Category: Experience

💎 On safety measures causing people to take more risks

Economists call this excessive risk-taking when you know you’ll be bailed out ‘moral hazard’. To reduce moral hazard on the road, the economist Gordon Tullock once argued that instead of mandating seat belts, the government should require large spikes to be installed in the centre of steering wheels – known as Tullock spikes. These spikes would make drivers more aware of the danger of driving too fast. The Bank of England doesn’t quite do that.

Excerpt from: Can’t We Just Print More Money?: Economics in Ten Simple Questions by Rupal Patel and Jack Meaning

💎 On how adding a little bit of effort into learning increases probability of remembering

In one study published in 2014, researchers from Princeton and UCLA examined the relationship between learning and disfluency by looking at the difference between students who took notes by hand while watching a lecture and those who used laptops. Recording a speaker’s comments via longhand is both harder and less efficient than typing on a keyboard. Fingers cramp. Writing is slower than typing, and so you can’t record as many words. Students who use laptops, in contrast, spend less time actively working during a lecture, and yet they still collect about twice as many notes as their handwriting peers. Put differently, writing is more disfluent than typing, because it requires more labor and captures fewer verbatim phrases. tale When the researchers looked at the test scores of those two groups, however, they found that the hand writers scored twice as well as the typists in remembering what a lecturer said.

Excerpt from: Smarter Faster Better: The Transformative Power of Real Productivity by Charles Duhigg

💎 On how, once we decide upon a way of thinking, we struggle to see the other side

One important study of the power of such decision-frames was published in 1984, after a researcher from Northwestern asked a group of participants to list reasons why they should buy a VCR based on their own experiences. Volunteers generated dozens of justifications for such a purchase. Some said they felt a VCR would provide entertainment. Others saw it as an investment in their education or a way for their families to spend time together. Then those same volunteers were asked to generate reasons not to buy a VCR. They struggled to come up with arguments against the expenditure. The vast majority said they were likely to buy one sometime soon.

Next, the researcher asked a new group of volunteers to come up with a list of reasons against purchasing a VCR. No problem, they replied. Some said watching television distracted them from their families. Others said that movies were mindless, and they didn’t need the temptation. When those same people were then asked to list reasons for buying a VCR, they had trouble coming up with convincing reasons to make the purchase and said they were unlikely to ever buy one.

What interested the researcher was how much each group struggled to adopt an opposing viewpoint once they had an initial frame for making a decision. The two groups were demographically similar. They should have been equally interested in buying a VCR. At to very least, they should have generated equal numbers of reasons to buy or spurn the machines. But once a participant grabbed on to a decision-making frame—This is an investment in my education verses this is a distraction from my family

Excerpt from: Smarter Faster Better: The Transformative Power of Real Productivity by Charles Duhigg

💎 On the illusion of progress being a motivating factor to continue (a diet)

One place to start is to highlight ways people already agree or are already moving on in the desired direction. One diet and exercise book cleverly leverages this idea. Rather than starting off by trying to convince people to be healthier, the author points out that this is something they already want: “Congratulations! Whether you realize it or not, simply by picking up this book you have taken the first of what I hope will be many steps, both large and small, simple and challenging, toward the most rewarding journey of all—the road to reclaiming your physical health, well-being, and happiness.” By pointing out ways people are already on board, the author encourages readers to see their position on the field as closer to the end goal. Which makes them likely to stick around for the next phase of the journey (Greene, 2002, p. 9).

Excerpt from: Catalyst by Jonah Berger

💎 On why we often, mistakenly, think the past was a golden age (we just forgot about all the shitty shit)

This argument — for example, “Why isn’t music as good as it used to be?” — reflects a historical selection bias, one colorfully described by the designer Frank Chimero. “Let me let you in on a little secret,” he writes. “If you are hearing about something old, it is almost certainly good. Why? Because nobody wants to talk about shitty old stuff, but lots of people still talk about shitty new stuff, because they are still trying to figure out if it is shitty or not. The past wasn’t better, we just forgot about all the shitty shit.”

