Category: Excerpts

💎 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 research nearly killed the great Audi slogan (confident brand heritage)

This was the case with our early work for Audi, and even by 1983 we were still struggling to establish the Audi’s German heritage in a way that was motivating and memorable. We’d written a number of commercials that were due to air but still needed a hook to tie them together.

I remember, on one of my trips to the Audi factory in Ingolstadt, seeing the line ‘Vorsprung durch Technik’ on a fading piece of publicity. When I asked about it our guide dismissed it, saying it was an old line they used in the early 70s.

But it stuck in my mind. When it came to binding our different commercials together I thought, why not use this line? And, importantly, let’s keep it in German. Mad as that sounds…

Excerpt from: Hegarty on Advertising: Turning Intelligence into Magic by John Hegarty

💎 On how priming lowers our threshold of attention (Baader-Meinhof phenomenon)

Have you ever learned a new word (or heard of an obscure sea mammal or an ethnic dance) and then encountered it several times in the space of a few days? You come across it in the news, you overhear it mentioned on the bus and on the radio, and the old issue of National Geographic you’re thumbing through falls open to an article on it. . .

This is priming (fortified with a few low-grade coincidences). When yon skim the newspaper, half-listen to TV, or drive on the motorway, you ignore most of what’s going on around you. Only a few things command attention. Paradoxically, it is unconscious processes that choose which stimuli to pass on to full consciousness. Prior exposure to something (priming) lowers the threshold of attention, so that that something is more likely to be noticed. The upshot is that you have probably encountered your ‘new’ word or car many times before. It’s just that now you’re noticing.

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

💎 On how passing up short term wins can bring long term gain (frame the context)

Mark Twain tells the story of a young boy he met in the mid-West. Every time a stranger came into town the other boys delighted in showing the stranger just how stupid this boy was.

They’d hold out two coins, a dime (10 cents) and a nickel (5 cents) and tell the boy he could keep one.

He’d always pick the nickel because it was bigger.

Every time he did it all the other boys laughed.

Mark Twain took him aside and said, “Son, I have to tell you that the small coin is worth more than the bigger one.”

The boy said, “I know that mister. But how many times do you think they’d let me choose if I picked the more valuable one?”

In the original context, the boy is stupid.

Change the context, and he’s smart.

Excerpt from: Creative Mischief by Dave Trott

💎 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

💎 On how our behaviour can change the physical make up of our brain (e.g. London cab drivers)

It’s not just repeated physical actions that can rewire our brains. Purely mental activity can also alter our neural circuitry, sometimes in far-reaching ways. In the late 1990s, a group of British researchers scanned the brains of sixteen London cab drivers who had between two and forty-two years of experience behind the wheel. When they compared the scans with those of a control group, they found that the taxi drivers’ posterior hippocampus, a part of the brain that plays a key role in storing spatial representation won much larger than normal.

Excerpt from: The Shallows: How the internet is changing the way we think, read and remember by Nicholas Carr

💎 On how much we’re prepared to pay for a product being partly determined by what we compare it to (beer versus wine)

I ran an experiment among my colleagues using King Cobra, a little known variant of Cobra lager. It’s a strong Indian beer, with an ABV of 7.5%, and it comes in a 750ml serving, the same size as a wine bottle.

A little subterfuge was required. I told my colleagues that we needed to run some tastings for a client. I organised two separate tastings of the beer alongside half a dozen other drinks. The participants rated the taste of the drinks on a scale from one to ten and said how much they’d be prepared to pay for each one in a supermarket.

The twist was that in each tasting Cobra was served alongside a different selection of drinks: in the first case bottled beers; in the second wines. The accompanying drinks had a significant effect on the amount people were prepared to pay for Cobra. When it was accompanied by bottled beers they offered £3.75, but when it was served with a selection of wines that rose, by 28%, to £4.80.

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

💎 On how much we value a product partly depending on what we compare it to (choose your comparisons carefully)

Christopher Hsee, George Loewenstein, Sally Blount and Max H. Bazerman once ran an experiment in which they asked people browsing used textbooks how much they would pay for a music dictionary that had 10,000 words and was in perfect condition. Another group was asked how much they would pay for a music dictionary with 20,000 words but a torn front cover. Neither group knew about the other dictionary. On average, the students were willing to pay $24 for the 10,000-word dictionary and $20 for the cover-torn 20,000-word one. The cover – irrelevant to looking up words – made a big difference.

