The document summarizes and discusses several studies related to human behavior and decision making:
1. A study found that people go to great lengths to justify indulgent decisions like eating chocolate, providing many reasons to give themselves "permission" to indulge rather than seeing it as an impulse.
2. Nostalgia can increase spending by making people feel more socially connected and less needing of money.
3. Happiness fuels success more than the other way around, as positive emotions lead to cognitive advantages that increase productivity, intelligence and problem solving.
4. Materialism is negatively correlated with well-being, impacting health, relationships and self-esteem, though some careers and cultures mitigate this effect.
Behavioral economics : what it is and how it could help us do our job betterDigitasLBi Paris
From forms to porn banners, how behavioral economics can optimize user experience?
by DigitasLBi strategic planning
Des formulaires aux bannières porno: comment l'économie comportementale peut optimiser l'exp. utilisateur - par les planneurs de DigitasLBi
If money doesn't make you happy, then you probably aren't spending it rightbarrettso
The relationship between money and happiness is surprisingly weak, which may stem in part from the way people spend it. Drawing on empirical research, we propose eight principles designed to help consumers get more happiness for their money. Specifically, we suggest that consumers should buy more experiences and fewer material goods; use their money to benefit others rather than themselves; buy many small pleasures rather than fewer large ones; eschew extended warranties and other forms of overpriced insurance; delay consumption; consider how peripheral features of their purchases may affect their day-to-day lives; beware of comparison shopping; and pay close attention to the happiness of others.
The Economics of Patience: The endogenous determination of time preferenceRussell James
This presentation reviews an economic model by Nobel Prize winning economist Gary Becker and Casey Mulligan incorporating the idea of imagination in time preference.
Ask 100 people what would make them happy, and a sizeable majority would say “winning the lottery.” Yet, if they won a vast fortune, within a year they would be back to their previous level of happiness. The fact is that money has many uses, but more money does not mean more happiness. Surveys carried out in recent years by leading psychologists and sociologists all confirm that while individuals may increase their material wealth during the course of their lifetime, this has no bearing on their well-being.
Behavioral economics : what it is and how it could help us do our job betterDigitasLBi Paris
From forms to porn banners, how behavioral economics can optimize user experience?
by DigitasLBi strategic planning
Des formulaires aux bannières porno: comment l'économie comportementale peut optimiser l'exp. utilisateur - par les planneurs de DigitasLBi
If money doesn't make you happy, then you probably aren't spending it rightbarrettso
The relationship between money and happiness is surprisingly weak, which may stem in part from the way people spend it. Drawing on empirical research, we propose eight principles designed to help consumers get more happiness for their money. Specifically, we suggest that consumers should buy more experiences and fewer material goods; use their money to benefit others rather than themselves; buy many small pleasures rather than fewer large ones; eschew extended warranties and other forms of overpriced insurance; delay consumption; consider how peripheral features of their purchases may affect their day-to-day lives; beware of comparison shopping; and pay close attention to the happiness of others.
The Economics of Patience: The endogenous determination of time preferenceRussell James
This presentation reviews an economic model by Nobel Prize winning economist Gary Becker and Casey Mulligan incorporating the idea of imagination in time preference.
Ask 100 people what would make them happy, and a sizeable majority would say “winning the lottery.” Yet, if they won a vast fortune, within a year they would be back to their previous level of happiness. The fact is that money has many uses, but more money does not mean more happiness. Surveys carried out in recent years by leading psychologists and sociologists all confirm that while individuals may increase their material wealth during the course of their lifetime, this has no bearing on their well-being.
SCA Research’s third Mood Monitor Report has revealed Australians are happier than they were at the same time last year. However, it seems the Federal Budget as put a bit of a dampener on how we have been feeling recently – being increasingly worried about healthcare, affordability of energy and education.
T. Rowe Price: Understanding Investor Attitudes Toward RetirementT. Rowe Price
A new T. Rowe Price study revealed that nearly half (47%) of baby boomers and Gen Xers believe their ideal retirement is very attainable and another 45% believe it is somewhat attainable. The study included a national sample of 2,000 individuals age 36 or older who are either retired or who have taken initial steps to prepare for retirement.