Excerpt from, You May Also Like: Taste in an Age of Endless Choice by Tom Vanderbilt

💎 On the danger of interpreting data at face value (Alex Ferguson’s mistake selling Jaap Stam)

Another example, this time involving Manchester United manager, Sir Alex Ferguson, didn’t have such a happy ending. Opta data showed that his star defender, Jaap Stam, was making fewer tackles each season. Ferguson promptly offloaded him in August 2001 to Lazio — keen to earn a high transfer fee before the decline became apparent to rival clubs.

However, Stam’s career blossomed in Italy and Ferguson realised his error — the lower number of tackles was a sign of Stam’s improvement, not decline. He was losing the ball less and intercepting more passes that he needed to make fewer tackles. Ferguson says selling Stam was the biggest mistake of his managerial career. From then on he refused to be seduced by simplistic data.

These criticisms don’t mean you should disregard tracking data. Expecting any methodology to be perfect is to burden it with unreasonable expectations. Instead, you need to be aware that it merely provides evidence to which you need to apply your discretion and judgement.

Excerpt from: The Choice Factory: 25 behavioural biases that influence what we buy by Richard Shotton

💎 On changing the subjective experience rather than the objective reality (Houston airport baggage waiting times)

In the early 2000s, the management at Houston airport was dismayed by the number of passenger complaints it was receiving.

The main issue was delays at the baggage carousel: by this point passengers were often at the end of their tether and even trivial delays tested their patience.

In response, the airport approved a hefty budget for more baggage handlers. At first, the cash looked well spent as waiting times dropped to eight minutes, about average for an airport. But complaints remained stubbornly high.

The authorities considered hiring more baggage handlers but that was prohibitively expensive. Instead, the managers took a psychological approach: they focused on improving the subjective experience rather than the objective reality.

One fact they had discovered earlier became key: people spent about a minute walking to the carousel and eight minutes waiting. The authorities re-routed passengers after passport control so they had to walk further. This meant they spent about eight minutes walking to the carousel and just a minute waiting.

Even though the time they picked up their bags was the same, complaints plummeted. In the words of Alex Stone, who reported on the Houston redesign for the New York Times, “the experience of waiting is defined only partly by the objective length of the wait”. What matters more is perception and an unoccupied wait feels far longer than an occupied one.

Excerpt from: ‘Customer experience is as much about perception as reality’ in Marketing Week

💎 On the power of expectations to shape our experience of products (you taste what you expect to taste)

Pour a bottle of Gallo into an empty 50-year-old bottle of French Burgundy. Then carefully decant a glass in front of a friend and ask for an opinion.

You taste what you expect to taste.

Blind taste testings of champagne have often ranked inexpensive California brands above French ones. With the labels on, this is unlikely to happen.

You taste what you expect to taste.

Were it not so, there would be no role for advertising at all. Were the average consumer rational instead of emotional, there would be no advertising. At least not as we know it today.

Excerpt from: Positioning: The Battle for Your Mind by Al Ries

💎 On the Illusory Superiority Bias (we’re unduly negative when assessing others)

Second, more generally, we’re unduly negative when assessing others. That is, we suffer from an ‘illusory superiority bias’: we tend to think that we’re better than the average person when considering positive traits. Experiment after experiment has shown we rate our relationship happiness, leadership skills, IQ and popularity higher than those of our peers. Eight in ten of us deem our driving ability to be better than the average. To see how pervasive the illusory superiority bias is, we took a large, representative sample of the population in one of our surveys and asked half of the people what their chances were of being involved in a road accident, as either a road user of pedestrian, in the coming year, and asked the other half what the other’ chances were. There was a big difference. 40% in the first group picked the lowest probability option, while only 24% in the second group picked that option for others.

