Interaction designers craft experiences by curating the flow of information within contexts that aim to focus attention & interest. Subtle psychological details can dramatically transform an experience. The current excitement about "gamification" has begun to draw on the powerful ways that packaging can convert a mundane task into an engaging challenge. Experimental results from behavioral economics spotlight opportunities for improving the dynamics of an interaction: The presentation frame can harness intrinsically motivating cues, enabling people to develop behavioral patterns that harmonize with their deepest aspirations.
Behavioural economics is the talk of the research town and whilst the desire exists to apply the principles, many a puzzled client has asked just how we incorporate it within insight projects.
This is a short paper written by Jan Worsley, Reserach Director at SPA Future Thinking, applying behavioural economics to research.
For more information contact Jan on +44(0)1865 336 400 or jan.worsley@spafuturethinking.com
How to convince your boss to use insights and strategies from Behavioral Econ...beworks
Behavioral Economics has revolutionized our understanding of decision making.
We now know that humans are far from perfectly rational. Instead, there are psychological biases that strongly influence people’s choices.
The result is a more accurate prediction of human behavior, which can facilitate desirable business outcomes.
Once you understand the drivers of behavior, you can change behavior.
Post-Conference presentation at the Predictive Modeling Summit held in Washington DC.
This talk focuses on applying behavioral economic principles to devise behavioral interventions and simulating such behavioral interventions using predictive modeling and agent-based simulation tools to provide managed care professionals and healthcare policy makers with a unique set of tools and techniques to address some of the critical issues of user adoption and controlling healthcare costs. In this talk, I examine the basic principles of behavioral economics, how it can be applied to devise behavioral interventions in the managed care area, and how to develop simulation models to understand the implications before testing and rolling out these interventions.
Behavioral economics overview presentation at TGASKurt Nelson, PhD
The following was the presentation that I gave at the TGAS conference in Texas this spring. Highlighting some of the behavioral science principles that can be used to help improve your incentives and sales operations.
Game Theory & Emotional Measurement by Alex Batchelor of BrainJuicer - Presen...InsightInnovation
Human beings use two systems to make their decisions. The fast, intuitive, emotional, system 1 is more powerful, and used more often, than the slower, more cognitively stressful, system 2. But the apparatus of research – be it the survey or the focus group – is designed to investigate system 2, even though it is rarely engaged in making actual consumer decisions. These are the principles of behavioural economics, and most marketers now agree that it is the key to how consumers make decisions about their brands. How do you apply the insights derived from a behavioural lens to create better business effects in your organization? Alex Batchelor, COO, shares how BrainJuicer’s Behavioural Model can be a blueprint for helping companies turn better human understanding into business advantage, especially at the shopper’s moment of truth.
Behavioural economics is the talk of the research town and whilst the desire exists to apply the principles, many a puzzled client has asked just how we incorporate it within insight projects.
This is a short paper written by Jan Worsley, Reserach Director at SPA Future Thinking, applying behavioural economics to research.
For more information contact Jan on +44(0)1865 336 400 or jan.worsley@spafuturethinking.com
How to convince your boss to use insights and strategies from Behavioral Econ...beworks
Behavioral Economics has revolutionized our understanding of decision making.
We now know that humans are far from perfectly rational. Instead, there are psychological biases that strongly influence people’s choices.
The result is a more accurate prediction of human behavior, which can facilitate desirable business outcomes.
Once you understand the drivers of behavior, you can change behavior.
Post-Conference presentation at the Predictive Modeling Summit held in Washington DC.
This talk focuses on applying behavioral economic principles to devise behavioral interventions and simulating such behavioral interventions using predictive modeling and agent-based simulation tools to provide managed care professionals and healthcare policy makers with a unique set of tools and techniques to address some of the critical issues of user adoption and controlling healthcare costs. In this talk, I examine the basic principles of behavioral economics, how it can be applied to devise behavioral interventions in the managed care area, and how to develop simulation models to understand the implications before testing and rolling out these interventions.
