5. #NetGain8 @LoveStats
Adam Smith, 1723-1790
• First acknowledged
behavioral economics
• Human psychology is
imperfect and could
have an impact on
economic decisions
1700’s
6. #NetGain8 @LoveStats
Irving Fisher, 1867-1947
• “Human" factor in
economic decision-
making was a potential
explanation for the
stock market crash of
1929 and the great
depression
1930’s
7. #NetGain8 @LoveStats
Herbert Simon, 1916-2001
• Coined "bounded
rationality“ in 1955
• Humans don't possess
infinite decision-
making capabilities
• Nobel Prize in 1978
1955
9. #NetGain8 @LoveStats
David Laibson
• First conference at
University of Chicago in
1986
• First official behavioral
economics professor in
1994
• Quarterly Journal of
Economics devoted an
entire issue in 1999
1990’s
13. #NetGain8 @LoveStats
Solomon Asch, 1951
• Asch Conformity Experiments
–People asked to estimate the length of
a line chose the same answer as other
people who were obviously wrong
15. #NetGain8 @LoveStats
Jenness, 1932
• People asked to
estimate the number
of beans in a jar
almost always
adjusted their count
close to those of
other people
18. #NetGain8 @LoveStats
Milgram Obedience, 1963
• Stanley Milgram, Yale University
• People will obey an authority figure who
instructs them to perform acts that
conflict with their conscience
21. #NetGain8 @LoveStats
Cognitive Dissonance, 1959
• Festinger and Carlsmith, Stanford
University
• People who received $1 for a boring
task rated it more positively than those
in the $20 and control groups.
22. #NetGain8 @LoveStats
Jack Brehm, 1956
• Students rated
desirability of household
items.
• Students chose choose
between two equally
desirable items
• When asked to rate all
items again, everyone
increased the ratings of
the items they had
chosen and downgraded
the ratings of their
second-choice items.
=
>
23. #NetGain8 @LoveStats
Halo Effect, 1920
• Edward Thorndike
• Our overall
impression can be
based on one trait
• High correlation of
physical, intellect,
leadership skills,
and personal
qualities of soldiers.
26. #NetGain8 @LoveStats
Don’t Expect the Truth
• It costs a lot so it must be good
• Everyone else likes it so it must be good.
• I’m sure I like it. The package is really nice.
• I NEED it now. I can’t wait for a sale.
• This Christmas music has no effect on
my purchases.
• Knowing Justin Bieber likes this has
no effect on my purchases.
• Advertising doesn’t affect me.
27. #NetGain8 @LoveStats
Impact on Market Research
• Stop asking for opinions:
– Would you pay…
– Why do you like…
– Why do you buy…
– Why would you switch…
– How much would you pay…
– Do you care if your best friends buys…
– Will you wait for the sale or buy it now…
– Do you care if the package is red or blue…
– Would you buy products made by children…
– Would you pay more for products made by Canadians…
28. #NetGain8 @LoveStats
Impact on Market Research
• Start asking for behaviours:
– Did you buy…
– Have you paid…
– What did you pay…
– When did you pay…
– Did your friend buy…
– Where did you pay…
– What did you buy on sale…
– What coupons did you use…
– What did you buy at full price…
– Did you buy products made by…
31. #NetGain8 @LoveStats
How To Contact
Us
Annie Pettit
Chief Research Officer
Peanut Labs
annie@peanutlabs.com
twitter.com/LoveStats
ca.linkedin.com/in/anniepettit/
Questions about our Sample Services?
Jonathan Cheriff
Director of Sales & Marketing
jonathan.cheriff@peanutlabs.com
twitter.com/paperbackdad
www.linkedin.com/in/jonathancheriff
Editor's Notes
Tell me how you guess the number
At conferences, you sit there and review the numbers that other people wrote down before adjusting your number and writing it down