The researchers then cornered another group and presented them with both options simultaneously. Now the students could compare the two options side by side. That changed their perception of the products. In this easy-to-compare group, the students said they would pay $19 for the 10,000-word dictionary and $27 for the 20,000-word one with the torn cover. Suddenly, with the introduction of a more clearly comparable aspect – number of words – the larger dictionary became more valuable, despite the torn cover.

Excerpt from: Small Change: Money Mishaps and How to Avoid Them by Dan Ariely and Jeff Kreisler

💎 On how survey answers can be swayed (by how question is asked)

For example, a questionnaire on the number of headaches people experience in one week was given to two different groups of subjects. One group had to indicate whether the number was 1-5, 6-10, 11-15, and so on, while the other was presented with the numbers broken down into 1-3, 4-6, 7-9, etc. The first group reported many more headaches than the second. Moreover, almost everyone is influenced by the two end points of a scale, tending to pick a number that is near the middle.

Excerpt from: Irrationality: The enemy within by Stuart Sutherland

💎 On how contactless payments reduce price sensitivity (beware overspend)

What about new payment technologies?

Recently we have seen a flurry of new payment methods – the most widespread of which are contactless cards. Gabrielle Hobday and I investigated how contactless cards affected price sensitivity by posing three questions to people leaving coffee shops in Central London:

How much did you spend?

What means of payment did you use?

Please can we see your receipt?

The last question was crucial, as it let us compare recollection with reality.

The findings were striking. People paying with cash typically overestimated their spend by 9%, whereas those using contactless cards underestimated by 5%. A stretch of 14 percentage points. Credit card estimates were, in contrast, spot on.

The variation is important: on a typical supermarket shop of £25, the 14% difference between recollections of spend on a contactless card and cash amounts to £3.50. Contactless cards could be the difference between remembering a shopping trip as expensive or cheap. It is this memory that determines whether shoppers return. A positive recollection can either be achieved by steep discounting, which erodes profits, or by an innovative approach to payment.

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

💎 On speculation about the future often being pointless (as it is little better than chance)

It’s fun to speculate about what those inventions might be, but history cautions against placing much faith in futurology. Fifty years ago, Herman Kahn and Anthony J. Wiener published The Year 2000: A Framework For Speculation. Their crystal-ball gazing got a lot right about information and communication technology. They predicted colour photocopying, multiple uses for lasers, ‘two-way pocket phones’ and automated real-time banking. That’s impressive. But Kahn and Wiener also predicted undersea colonies, silent helicopter-taxis and cities lit by artificial moons. Nothing looks more dated than yesterday’s technology shows and yesterday’s science fiction.

Excerpt from: Fifty Things that Made the Modern Economy by Tim Harford

💎 On how modern tech can weaken our memory (smartphone cameras)

But a 2013 study conducted by Linda Henkel of Fairfield University pointed in that direction. Henkel noticed that visitors to art museums are obsessed with taking cell-phone shots of artworks and often are less interested in looking at the art itself. So she performed an experiment at Fairfield University’s Bellarmine Museum of Art. Undergraduates took a guided tour in which they were directed to view specific artworks. Some were instructed to photograph the art, and others were simply told to take note of it. The next day both groups were quizzed on their knowledge of the artworks. The visitors who snapped pictures were less able to identify works and to recall visual details.

Excerpt from: Head in the Cloud by William Poundstone

💎 On how deference to authority can distort memories (status and height)

In the experiment conducted by Wilson on 5 classes of Australian students a man was introduced as a visitor from Cambridge University in England. However, his status at Cambridge was represented differently in each of the classes. To one class, he was presented as a student; to a second class, a demonstrator; to another, a lecturer; to yet another, a senior lecturer; to a fifth, a professor. After he left the room, each class was asked to estimate his height. It was found that with each increase in status, the same man grew in perceived height by an average of a half inch, so that as the “professor” he was seen as two and a half inches taller than as the “student.”

Excerpt from: Influence: The Psychology of Persuasion by Robert Cialdini

💎 On how developments in seemingly inconsequential areas trigger much more improved developments in another (the hummingbird effect)

I have called this phenomenon “the hummingbird effect”: the process by which an innovation in one field sets in motion transformations in seemingly unrelated fields. The taste for coffee helped create the modern institutions of journalism; a handful of elegantly decorated fabric shops helped trigger the industrial revolution. When human beings create and share experiences designed to delight or amaze, they often end up transforming society in more dramatic ways than people focused on more utilitarian concerns.