Behavioral economics overview presentation at TGASKurt Nelson, PhD
The following was the presentation that I gave at the TGAS conference in Texas this spring. Highlighting some of the behavioral science principles that can be used to help improve your incentives and sales operations.
Game Theory & Emotional Measurement by Alex Batchelor of BrainJuicer - Presen...InsightInnovation
Human beings use two systems to make their decisions. The fast, intuitive, emotional, system 1 is more powerful, and used more often, than the slower, more cognitively stressful, system 2. But the apparatus of research – be it the survey or the focus group – is designed to investigate system 2, even though it is rarely engaged in making actual consumer decisions. These are the principles of behavioural economics, and most marketers now agree that it is the key to how consumers make decisions about their brands. How do you apply the insights derived from a behavioural lens to create better business effects in your organization? Alex Batchelor, COO, shares how BrainJuicer’s Behavioural Model can be a blueprint for helping companies turn better human understanding into business advantage, especially at the shopper’s moment of truth.
Business Strategy and Management ModelsDavid Tracy
This document is a collection PowerPoint diagrams and templates used to convey 23 different business strategy and management models, as listed below:
3 C’s
ADL Matrix
Acquisitions Integration Approaches
Blue Ocean Strategy
Capability Maturity Model
GE-McKinsey Matrix
OODA Loop
Profit Pools
Resource-based View of Firm
Scenario Planning
Strategy Maps
Application Portfolio Optimization
Value Stream Mapping
Six Thinking Hats
4 P’s Marketing Mix
7 P’s Marketing Mix
6 Change Approaches
Cultural Dimensions Theory
Six Sigma Quality Management
Change Management Iceberg
Organizational Learning
Performance Prism
Crossing the Chasm (Product Lifecycle)
Whenever possible, multiple depictions are presented for each management model.
For brands today, the complexity of social business is steadily compounding. For every additional variable — each account, customer conversation, business unit, location, language, distributor, etc. — social media becomes a greater challenge. Meanwhile, brands struggle to prepare appropriately and adopt the right technology. This report includes four case studies that demonstrate how brands are addressing social media proliferation.
Whether you work in-house or at a design studio, it can be a struggle to get your clients to think more like designers—while at the same time encouraging your team to understand the value those clients provide to your design process. This talk is about how to craft successful (and fun) collaborative design sessions for your designers and internal clients. It was delivered by Principal Designer David Sherwin at the HOW Design Conference on Saturday, June 25th, 2011.
Advertising and media are converging. The results will disrupt how companies must deploy their marketing efforts. Marketers, and their agency partners must converge their media efforts by combining social, corporate content, and advertising reach --or risk connecting with the fleeting customer.
Owned and earned media are vital to campaigns, helping to amplify and spread brand messages through the complex paths consumers follow across devices, screens and media. Advertising, or ‘paid’ media, has traditionally led marketing initiatives both online and off-. But advertising no longer works as effectively as it once did unless bolstered by additional marketing channels.
While consumers distinguish less and less between these channels, marketers remain specialized in one medium at the expense of the others. Rather than allow campaigns to be driven by paid media, marketers must now develop scale and expertise in owned and earned media to drive effectiveness, cultivate creative ideas, assess customer needs, cultivate influencers, develop reach, achieve authenticity and cut through clutter.
”The Converged Media Imperative,” a new research report co-authored by Altimeter Group Analysts Rebecca Lieb and Jeremiah Owyang, explores today's media landscape, and provides a success checklist and actionable recommendations for converged media deployment.
Social technologies radically disrupted communications, marketing, and customer care. With these same technologies, customers are now sharing products and services with each other, bypassing existing institutions. Beyond business functions, the Collaborative Economy will impact core business models. This report defines the Collaborative Economy, looks at companies that are already moving into this space, and provides a framework, the Collaborative Economy Value Chain, which companies can use to help rethink their business models.