Excerpt from: The Perils of Perception Why We’re Wrong About Nearly Everything by Bobby Duffy

💎 On the danger of uncritically listening to claimed data (you’ll be misled)

If Rudder’s study hunted at lying, the National Survey of Sexual Attitudes and Lifestyle (NATSAL) categorically confirms it. The survey, conducted among 15,000 respondents by UCL and the London School of Hygiene and Tropical Medicine, is the gold standard of research. In 2010 it found that British heterosexual women admit to a mean of eight sexual partners, compared to twelve for men. The difference is logically impossible. If everyone is telling the truth the mean for each gender must be the same.

All of this foes to show that advertisers trying to understand their customers have a problem: if they listen uncritically to consumers, they’ll be misled.

Excerpt from: The Choice Factory: 25 behavioural biases that influence what we buy by Richard Shotton

💎 On how poorly set targets lead to unintended consequences (Dead Sea scrolls to company boards)

In 1947, when the Dead Sea scrolls were discovered, archaeologists set a finder’s fee for each new parchment. Instead of lots of extra scrolls being found, they were simply torn apart to increase the reward. Similarly, in China in the nineteenth century, an incentive was offered for finding dinosaur bones. Farmers located a few on their land, broke them into pieces and cashed in. Modern incentives are no better: company boards promise bonuses for achieved targets. And what happens? Managers invest more energy in trying to lower the targets than in growing the business.

Excerpt from: The Art of Thinking Clearly by Rolf Dobelli

💎 On how we overestimate ourselves (even when it comes to our image)

Whitchurch and Epley took photos of people and blended their facial image, in 10% increments with either an attractive or unattractive face. So the face became more or less attractive. We then showed people all 11 versions of their faces – their actual face, the 5 blended with the highly attractive face, and the five blended with the highly unattractive face—in a randomly ordered lineup and asked them to identify which face was their own. We found that people tended to select attractively enhanced images of themselves, thinking they were more attractive than they actually were.

Excerpt from: Mindwise: How We Understand What Others Think, Believe, Feel, and Want by Nicholas Epley

💎 On why we don’t have full awareness of the reasons behind our actions (an evolutionary explanation)

A fascinating theory, first proposed by the evolutionary biologist Robert Trivers and later supported by the evolutionary psychologist Robert Kurzban, explains that we do not have full access to the reasons behind our decision-making because, in evolutionary terms, we are better off not knowing; we have evolved to deceive ourselves, in order that we are better at deceiving others. Just as there are words that are best left unspoken, so there are feelings that are best left unthought. The theory is that if all our unconscious motivations were to impinge on our consciousness, subtle cues in our behaviour might reveal our true motivation, which would limit our social and reproductive prospects.

Robert Trivers gives an extraordinary example of a case where an animal having conscious access to its own actions may be damaging to its evolutionary fitness. When a hare is being chased, it zigzags in a random pattern in an attempt to shake off the pursuer. This technique will be more reliable if it is genuinely random and not conscious, as it is better for the hare to have no foreknowledge of where it is going to jump next: if it knew where it was going to jump next, its posture might reveal clues to its pursuer. Over time, dogs would learn to anticipate these cues – with fatal consequences.

Excerpt from: Alchemy: The Surprising Power of Ideas That Don’t Make Sense by Rory Sutherland

💎 On how willpower can be depleted (it’s not something that we just exercise)

So psychologist Roy Baumeister and colleagues put it to a closer test. People were invited to watch a sad movie. Half were told to react as they normally would, while the other half were instructed to suppress their emotions. After the movie, they were all given a hand exerciser and asked to squeeze it for as long as they could. Those who had suppressed their emotions gave up sooner. Why? Because self-control requires energy, which means we have less energy available for the next thing we need to do. And that’s why resisting temptation, making hard decisions, or taking initiative all seem to draw from the same well of energy. So willpower isn’t something that we just exercise — it’s something we deplete.