Excerpt from: Wonderland: How Play Made the Modern World by Steven Johnson

💎 On the danger of grandiose marketing objectives (wishful bullshit)

Macho marketing language is common, but dangerous. And objective setting is where it’s perhaps most dangerous. Marketing plans are littered with words like ‘disrupting’ and ‘transforming’. Plans hardly ever use more modest, but more realistic, words like ‘nudging’, ‘reinforcing’ or ‘reassuring’ – they just don’t sound impressive enough. It probably doesn’t help that the box on the brief titled ‘objective’ has often been replaced nowadays by one called ‘ambition’ or ‘vision’. And when the brand plan writer won’t be there in two years’ time anyway, they may as well write wishful bullshit.

Excerpt from: How not to Plan: 66 ways to screw it up by Les Binet and Sarah Carter

💎 On the dangers of a mindless deference to authority (rectal earache)

Errors in the medicine patients receive can occur for a variety of reasons. However, a book entitled Medication Errors: Causes and Prevention by two Temple University pharmacology professors, Michael Cohen and Neil Davis, attributes much of the problem to the mindless deference given the “boss” of the patient’s case: the attending physician. According to Professor Cohen, “in case after case, patients, nurses, pharmacists, and other physicians do not question the prescription.” Take, for example, the strange case of the “rectal earache” reported by Cohen and Davis. A physician ordered ear drops to be administered to the right ear of a patient suffering pain and infection there. But instead of writing out completely the location “right ear” on the prescription, the doctor abbreviated it so that the instructions read “place in R ear. Upon receiving the prescription. the duty nurse promptly put the required number of ear drops into the patient’s anus.

Excerpt from: Influence: The Psychology of Persuasion by Robert Cialdini

💎 On the cumulative power of multiple small improvements (professional cycling)

Brailsford and his coaches began by making small adjustments you might expect from a professional cycling team. They redesigned the bike seats to make them more comfortable and rubbed alcohol on the tires for a better grip. They asked riders to wear electrically heated overshorts to maintain ideal muscle temperature while riding and used biofeedback sensors to monitor how each athlete responded to a particular workout. The team tested various fabrics in a wind tunnel and had their outdoor riders switch to indoor racing suits, which proved to be lighter and more aerodynamic.

But they didn’t stop there. Brailsford and his team continued to find 1 percent improvements in overlooked and unexpected areas. They tested different types of massage gels to see which one led to the fastest muscle recovery. They hired a surgeon to teach each rider the best way to wash their hands to reduce the chances of catching a cold. They determined the type of pillow and mattress that led to the best night’s sleep for each rider. They even painted the inside of the team truck white, which helped them spot little bits of dust that would normally slip by unnoticed but could degrade the performance of the finely tuned bikes.

As these and hundreds of other small improvements accumulated…

Excerpt from: Atomic Habits: An Easy and Proven Way to Build Good Habits and Break Bad Ones by James Clear

💎 On how random clusters are mistaken for patterns (let the rice rain down)

To see why, stand on the carpet – but choose one with a pile that is not too deep (you might in any case want a vacuum cleaner to hand) – take a bag of rice, pull the top of the packet wide open … and chuck the contents straight into the air. Your aim is to eject the whole lot skyward in one jolt. Let the rice rain down.

What you have done is create a chance distribution of rice grains over the carpet. Observe the way the rice is scattered. One thing the grains have probably not done is fall evenly. There are thin patches here, thicker ones there and, every so often, a much larger and distinct pile of rice: it has clustered.

Wherever cases of cancer bunch, people demand an explanation. With rice, they would see exactly the same sort of pattern, but does it need an explanation? Imagine each grain of rice as a cancer case falling across the country. The example shows that clustering, as the result of chance alone, is to be expected. The truly weird result would be if the rice had spread itself in a smooth, regular layer. Similarly, the genuinely odd pattern of illness would be an even distribution of cases across the population.

Excerpt from: The Tiger That Isn’t: Seeing Through a World of Numbers by Andrew Dilnot and Michael Blastland

💎 On conformity having deep roots (nut cracking)

The normal behavior of the tribe often overpowers the desired behavior of the individual. For example, one study found that when a chimpanzee learns an effective way to crack nuts open as a member of one group and then switches to a new group that uses a less effective strategy, it will avoid using the superior nut cracking method just to blend in with the rest of the chimps.