How does a designer fit into an organization as a leader alongside their client service, project management, and financial management peers? Or, as happens in many cases, how does a solo designer, studio owner, or in-house group determines that fine balance between the health of the studio from an operational perspective and nurturing a strong creative vision that guides both the client work and the studio culture?
Behavioral Economics as a Lens for Interaction designPaul Sas
Interaction designers craft experiences by curating the flow of information within contexts that aim to focus attention and interest. Subtle psychological details can dramatically transform an experience. Experimental results from behavioral economics spotlight opportunities for improving the dynamics of an interaction: The presentation frame can harness intrinsically motivating cues, drive engagement, and enable people to develop behavioral patterns that harmonize with their deepest aspirations.
http://www.baychi.org/calendar/20120214/
Quantified Self projects have focused on tools and techniques. The assumption that info changes behavior is broken. Attention to psychological aspects of tracking, particularly wrt compliance, can transform the Quantified Self.
Chapter 32 Keeping Score Except for the very poor, for whom inco.docxchristinemaritza
Chapter 32 Keeping Score
Except for the very poor, for whom income coincides with survival, the main motivators of money-seeking are not necessarily economic. For the billionaire looking for the extra billion, and indeed for the participant in an experimental economics project looking for the extra dollar, money is a proxy for points on a scale of self-regard and achievement. These rewards and punishments, promises and threats, are all in our heads. We carefully keep score of them. They shape o C Th5ur preferences and motivate our actions, like the incentives provided in the social environment. As a result, we refuse to cut losses when doing so would admit failure, we are biased against actions that could lead to regret, and we draw an illusory but sharp distinction between omission and commission, not doing and doing, because the sense of responsibility is greater for one than for the other. The ultimate currency that rewards or punishes is often emotional, a form of mental self-dealing that inevitably creates conflicts of interest when the individual acts as an agent on behalf of an organization.
Mental Accounts
Richard Thaler has been fascinated for many years by analogies between the world of accounting and the mental accounts that we use to organize and run our lives, with results that are sometimes foolish and sometimes very helpful. Mental accounts come in several varieties. We hold our money in different accounts, which are sometimes physical, sometimes only mental. We have spending money, general savings, earmarked savings for our children’s education or for medical emergencies. There is a clear hierarchy in our willingness to draw on these accounts to cover current needs. We use accounts for self-control purposes, as in making a household budget, limiting the daily consumption of espressos, or increasing the time spent exercising. Often we pay for self-control, for instance simultaneously putting money in a savings account and maintaining debt on credit cards. The Econs of the rational-agent model do not resort to mental accounting: they have a comprehensive view of outcomes and are driven by external incentives. For Humans, mental accounts are a form of narrow framing; they keep things under control and manageable by a finite mind.
Mental accounts are used extensively to keep score. Recall that professional golfers putt more successfully when working to avoid a bogey than to achieve a birdie. One conclusion we can draw is that the best golfers create a separate account for each hole; they do not only maintain
a single account for their overall success. An ironic example that Thaler related in an early article remains one of the best illustrations of how mental accounting affects behavior:
Two avid sports fans plan to travel 40 miles to see a basketball game. One of them paid for his ticket; the other was on his way to purchase a ticket when he got one free from a friend. A blizzard is announced for the night of the game. Whic ...
Do you know how to use Behavioural Economics? It's a game changer. Many researchers and marketers talk about this new way of uncovering deeper, more meaningful insights – but do you actually know how to apply it?
Business Strategy and Management ModelsDavid Tracy
This document is a collection PowerPoint diagrams and templates used to convey 23 different business strategy and management models, as listed below:
3 C’s
ADL Matrix
Acquisitions Integration Approaches
Blue Ocean Strategy
Capability Maturity Model
GE-McKinsey Matrix
OODA Loop
Profit Pools
Resource-based View of Firm
Scenario Planning
Strategy Maps
Application Portfolio Optimization
Value Stream Mapping
Six Thinking Hats
4 P’s Marketing Mix
7 P’s Marketing Mix
6 Change Approaches
Cultural Dimensions Theory
Six Sigma Quality Management
Change Management Iceberg
Organizational Learning
Performance Prism
Crossing the Chasm (Product Lifecycle)
Whenever possible, multiple depictions are presented for each management model.