Excerpt from: Incognito: The Secret Lives of the Brain by David Eagleman

💎 On breaking the hedonic treadmill (appreciate the present)

You could call it the Paul Arden question: “How can people more fully appreciate the magic and wonder they already have around them?” As advertising experts, we are supposed to be the authorities on adding perceived value to things. So we should ask ourselves why the public’s appreciation of most things (especially those things provided by private enterprise) is so woefully low. Ask people about their mobile phone, their Sky+, their broadband connection… goods which would have seemed miraculous to our grandparents… and within a minute or so you’ll be listening to morose complaints about the monthly bill.

It seems to me that, if we were seeking gratitude rather than money, most capitalists would have given up the game decades ago. 60 years ago, under communism, a few million Russians were happy to die for the right to queue for a potato. Today, in a market economy, people who buying a microwave oven for £70 at 2 o’clock in the morning complain if they have a three minute wait.

Excerpt from: Rory Sutherland: The Wiki Man by Rory Sutherland

💎 On consuming the product (not the brand)

The foolhardy researcher who dared question the cola dogma was Read Montague of Baylor College of Medicine. In 2005 Montague conducted a scientifically controlled, double-blind version of the Pepsi challenge. Participants received two unlabeled cups containing Coke and Pepsi. They were asked to drink them and indicate which tasted better. The result—an even split between the two drinks, with no correlation between the brand of cola participants claimed to prefer beforehand and the one they chose in the study. Tasters could not distinguish between the two. These results horrify Coke and Pepsi lovers. They insist—science and double-blind tests be damned—that they would have been able to tell the difference.

Excerpt from: Elephants on Acid and other bizarre experiments by Alex Boese

💎 On how poor our recollection of taste can be (how context alters it)

It turns out that we actually have surprisingly little recollection (or awareness) of even that which we tasted only a few moments ago. In one classic demonstration of this phenomenon, known as ‘choice blindness’, shoppers (nearly 200 of them) in a Swedish supermarket were asked whether they would like to take part in a taste test.13 Those who agreed were then given two jams to evaluate. They were similar in terms of their colour and texture (e.g., blackcurrant versus blueberry). Once the shoppers had picked their favourite, they sampled it once again and said why they had chosen it, and what exactly made it so much nicer than the other jam. The shoppers were more than happy to oblige, regaling the experimenter with tales of how it was their favourite, or that it tasted especially good spread on toast, etc.

What many of the shoppers failed to notice, though, was that the jams had been switched before they tasted their ‘preferred’ spread the second time around. The experimenter was using double-ended jam jars in order to effect this switch unnoticed. In other words, the unsuspecting customers were justifying why they liked the spread that they had just rejected.

Excerpt from: Gastrophysics: The New Science of Eating by Charles Spence

💎 On complaints of information overload having a long history (an example from the 1860’s)

In 1860 a young doctor called James Crichton Browne spoke to the Royal Medical Society of Edinburgh in language we would recognise today: ‘We live in an age of electricity, of railways, of gas, and of velocity in thought and action. In the course of one brief month more impressions are conveyed to our brains than reached those of our ancestors in the course of years, and our mentalising machines are called upon for a greater amount of fabric than was required of our grandfathers in the course of a lifetime.’ The roots of information overload run deep.

Excerpt from: Curation: The power of selection in a world of excess by Michael Bhaskar

💎 On the prevalence of hindsight bias (our memories are distorted)

Amos talked about research then being conducted by one of his graduate students at Hebrew University, Baruch Fischhoff. When Richard Nixon announced his surprising intention to visit China and Russia, Fischhoff asked people to assign odds to a list of possible outcomes—say, that Nixon would meet Chairman Mao at least once, that the United States and the Soviet Union would create a joint space program, that a group of Soviet Jews would be arrested for attempting to speak with Nixon, and so on. After the trip, Fischhoff went back and asked the same people to recall the odds they had assigned to each outcome. Their memories of the odds they had assigned to various outcomes were badly distorted. They all believed that they had assigned higher probabilities to what happened than they actually had. They greatly overestimated the odds that they had assigned to what had actually happened.