Scholarship Essay Samples Financial Need.pdfScholarship Essay Samples Financi...Maria Clark
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Why People Chase Money and Forget Everything Else?SabaGhazan2
In this thought-provoking Slideshare presentation, we delve into the intriguing question of why people often find themselves chasing after money at the expense of everything else in life. We explore the psychological and societal factors that drive this behavior and uncover the potential consequences it may have on personal relationships, well-being, and overall life satisfaction. Join us as we examine the motivations behind our pursuit of wealth and explore strategies for finding a more balanced and fulfilling approach to life.
Australians are the happiest they’ve been in 2 years with 47% of Australians feeling positive.
This report tracks the mood of Australians and discovers how Aussies are feeling right now, what influences their mood and what’s currently worrying them.
The three KEY INSIGHTS from this report are:
- Availability and affordability of energy, unemployment, quality and availability of education and healthcare are the issues closest to Australians.
- Family matters the most to Australians, being the key reason they feel happy
- In the latest 12 months, worry about crime and violence has increased in Australians.
For more information contact the scaresearchdepartment@sca.com.au
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Money Doesn’t Buy Happiness. Well, on Second Thought . . .If mon.docxmoirarandell
Money Doesn’t Buy Happiness. Well, on Second Thought . . .
If money can’t buy you love, can it still buy you happiness? A now famous 1974 study seemed to indicate that the answer was no. U.S. economist Richard Easterling, then at the University of Pennsylvania, studied comparative data on moderately wealthy and very wealthy countries and concluded that although rich people are happier than poorer people, rich countries are not happier than poorer ones, and they do not grow happier as they grow increasingly rich. The explanation for this apparent paradox, said Easterlin, was that only relative income—your income compared to that of your peers and neighbors—matters to happiness, not absolute income. Now, however, two Wharton professors, Betsey Stevenson and Justin Wolfers, say that the Easterlin paradox, as it has came to be called, does not exist. Based on new research, they say that the truth isn’t paradoxical at all, but is in fact very simple: “1. Rich people are happier than poor people. 2. Richer countries are happier than poorer countries. 3. As countries get richer, they tend to get happier.” Pointing out that 35 years ago Easterlin had little data to work with, Stevenson and Wolfers draw their conclusions from data about more countries, including poor ones, over longer periods of time. Public opinion surveys and other studies show that life satisfaction is highest in richer countries. In the United States, for instance, 9 in 10 Gallup Survey respondents in households making more than $250,000 a year called themselves “very happy,” compared to only 4 in 10 with incomes below $30,000. “On balance,” Stevenson and Wolfers conclude, “GDP and happiness have tended to move together.” The bottom line, they say, is that absolute income matters. What do these new findings mean in practice? A pair of British economists suggest that government’s policy goals should focus less on growing GDP and more on improving measures that directly affect happiness. Easterlin would probably agree. He now concedes that people in wealthy countries do report more happiness than those in poorer countries. But he still doubts that money alone is the reason. Comparing Denmark and Zimbabwe, for instance, he says, “The Danes have social welfare policies directed toward some of the most salient concerns of families—their health, care for the aged, child care. If you ask why the Danes are happier, an alternative hypothesis is they have a set of public policies that deal more immediately with people’s fundamental concerns.” In addition, the tiny Himalayan kingdom of Bhutan has, in fact, replaced GDP with a measure it calls “gross national happiness.”
Critical Thinking Questions
1. What do you think is the role of money as a determinant of a person’s satisfaction at work and with life in general? Should organizations worry about this issue? Explain.
2. As discussed in this chapter, firms vary widely on the extent to which they emphasize money as an incentive. Do you t ...
10 Video Ideas Any Business Can Make RIGHT NOW!
You'll never draw a blank again on what kind of video to make for your business. Go beyond the basic categories and truly reimagine a brand new advanced way to brainstorm video content creation. During this masterclass you'll be challenged to think creatively and outside of the box and view your videos through lenses you may have never thought of previously. It's guaranteed that you'll leave with more than 10 video ideas, but I like to under-promise and over-deliver. Don't miss this session.
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Monthly Social Media News Update May 2024Andy Lambert
TL;DR. These are the three themes that stood out to us over the course of last month.
1️⃣ Social media is becoming increasingly significant for brand discovery. Marketers are now understanding the impact of social and budgets are shifting accordingly.
2️⃣ Instagram’s new algorithm and latest guidance will help us maintain organic growth. Instagram continues to evolve, but Reels remains the most crucial tool for growth.
3️⃣ Collaboration will help us unlock growth. Who we work with will define how fast we grow. Meta continues to evolve their Creator Marketplace and now TikTok are beginning to push ‘collabs’ more too.