For brands today, the complexity of social business is steadily compounding. For every additional variable — each account, customer conversation, business unit, location, language, distributor, etc. — social media becomes a greater challenge. Meanwhile, brands struggle to prepare appropriately and adopt the right technology. This report includes four case studies that demonstrate how brands are addressing social media proliferation.
Whether you work in-house or at a design studio, it can be a struggle to get your clients to think more like designers—while at the same time encouraging your team to understand the value those clients provide to your design process. This talk is about how to craft successful (and fun) collaborative design sessions for your designers and internal clients. It was delivered by Principal Designer David Sherwin at the HOW Design Conference on Saturday, June 25th, 2011.
Advertising and media are converging. The results will disrupt how companies must deploy their marketing efforts. Marketers, and their agency partners must converge their media efforts by combining social, corporate content, and advertising reach --or risk connecting with the fleeting customer.
Owned and earned media are vital to campaigns, helping to amplify and spread brand messages through the complex paths consumers follow across devices, screens and media. Advertising, or ‘paid’ media, has traditionally led marketing initiatives both online and off-. But advertising no longer works as effectively as it once did unless bolstered by additional marketing channels.
While consumers distinguish less and less between these channels, marketers remain specialized in one medium at the expense of the others. Rather than allow campaigns to be driven by paid media, marketers must now develop scale and expertise in owned and earned media to drive effectiveness, cultivate creative ideas, assess customer needs, cultivate influencers, develop reach, achieve authenticity and cut through clutter.
”The Converged Media Imperative,” a new research report co-authored by Altimeter Group Analysts Rebecca Lieb and Jeremiah Owyang, explores today's media landscape, and provides a success checklist and actionable recommendations for converged media deployment.
Social technologies radically disrupted communications, marketing, and customer care. With these same technologies, customers are now sharing products and services with each other, bypassing existing institutions. Beyond business functions, the Collaborative Economy will impact core business models. This report defines the Collaborative Economy, looks at companies that are already moving into this space, and provides a framework, the Collaborative Economy Value Chain, which companies can use to help rethink their business models.
How does a designer fit into an organization as a leader alongside their client service, project management, and financial management peers? Or, as happens in many cases, how does a solo designer, studio owner, or in-house group determines that fine balance between the health of the studio from an operational perspective and nurturing a strong creative vision that guides both the client work and the studio culture?
Behavioral Economics as a Lens for Interaction designPaul Sas
Interaction designers craft experiences by curating the flow of information within contexts that aim to focus attention and interest. Subtle psychological details can dramatically transform an experience. Experimental results from behavioral economics spotlight opportunities for improving the dynamics of an interaction: The presentation frame can harness intrinsically motivating cues, drive engagement, and enable people to develop behavioral patterns that harmonize with their deepest aspirations.
http://www.baychi.org/calendar/20120214/
Quantified Self projects have focused on tools and techniques. The assumption that info changes behavior is broken. Attention to psychological aspects of tracking, particularly wrt compliance, can transform the Quantified Self.
Chapter 32 Keeping Score Except for the very poor, for whom inco.docxchristinemaritza
Chapter 32 Keeping Score
Except for the very poor, for whom income coincides with survival, the main motivators of money-seeking are not necessarily economic. For the billionaire looking for the extra billion, and indeed for the participant in an experimental economics project looking for the extra dollar, money is a proxy for points on a scale of self-regard and achievement. These rewards and punishments, promises and threats, are all in our heads. We carefully keep score of them. They shape o C Th5ur preferences and motivate our actions, like the incentives provided in the social environment. As a result, we refuse to cut losses when doing so would admit failure, we are biased against actions that could lead to regret, and we draw an illusory but sharp distinction between omission and commission, not doing and doing, because the sense of responsibility is greater for one than for the other. The ultimate currency that rewards or punishes is often emotional, a form of mental self-dealing that inevitably creates conflicts of interest when the individual acts as an agent on behalf of an organization.