Excerpt from: The Undoing Project: A Friendship that Changed the World by Michael Lewis

💎 On power of the placebo effect not being uniform (e.g. colour of pill)

As the medical anthropologist Daniel Moerman has documented, one of the important determinants of a drug’s efficacy is the colour of the pill it comes in. When people suffering the symptoms of depression are given the same drug in different colours, they are most likely to get better when the pill is yellow. Sleeping pills, by contrast, tend to be more effective when they’re blue.

Excerpt from: Born Liars: Why We Can’t Live Without Deceit by Ian Leslie

💎 On the phenomenon of wishful seeing (the manifestation of wishful thinking)

In a more recent study, psychologists from New York University asked students to estimate the distance between their own position and a full bottle of water on the table at which they were sitting. Beforehand, they fed some of the students a diet of pretzels to make them thirsty. The thirsty students judged the bottle to be closer than the other students did. Another study revealed that hills appear steeper to us than they actually are, and that this tendency is exaggerated when the observer is old, unhealthy, or wearing a backpack.

Excerpt from: Born Liars: Why We Can’t Live Without Deceit by Ian Leslie

💎 On the importance of curation (the Library of Babel was useless)

The Argentinian writer Jorge Luis Borges wrote a story about the Library of Babel. His library was composed of a near-infinite labyrinth of hexagonal rooms, which contained every possible combination of a 416-page book, randomly sorted. Yes, somewhere in the library was every useful and brilliant possible book. But in reality the library was endless and entirely useless. Without curation, or aggregation, or filtering, the Internet would be such a Borgesian nightmare.

Excerpt from: Curation: The power of selection in a world of excess by Michael Bhaskar

💎 On how the language we use to describe an event shapes our memories (every word is important)

Elizabeth Loftus showed subjects a videotape of a car accident. Some subjects were then asked, ‘How fast were the cars going when they smashed into each other?’, others were asked, ‘How fast were the cars going when they hit one another?’ The average speed given by the first group was 41 miles per hour and by the second 34 miles per hour. A week later subjects were asked whether they had noticed any broken glass resulting from the accident. The presence of broken glass was incorrectly reported by twice as many of the first group as of the second: the suggestion that the cars had been travelling fast had made subjects confabulate the occurrence of broken glass.

Excerpt from: Irrationality: The enemy within by Stuart Sutherland

💎 On hard to read fonts improving the care with which people read (Moses’s Arc)

If there is a dark side to fluency, might there be a bright side to its opposite, disfluency? Alter’s work suggests there might be. In one of his studies, he printed a simple, easy-to-read question: “How many animals of each kind did Moses take on the ark?” Many respondents said two. But when the question was printed in a harder-to-read font, respondents were 35 percent more likely to recognize that it was Noah, not Moses, who built the ark. The less legible font made people more careful readers.

Excerpt from: Hit Makers: The Science of Popularity in an Age of Distraction by Derek Thompson

💎 On how labels can determine how enjoyable our experiences are (cheese and body odour)

Recent research indicates that suggestion not only influences what we smell, but also how we react to smells. In 2005 researchers at Oxford University asked subjects to sniff two odors, one labeled cheddar cheese and the other body odor. Predictably, the subjects rated the body odor as significantly more unpleasant. However, the two smells were identical. Only the labels differed. Consider that the next time you’re enjoying some especially pungent cheese at a cocktail party.

Excerpt from: Elephants on Acid and other bizarre experiments by Alex Boese

💎 On how the sunk cost fallacy can lead to bad decisions (choosing fear of loss over enjoyment)

Hal Arkes and Catehrine Blumer created an experiment in 19S5 which demonstrated your tendency to go fuzzy when sunk costs come along. They asked subjects to assume they had spent S100 on a ticket for a ski trip in Michigan, but soon after found a better ski trip in Wisconsin for S50 and bought a ticket for this trip too. They then asked the people in the study to imagine they learned the two trips overlapped and the tickets couldn’t be refunded or resold. Which one do you think they chose, the $100 good vacation, or the $50 great one?