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It's another new era of digital and marketers are faced with making big bets on their digital strategy. If you are looking at modernizing your tech stack to support your digital evolution, there are a few can't miss (often overlooked) areas that should be part of every conversation. We'll cover setting your vision, avoiding siloes, adding a democratized approach to data strategy, localization, creating critical governance requirements and more. Attendees will walk away with actions they can take into initiatives they are running today and consider for the future.
Most small businesses struggle to see marketing results. In this session, we will eliminate any confusion about what to do next, solving your marketing problems so your business can thrive. You’ll learn how to create a foundational marketing OS (operating system) based on neuroscience and backed by real-world results. You’ll be taught how to develop deep customer connections, and how to have your CRM dynamically segment and sell at any stage in the customer’s journey. By the end of the session, you’ll remove confusion and chaos and replace it with clarity and confidence for long-term marketing success.
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SEO as the Backbone of Digital MarketingFelipe Bazon
In this talk Felipe Bazon will share how him and his team at Hedgehog Digital share our journey of making C-Levels alike, specially CMOS realize that SEO is the backbone of digital marketing by showing how SEO can contribute to brand awareness, reputation and authority and above all how to use SEO to create more robust global marketing strategies.
5 big bets to drive growth in 2024 without one additional marketing dollar AND how to adapt to the biggest shifting eCommerce trend- AI.
1) Romance Your Customers - Retention
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5) Roll the Dice - New Business Models
Top 3 Ways to Align Sales and Marketing Teams for Rapid GrowthDemandbase
In this session, Demandbase’s Stephanie Quinn, Sr. Director of Integrated and Digital Marketing, Devin Rosenberg, Director of Sales, and Kevin Rooney, Senior Director of Sales Development will share how sales and marketing shapes their day-to-day and what key areas are needed for true alignment.
In this presentation, Danny Leibrandt explains the impact of AI on SEO and what Google has been doing about it. Learn how to take your SEO game to the next level and win over Google with his new strategy anyone can use. Get actionable steps to rank your name, your business, and your clients on Google - the right way.
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Unleash the power of UK SEO with Brand Highlighters! Our guide delves into the unique search landscape of Britain, equipping you with targeted strategies to dominate UK search engine results. Discover local SEO tactics, keyword magic for UK audiences, and mobile optimization secrets. Get your website seen by the right people and propel your brand to the top of UK searches.
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Digital Money Maker Club – von Gunnar Kessler digital.focsh890
Title One is a comprehensive examination of the impact of digital technologies on
modern society. In a world where technology continues to advance rapidly, this article delves into the nuances and complexities of the digital age, exploring Its implications across various sectors and aspects of life.
Core Web Vitals SEO Workshop - improve your performance [pdf]Peter Mead
Core Web Vitals to improve your website performance for better SEO results with CWV.
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Mastering Multi-Touchpoint Content Strategy: Navigate Fragmented User JourneysSearch Engine Journal
Digital platforms are constantly multiplying, and with that, user engagement is becoming more intricate and fragmented.
So how do you effectively navigate distributing and tailoring your content across these various touchpoints?
Watch this webinar as we dive into the evolving landscape of content strategy tailored for today's fragmented user journeys. Understanding how to deliver your content to your users is more crucial than ever, and we’ll provide actionable tips for navigating these intricate challenges.
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- What digital shelf space is and how your content strategy needs to pivot.
With Wayne Cichanski, we’ll explore innovative strategies to map out and meet the diverse needs of your audience, ensuring every piece of content resonates and connects, regardless of where or how it is consumed.
2. Oh Go On, It’s Christmas 3
Bias of the Month 4
How to be Happier in the New Year 5
We are Living in a Material World 6
Why Losing Can Be The Secret To Winning 7
Real Life Nudge 9
Upcoming Events 9
CONTENTS
3. de Witt Huberts, J., Evers, C., & de Ridder, D. (2014). Thinking before sinning: reasoning processes in hedonic consumption. Frontiers of Psychology, 5 (1268), 1-6.
At this time of year, you’re likely to be confronted with an excess of food and alcohol, which may directly challenge your goals
to live healthily. Traditionally, it has been assumed that giving in to such temptations is just a result of acting impulsively, but
new research shows that we consciously go to great lengths to justify these decisions to ourselves.