Mental Accounts
Richard Thaler has been fascinated for many years by analogies between the world of accounting and the mental accounts that we use to organize and run our lives, with results that are sometimes foolish and sometimes very helpful. Mental accounts come in several varieties. We hold our money in different accounts, which are sometimes physical, sometimes only mental. We have spending money, general savings, earmarked savings for our children’s education or for medical emergencies. There is a clear hierarchy in our willingness to draw on these accounts to cover current needs. We use accounts for self-control purposes, as in making a household budget, limiting the daily consumption of espressos, or increasing the time spent exercising. Often we pay for self-control, for instance simultaneously putting money in a savings account and maintaining debt on credit cards. The Econs of the rational-agent model do not resort to mental accounting: they have a comprehensive view of outcomes and are driven by external incentives. For Humans, mental accounts are a form of narrow framing; they keep things under control and manageable by a finite mind.
Mental accounts are used extensively to keep score. Recall that professional golfers putt more successfully when working to avoid a bogey than to achieve a birdie. One conclusion we can draw is that the best golfers create a separate account for each hole; they do not only maintain
a single account for their overall success. An ironic example that Thaler related in an early article remains one of the best illustrations of how mental accounting affects behavior:
Two avid sports fans plan to travel 40 miles to see a basketball game. One of them paid for his ticket; the other was on his way to purchase a ticket when he got one free from a friend. A blizzard is announced for the night of the game. Whic ...
Do you know how to use Behavioural Economics? It's a game changer. Many researchers and marketers talk about this new way of uncovering deeper, more meaningful insights – but do you actually know how to apply it?
This was a presentation I did on Malcolm Gladwell's Blink 4 years ago in University. There are some points missing that were presented verbally, but it's still an interesting summary on a fantastic book.
Behaviour change is the measurable outcome of good UX design. Here's a review of a few design techniques and processes to help UX designers to create sustainable behaviour change.
ABSTRACT : Why are people willing to spend more than cash when they pay with a credit card? Why are
they saving up for retirement but also in the same time why are they accumulating credit card debt? If someone
else is paying your credit card debt, you have a perfectly reasonable justification. But there is also someone
whom are not so lucky. Why do we ignore the fact of a payment that will be out of our pocket on the statement
payment date? How does the journal in our brain work? Where can the money come from and where can the
money go?The purpose of this article, which tries to answer all these questions in terms of mental accounting, is
to examine in depth the mental accounting, which is one of the behavioral patterns of the investor in behavioral
finance
This paper examines professional investors can apply the principles within and around Behavioural Finance to maximise investment skill and minimise any negative impact of behavioural bias.
Hack the Mind: Using Psychology to Boost Your FundraisingBloomerang
https://bloomerang.co/resources/webinars/
Jarrett Way will give you a new understanding of the subtle, predictable, and (often) irrational ways donors think. And you’ll have concrete ways to apply these great “brain hacks” to your organization.
Similar to Wellness, Wealth Management, & Will Power Interaction Design through the Lens of Behavioral Economics (20)
Designing Conversational Interfaces To Feel BetterPaul Sas
Noisebridge Workshop on Behavioral Economics & Polite Robot Behavior
Conversational User Interfaces have transformed the space for interaction design. Mobile apps slimmed down websites to their core features. Software must now must accommodate the even more compact expressiveness of chatbots. Basic facts of human psychology help designers identify what can be pared away without sacrificing the core experience. Behavioral insights point the way toward fascinating opportunities for technology to make us happier.
Modified from presentation shared at BayCHI as
"Why Don't You Tickle Me? Designing Conversational Bots To Feel Better"
The Society for Judgment and Decisionmaking held their 32nd conference in Seattle Nov 4-7.
These slides point to some of my favorite findings presented there.
