chance of winning £22.50 £9 b. 5% chance of winning £180.00 £9 c. 65% chance of winning £15.40 £10 d. 25% chance of winning £36.00 £9 e. 80% chance of winning £11.25 £9 Correct =
    • 9. Get ready!
    • 10. More wins or losses?
    • 11. More wins or losses? X 4 X 6
    • 12. What did behavioural economists discover?  We are bad at judging probabilities  We are good at judging frequencies + many other patterns
    • 13.  Primacy effect  Defaults  Endowment effect  Framing  Availability heuristic  Social norms/approval  Anchors  Priming  Commitment devices  Hyperbolic discounting Codifying human tendencies
    • 14. Availability heuristic
    • 15. Framing effects  Web subscription $59  Print plus web $125  Web subscription $59  Print only $125  Print plus web $125 52% increase 68% 32% 16% 0% 84%
    • 16. Priming
    • 17.  Primacy effect  Defaults  Endowment effect  Framing  Availability heuristic  Social norms/approval  Anchors  Priming  Commitment devices  Hyperbolic discounting Codifying human tendencies
    • 18. Copyright © 2012 PrimeDecisionCopyright © 2012 PrimeDecision Applied BE
    • 19. A creative approach to solving problems Behavioural science: Strategy Tactics
    • 20. Copyright © 2012 PrimeDecisionCopyright © 2012 PrimeDecision Prosecute criminals Raise premiums Typical approach:
    • 21. Copyright © 2012 PrimeDecisionCopyright © 2012 PrimeDecision Target behaviour: Get people to be more honest during the claim processes
    • 22. Depletion Moral reminders Format Proximity Supervision
    • 23. Experiment: Easter Bonus I recognise that I have moral obligation to complete this task honestly. 0% 1% 2% 3% 4% 5% 6% 7% 8% Control Opportunity Honesty Pledge 75% decrease in high claims 95% Decrease in maximum claims
    • 24. Potential to scale  What would an insurance process look like that was designed to promote honesty? Claims process Marketing touch-points Customer communications There is a tremendous scope to apply psychological insights to reduce fraud
    • 25. The Seven Lenses Script SocialStory Sync Sense Scenario Structure Our proprietary framework
    • 26. Story:  What do people say?  What do they not say?  How do they justify their choices? Script:  What are the habits?  How could these be strengthened/ disrupted?  Which other scripts could be mimicked/leveraged? Social:  What are others doing?  Are they aware of this?  What form does/could this awareness take? Sense:  What are the stimuli?  How/are they perceived?  How does this affect their experience/choices? Structure:  Which choices are presented?  How are they framed?  What is the rationale for the order/defaults? Scenario:  Which external or emotional/personal factors could feature?  Is there scope to modify/personalise? Sync:  What are our own biases?  Have we tested our assumptions? Have we missed alternative contexts? Questions to ask: Script SocialStory Sync Sense Scenario Structure
    • 27. Copyright © 2012 PrimeDecisionCopyright © 2012 PrimeDecision Typical approach: drive more traffic
    • 28. Copyright © 2012 PrimeDecisionCopyright © 2012 PrimeDecision Target behaviour: Get (more) people to donate (more) during the online booking process
    • 29. Script SocialStory Sync Sense Scenario Structure “Just £1”
    • 30. In summary:
    • 31. Copyright © 2012 PrimeDecisionCopyright © 2012 PrimeDecision Define target behaviours (measurable actions in specific contexts) #1
    • 32. Interrogate (hypothesise, prioritise) #2 Script SocialStory Sync Sense Scenario Structure
    • 33. Copyright © 2012 PrimeDecisionCopyright © 2012 PrimeDecision Experiment! #3
    • 34. 02/10/2013 Copyright © 2013 PrimeDecisionCopyright © 2013 PrimeDecision Get in touch Natalie Horne Strategy Director natalie.horne@prime-decision.com prime-decision.com @natalie_horne

    ×