De Witt Huberts, Evers and de Ridder (2014) recruited health-conscious students to take part in their study, framed as market
research ahead of the launch of a new chocolate bar. Participants were presented with the bar and told it would be positioned
as an indulgent treat. They were then asked to give the reasons they would use to justify eating the chocolate bar, such as,
“After a day of studying hard” or, “For finishing/passing my midterms”. The more tempted participants indicated they were by
the chocolate bar, the more reasons they provided.
OH GO ON, IT’S CHRISTMAS
This is called self-licensing: we give ourselves permission to
behave badly as a reward for being good, or even for intending to
be good in the future. This effect has also been studied more
implicitly by the same authors; they found that participants who
were told they had exerted more effort than average on a task were
more likely to have an indulgent treat afterwards. Similarly, Werle,
Wansink & Payne (2014) asked two groups of participants to go for
a walk; those for whom the walk had been framed as exercise
subsequently ate more than those who viewed it as fun. This
research makes an interesting addition to a classic study that
shows exerting effort, e.g. solving difficult puzzles, reduces pre-
frontal capacity for self-control, therefore leading to a greater
preference for chocolate over fruit. Is self-control really reduced, or
is the indulgence easier to justify - or both? More research is
needed to untangle the relationship between the two.
So this Christmas, remember that you’re not just giving in to impulse; you deserve it, because it’s the festive season/you’re
having to put up with your in-laws/you’ll turn over a new leaf in 2015. Go on, treat yourself.
4. BIAS OF THE MONTH
The Nostalgia Effect
Christmas is a time where we all get together with our families and reminisce about the
past over lots of food wine and laughter. This should be music to retailers ears and not
only the food and wine retailers as recent research suggests that reminiscing about
the past can make us spend more on products.
Research just published in the Journal of Consumer Research found that when
partipcants were asked to view print ads featuring either nostalgic experiences from
the past or neutral experiences, those in the nostalgic group were significantly more
willing to purchase products from a catalogue they were given following the print ads.
According to the researchers, the reason nostalgia makes us spend more is due to a
link between nostalgia, social connectedness and our desire for money. They note that
when we look back at fond memories we do so through rose-tinted glasses and a
sense of positivity which leads to a sense of social connectedness. They also state
that nostalgia, social connectedness and money are interchangeable such that when
people have a lot of one, their need for the other lessons; once we have our fair share
of social connectedness, our need for money lessons. This can be seen in countries
with strong social support (Scandinavian countries) as they rate financial skills and
business success as being less important.
This finding can partly explain why people are so generous to charities at Christmas
and is one charities can use to prompt pro-social behaviour in their campaigns.
Lasaleta, J. D., Sedikides, C., & Vohs, K. D. (2014). Nostalgia weakens the desire for money. Journal of Consumer Research, 41, 713-729.
5. HOW TO BE HAPPIER IN THE NEW YEAR
Its nearly time that time of year when we will all be making our new years resolutions and I can bet most of you reading
this will have somewhere in their list “I want to be happier”. When contemplating how to achieve this conventional
wisdom holds that if we work harder we will be more successful, and if we are more successful then we’ll be happier. If
we can just find that great job, win that next promotion, lose those five pounds, happiness will follow. Recent discoveries
in the field of positive psychology have shown that this formula is actually backward: Happiness fuels success, not the
other way around.
Research has shown that only 10% of our long term happiness can be predicated by our external world whereas 90% of
our long term happiness is predicated by how we process the world; in a positive light or negative light.
Achor, S. (2011). The happiness advantage: The seven principles of positive psychology that fuel success and performance at work. Random House.
If people can raise their level of positivity in the present the brain
experiences a “happiness advantage”. A positive brain performs
significantly better then a negative, neutral or stressed brain and leads to
an increase in intelligence, creativity and energy. A positive brain is 31%
more productive than a negative, neutral or stressed brain and doctors in
a state of positivity are 19% faster and more accurate at correctly
diagnosing a patient than in a negative or neutral brain state. Although we
think our job success is due our intelligence research has shown that only
25% of job success is due to IQ whereas 75% is due to optimism levels,
social support and the ability to see stress a s a challenge rather than a
threat.
So when putting a plan into place of how to make yourself happier in the
new year, instead of concentrating on getting that new job or promotion
you want, start concentrating on trying to be positive in the present and
enjoy gaining that competitive edge at work.