Slides from talk given in CS547: http://hci.stanford.edu/courses/cs547/speaker.php?date=2011-10-14
The proliferation of tracking techniques & methods today reminds me of reports of the Homebrew Computer Club, which began meeting in Menlo Park in 1975. The current state of the QSelf field seems analogous to the early stage of personal computers, before the incredible potential of the technology was liberated by progress in interface design.
Maximize Your Content with Beautiful Assets : Content & Asset for Landing Page pmgdscunsri
Figma is a cloud-based design tool widely used by designers for prototyping, UI/UX design, and real-time collaboration. With features such as precision pen tools, grid system, and reusable components, Figma makes it easy for teams to work together on design projects. Its flexibility and accessibility make Figma a top choice in the digital age.
PDF SubmissionDigital Marketing Institute in NoidaPoojaSaini954651
https://www.safalta.com/online-digital-marketing/advance-digital-marketing-training-in-noidaTop Digital Marketing Institute in Noida: Boost Your Career Fast
[3:29 am, 30/05/2024] +91 83818 43552: Safalta Digital Marketing Institute in Noida also provides advanced classes for individuals seeking to develop their expertise and skills in this field. These classes, led by industry experts with vast experience, focus on specific aspects of digital marketing such as advanced SEO strategies, sophisticated content creation techniques, and data-driven analytics.
Transforming Brand Perception and Boosting Profitabilityaaryangarg12
In today's digital era, the dynamics of brand perception, consumer behavior, and profitability have been profoundly reshaped by the synergy of branding, social media, and website design. This research paper investigates the transformative power of these elements in influencing how individuals perceive brands and products and how this transformation can be harnessed to drive sales and profitability for businesses.
Through an exploration of brand psychology and consumer behavior, this study sheds light on the intricate ways in which effective branding strategies, strategic social media engagement, and user-centric website design contribute to altering consumers' perceptions. We delve into the principles that underlie successful brand transformations, examining how visual identity, messaging, and storytelling can captivate and resonate with target audiences.
Methodologically, this research employs a comprehensive approach, combining qualitative and quantitative analyses. Real-world case studies illustrate the impact of branding, social media campaigns, and website redesigns on consumer perception, sales figures, and profitability. We assess the various metrics, including brand awareness, customer engagement, conversion rates, and revenue growth, to measure the effectiveness of these strategies.
The results underscore the pivotal role of cohesive branding, social media influence, and website usability in shaping positive brand perceptions, influencing consumer decisions, and ultimately bolstering sales and profitability. This paper provides actionable insights and strategic recommendations for businesses seeking to leverage branding, social media, and website design as potent tools to enhance their market position and financial success.
Book Formatting: Quality Control Checks for DesignersConfidence Ago
This presentation was made to help designers who work in publishing houses or format books for printing ensure quality.
Quality control is vital to every industry. This is why every department in a company need create a method they use in ensuring quality. This, perhaps, will not only improve the quality of products and bring errors to the barest minimum, but take it to a near perfect finish.
It is beyond a moot point that a good book will somewhat be judged by its cover, but the content of the book remains king. No matter how beautiful the cover, if the quality of writing or presentation is off, that will be a reason for readers not to come back to the book or recommend it.
So, this presentation points designers to some important things that may be missed by an editor that they could eventually discover and call the attention of the editor.
Connect Conference 2022: Passive House - Economic and Environmental Solution...TE Studio
Passive House: The Economic and Environmental Solution for Sustainable Real Estate. Lecture by Tim Eian of TE Studio Passive House Design in November 2022 in Minneapolis.
- The Built Environment
- Let's imagine the perfect building
- The Passive House standard
- Why Passive House targets
- Clean Energy Plans?!
- How does Passive House compare and fit in?
- The business case for Passive House real estate
- Tools to quantify the value of Passive House
- What can I do?