Over half of the people in the study went with the more expensive trip. It may not have promised to be as fun, but the loss seemed greater. That’s the fallacy at work, because the money is gone no matter what. You can’t get it back. The fallacy prevents you from realizing the best choice is to do whatever promises the better experience in the future, not which negates the feeling of loss in the past.

Excerpt from: You Are Not So Smart: Why Your Memory Is Mostly Fiction, Why You Have Too Many Friends On Facebook And 46 Other Ways You’re Deluding Yourself by David Mcraney

💎 On how the money illusion affects our concept of fairness (a lesson on Wall Street bonuses)

A company is making a small profit. It is located in a community experiencing a recession with substantial unemployment but no inflation. There are many workers anxious to work at the company.

The company decides to decrease wages and salaries 7% this year.

Sixty-two per cent judged the pay cut unfair.

In an another version of the question, the community was said to have ‘substantial unemployment and inflation of 12% . . . The company decided to increase salaries only 5% this year.’ Now 78 per cent said this was acceptable. But of course the workers’ lot is almost identical in both versions. Getting a 5 per cent ‘pay rise’ when prices rise 12 per cent translates into nearly a 7 per cent cut in buying power.

One conclusion is that inflation is the Scroogish employer’s best friend. A similar principle applies to bonuses. It was judged acceptable for a troubled company to skip an annual 10 per cent bonus it had been in the habit of paying, but not to cut pay by 10 per cent for a year. (Wall Street employers, at the mercy of a volatile market, have long made use of this.)

Excerpt from: Priceless: The Myth of Fair Value (and How to Take Advantage of It) by William Poundstone

💎 On how statistics lack emotional impact when compared to images (numbers versus coffins)

For eighteen years, the American media was prohibited from showing photographs of fallen soldiers’ coffins. In February 2009, defence secretary Robert Gates lifted this ban and images flooded on to the Internet. Officially, family members have to give their approval before anything is published, but such a rule is unenforceable. Why was this ban created in the first place? To conceal the true costs of war. We can easily find out the number of casualties, but statistics leave us cold. People, on the other hand, especially dead people, spark an emotional reaction.

Excerpt from: The Art of Thinking Clearly by Rolf Dobelli

💎 On how our expectations of a product shape our experience of it (our beliefs are hard to break)

Consider green goods. Rebecca Strong and I conducted an experiment to quantify the impact of labelling washing-machine tablets as ‘ecologically friendly’.

We sent a group of consumers the same type of washing-machine tablet. They washed a load of clothes and reported back on the tablets performance. The twist was that half were told that they were testing a standard supermarket tablet, the other half a green variant.

Once again, there was an element of subterfuge. We didn’t ask consumers directly what they thought of green goods. Generally, they make positive noises. Instead, we monitored behaviour in test and control conditions.

The results were clear. Those who used the green variant rated the tablet as worse on all metrics.

Respondents scored the eco tablet 9% lower for both effectiveness and likeability, while the number who would recommend the product was 11% lower and the number who would buy it themselves, 18% lower than for the standard version.

Despite eco-friendly products often having a higher price, consumers who tested the green tablet were only prepared to pay £4.41 on average compared to £4.82 for the standard version. Consumers believe that products involve a trade-off: improved eco-friendliness entails corresponding loss in cleaning efficacy. This is a concern for any brand interested in a green variant. If brands in this category are going to successfully sell green variants, they’ll need to counteract these negative associations, or spend heavily to bolster their cleaning credentials.

Excerpt from: The Choice Factory: 25 behavioural biases that influence what we buy by Richard Shotton