6. WE ARE LIVING IN A MATERIAL WORLD
One thing we are constantly bombarded with at this time of year - as well as Mariah Carey and Wham! - is lamentations of
how commercialised it has all become and how we’ve forgotten the “true meaning of Christmas”, a gripe which in fact dates
back to at least the 1850s. But perhaps the self-righteous really are right about the benefits of focusing on family and friends
over the more material aspects of Christmas: a meta-analysis of all relevant studies from the last thirty years revealed a
significant negative correlation between well-being and materialism.
Dittmar, H., Bond, R., Hurst, M., & Kasser, T. (2014). The relationship between materialism and personal well-being: A meta-analysis. Journal of Personality and Social
Psychology, 107 (5), 879-924.
Dittmar, Bond, Hurst and Kasser (2014) defined materialism as the
long-term endorsement of values, goals and beliefs that focus on
acquiring money and possessions to convey status. They also
measured well-being on a number of different indices, from physical
and mental health characteristics to subjective well-being and self-
appraisals. Materialism was found to impact negatively on all of these
different aspects and across a range of different demographics,
including gender, household income and economic climate. Of these
well-being measures, somewhat unsurprisingly, compulsive shopping
had the strongest relationship with materialism. There were also
strong correlations with negative self-appraisals and activities that
put physical health at risk, such as smoking and taking drugs. It is
possible that compulsive shopping and substance use could be used
to self-medicate against low self-esteem, caused by inevitably failing
to meet unrealistic standards.
While the relationship between well-being and materialism was always found to be negative, some factors mediated this
relationship. For example, students or practitioners of business and law were less affected by having materialistic goals, perhaps
because these goals were shared by their peers and they were rewarded for pursuing them. However, there was a stronger
negative effect in cultures that emphasise the importance of pleasure-seeking and leading an exciting life, which could be due to
greater dejection when faced with the gap between reality and expectation. Maybe this year, for our own well-being, we should
eschew our materialistic ideals and return to the true meaning of Christmas. How did they celebrate in 1849 again?
7. WHY WE PERFORM BETTER WHEN WE ARE LOSING
Although most of us hate losing, sports professionals particularly hate to lose. Research has shown that in situations where
golfers are striving to avoid defeat they will perform better rather than if they are aiming to win. After studying 2,525,161 putts
from the PGA tours between 2004-2009 these researchers found that taking all things equal (e.g. distance) golfers were
significantly more likely to get a par shot in rather than a birdie. They explain this is due to a principle known as loss aversion;
humans hate losing twice as much as they like to gain something of equal value.
Pope, D. G., & Schweitzer, M. E. (2011). Is Tiger Woods loss averse? Persistent bias in the face of experience, competition, and high stakes. The American Economic
Review, 101(1), 129-157.
Although missing a par shot (getting the ball in the
allowed number of putts) or birdie shot (get the ball in
one putt less than the allowed number of putts) leaves
the golfer worse off, the researchers explain that
psychologically missing a par shot is worse than missing
a birdie. Missing a birdie still allows the player to “win”
the hole by getting a par score whereas missing the par
shot means psychologically the player “loses” the hole
(one-over par). As people hate to lose this research
suggests that players tend to up their game on par shots
to ensure they don’t lose the hole.
Most people also assume that experts and professionals
tend not to show biases in their area of specialty but this
research shows that although professionals may show
biases to a lesser degree than non professionals, they
are not exempt from them. They are only human after
all.
8. Spotted: Priming on the roads in Bangalore
We all know that when we are driving and we spot a police man we
automatically check that we are going the correct speed and following the
rules of the road which leads to a decrease in accidents. If only there were
enough police men to ensure everyone was obeying the rules of the road to
reduce traffic accidents but of course this isn’t realistic. India which has a
reputation of reckless driving and accidents decided to instead of physically
placing more police men on the road they would put cardboard cutouts of
them to prime drivers to driver slower.
REAL LIFE NUDGE OF THE MONTH
UPCOMING EVENTS
Annual International Conference on Cognitive, Social and Behavioural Sciences
Tuesday 6th - Friday 9th January, Cyprus
http://lanyrd.com/2015/the-annual-international-conference-on-cognitive-2/
Behavioural Boozeonomics with the London Behavioural Economics Network
Tuesday 13th January, 7.00-10.30pm
http://www.meetup.com/London-behavioural-comms-monthly-informal-drinks/events/210023942/
Nudgeathon
Saturday 31st January - Sunday 1st February, Warwick Business School
http://www.wbs.ac.uk/events/view/4597