- Resources
Can AI do good? at 'offtheCanvas' India HCI preludeAlan Dix
Invited talk at 'offtheCanvas' IndiaHCI prelude, 29th June 2024.
https://www.alandix.com/academic/talks/offtheCanvas-IndiaHCI2024/
The world is being changed fundamentally by AI and we are constantly faced with newspaper headlines about its harmful effects. However, there is also the potential to both ameliorate theses harms and use the new abilities of AI to transform society for the good. Can you make the difference?
Wellness, Wealth Management, & Will Power Interaction Design through the Lens of Behavioral Economics
1. Wellness, Wealth Management, & Will Power
Interaction Design through the Lens of Behavioral Economics
Paul Whitmore Sas
wit@psych.stanford.edu
July 28, 2011 for ESI lunch talk
3. Behavioral economists view Designers/Product
Managers as CHOICE ARCHITECTS
Opt
ion
A
Opt
ion
B
“Many features, noticed and unnoticed, can influence
decisions. The person who creates that environment is, in our
terminology, a choice architect.” (Thaler & Sunstein)
6
4. Case Study: BofA’s Keep the Change
Subjective Valuation:
1. Psychophysics of Value
2. Mental Accounting
David Fetherstonhaugh, IDEO Behavioral Economist in Residence
5. 1. Psychophysics of Value
Diminishing Returns (Weber-Fechner Law)
Response starts big, and with each additional increment,
gives less and less bang
8
6. 1. Psychophysics of Value
Pain of Spending
Purchase of
$5.10
1st 2nd 3rd 4th 5th 6th
7. 1. Psychophysics of Value
6th
5th
4th
Pain of Spending
3rd
2nd
1st
90
¢
$1 $2 $3 $4 $5 $6
Actual Dollars Spent
8. MPC = ~1.0 MPC < 1.0 MPC = ~0
Violate economic notion of fungibility (money has no labels: money is one unitary metric).
People behave as if money in one account is not a substitute for money in any other account.
Marginal Propensity to Consume (MPC) very dependent on “account” in which it’s held
11 adapted from Prof Russell James III, Texas Tech U
9. 2. Mental Accounting
Rounds up to
90¢
Mental Spending Account Mental Savings Account
Pain of Spending
Joy of Saving
o!
Waho
90¢
saved
Actual Dollars Spent Actual Dollars Saved
10. Automating Choice
Subscription to reduce friction of decision-making
Theater tickets / Gym membership
Amazon: 2 ways – PRIME & 15% off if a purchase is
transformed from a one-off purchase to a subscription
Medical insurance –Seems irrational to choose high
premium, low deductible, yet many don’t want to make
repeated calculations about trade offs
2
11. Endowment Effect explains one way
subscriptions change framing
Mug Experiment at Cornell in 1985
Every other MBA class was given a $6 mug
Buyer reserve price $2.50 ; Seller reserve $5.25
Expected trades 11; actual number below 2.
Random distribution should not have guessed
which people preferred $ to a Cornell mug.
7
12. How do subscriptions change the framing?
How does endowment effect show up in subscription
momentum?
Once something is part of ME, letting go of it feels like a
loss, even if offered a compensatory gain
I lose part of me, and gain mere $ back.
8
13. Subscriptions can support behavioral change
Set up a policy where I am guaranteed not to have to
make a sequence of choices
Don’t Make Me Think
Create a climate of “us” where trust is supported
9
14. Understanding Preferences
Building a better Eliza (1966 computer program)
ELIZA mimicked a therapist by returning
whatever user typed with a question
> How does that make you feel?
> Tell me more about …
12
15. People are not adept at knowing what they want
Choosing for tonight Choosing for next Choosing for second
Thursday Thursday
Next week I will want things that are good for me…
adapted from Prof Russell James III, Texas Tech U
16. Asking people about their goals is tricky
When asked to
describe personal
priorities, people
provide more
articulate & explicit
goals for lower
priorities
Delmore Effect - http://www-psych.stanford.edu/~wit/PhDraft.pdf
17. Eliciting Goals that Matter
Recalling past
successes just
makes it worse
Distracting people
by asking them
to think about
irrelevant topics
doesn’t help
either
15
18. To recall a success, not connected to most
important goal, can help
1- Make it possible to accumulate info without deliberate action
2- Enable answers to “quiz” like questions to create small
successes to build greater engagement w/o triggering anxiety
16
19. How to get people to talk about themselves?
Hunch is
exemplary
at playing
“the
question
game”
17
20. Illusion of Control (Langer 1975)
Chance can be overcome by Choice
Lottery staged one week before Superbowl
Tickets were 4 x 2 inch football cards
Odds were 1:227
Asked to sell card back to someone else:
No choice: $1.96 Choice: $8.67
18
21. Elicited versus Explicit Preferences
Knowing more about a person means that
the interaction can be more nuanced.
Transition from a statistical best guess to a
dialog that enables nuance and tuning
Not just the black hats should be using this
to attune messaging over time on the web
19
22. Beware that Q&A can just be pesky
Eliza tricked people into thinking
that we are talking about me
Microsoft “Clippy” had much more
computational intelligence, but it
only directed attention to Clippy
20
23. Making it fun / addictive
Zynga games appear deliberately designed to incarnate
the absinthe/crack cocaine elements of motivation and
engagement inside FaceBook.
84.2 Million Cityville players this January outstripped
Farmville’s maximum by over 500K
21
24. Beyond Boredom and Anxiety
Csikszentmihalyi’s concept of Flow (adapted by Jenova Chen, MFA)
24
25. Paradoxes of Hedonics (the study of experience)
Experienced vs. Remembered Utility
Certain dimensions are easy to evaluate:
Most intense moment
Last moment
Other dimensions are nearly impossible to
guess:
Average height on a roller coaster ride
Average rate of winnings at a casino
26
26. Peak and End Rule (Kahneman)
Experienced vs. Remembered Utility
Our mind does not make movies; it takes
snapshots
Rather than guess the total amount of
suffering, people recall the worst instant,
and the last instant.
If you increase the amount of suffering, but
arrange for the last minutes to be less
intense, people report a longer period as
less painful
28. Achievement Orientation as Motivator
Psychophysical Curve of Response to Increase Stimulus
Diminishing Returns (Weber-Fechner Law)
Response starts big
Each additional increment gives less & less bang
22
29. Behavioral Economics can explain one way that games
hook into motivation
Move from framing where response is flat into framing where the payoff is
still increasing.
Games do this by slicing infinite horizon into smaller intervals
The reverse occurs with Subscription, and explains how friction reduces:
Move many short, sharp shocks toward one smooth flat perspective.
30. Social embeddings make habit change fun
Quantified Self collecting a range of techniques/tools/
topics
Sensors (Fitbit/Zeos/GreyGoose)
Apps (Livifi/Procrastinator)
Domains: Chronic Conditions to Optimization
Transformation requires habit
“the enormous flywheel of society” (Wm James)
Maker community building an economy of whimsy
Hacker Dojo/NoiseBridge/Ace Monster Toys
Bootcamps morph into “Summer of Riesling” with tasting
workouts
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31. Peak and End Rule for Designers
The last moment of contact makes an inordinate
difference to the recalled value of experience
Jared Spool's "Truth About Download Time"
Nielsen concluded that users will be annoyed … by pages
that take any longer than about 10 seconds to load. (Since
most popular sites take 8 secs, and less popular take an
avg of 19 secs to download)
No correlation between download times and perceived
speeds. Amazon.com, rated one of fastest, really one of the
slowest
Strong correlation between perceived download time and
whether successfully completed task on a site
32. Sources for followup
Best Review book on the subject
Priceless: The Myth of Fair Value (and How to Take
Advantage of It) Poundstone (2010)
Delmore Effect (Paul Whitmore Sas)
http://www-psych.stanford.edu/~wit/PhDraft.pdf
Daniel Kahneman
http://www.nobel.se/economics/laureates/2002/kahneman-lecture.html
Dan Ariely
http://danariely.com/the-books/
Sheena Iyengar
http://www.columbia.edu/~ss957/articles.html
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