Humans are similar. There is tremendous internal pressure to comply with the norms of the group.

Excerpt from: Atomic Habits: An Easy and Proven Way to Build Good Habits and Break Bad Ones by James Clear

💎 On making communication entertaining and to the point (nobody wants to read your shit)

Nobody wants to read anything.

Let me repeat that. Nobody—not even your dog or your mother—has the slightest interest in your commercial for Rice Krispies or Delco batteries or Preparation H. Nor does anybody care about your one-act play, your Facebook page or your new sesame chicken joint at Canal and Tchoupitoulas.

It isn’t that people are mean or cruel. They’re just busy.

Nobody wants to read your shit.

Excerpt from: The War of Art: Break Through the Blocks and Win Your Inner Creative Battles by Steven Pressfield

💎 On strongest memory of taste tending to be the first bite (olfactory change blindness)

We are all in a constant state of ‘olfactory change blindness’. Intriguingly, this is something that the food companies have been trying to exploit to their, and hopefully our, advantage for a few years now. The basic idea is that you load all the tasty but unhealthy ingredients into the first and possibly last bite of a food, and reduce their concentration in the middle of the product, when the consumers are not paying so much attention to the tasting experience. Just think about a loaf of bread with the salt asymmetrically distributed towards the crust. The consumer will have a great-tasting first bite, and then their brain will ‘fill in’ the rest by assuming that it tastes exactly like the first mouthful did. This strategy will probably work just as long as the meal isn’t high tea and the taster eating cucumber sandwiches with the crusts cut off! Or imagine something like a bar of chocolate, which most people will presumably start and finish at the ends, not in the middle. In fact, Unilever has a number of patents in just this space.

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

💎 On power of brand versus physical assets (you take the factory, give me the trademark)

Or, as John Stuart, chairman of Quaker Oats, said, “If this business were to be split up, I would be glad to take the brands, trademarks, and goodwill, and you could have all the bricks and mortar—and I would fare better than you” (in Dyson et al. 1996, 9).

Excerpt from: Branded Nation: The Marketing of Megachurch. College Inc.. and Museumworld by James Twitchell

💎 On the power of the internet to remove our inhibitions (it doesn’t judge)

The researchers were able to conduct a field experiment into how the introduction of technology changed the content of customer orders. According to the data, online customers chose pizzas that were more complicated and expensive, containing 33 percent more toppings and 6 percent more calories. Instead of just ordering a pepperoni pizza, they chose pies that featured highly unusual toppings, such as “quadruple bacon” or ham, pineapple, and mushroom. (When orders were placed online, bacon sales increased by 20 percent.)

Excerpt from: The Smarter Screen: Surprising Ways to Influence and Improve Online Behavior by Shlomo Benartzi and Jonah Lehrer

💎 On the problem with opinion polls (many opinions are invented on the spot)

One alternative would be an opinion poll. The drawback is that many “opinions” are invented on the spot to satisfy a pollster. Political scientist George Bishop once demonstrated this by asking people whether they favoured repeal of the “Public Affairs Act of 1975.” There was no such act. But thirty percent took the bait and offered an opinion. Bishop found that the less educated were more likely to claim an opinion.

Excerpt from: Head in the Cloud by William Poundstone

💎 On the power of social proof and conformity (devaluing their own opinion)

In 1935 the pioneering social psychologist Mazafer Sherif invited people to take part in an experiment using the autokinetic effect. Participants looked at a point of light in a darkened room and were asked to report whether they thought the light was static or moving, a recreation of a natural phenomenon first observed by astronomers who thought that stars were moving. When participants were asked individually opinion was equally divided; however, when they were put into groups people tended to agree with the majority, even if this meant contradicting what they’d said originally. Later, when asked individually, they continued to subscribe to the group view. In other words, when placed in the context of a group, people will devalue their own opinion in the interest of developing an arbitrary position that is acceptable to the group.

Excerpt from: Consumerology: The Truth about Consumers and the Psychology of Shopping by Philip Graves

💎 On our want (and happiness) for what others want

Females are more attracted to males that have other females close by. Sage grouse hens are more likely to choose to mate with a male if other females have already chosen him. The likelihood of a female fallow deer or sage grouse entering the territory of a male is positively associated with the number of females already present. In a particularly clever experiment, scientists found that placing a stuffed female black grouse in the territory of a male who had failed to mate resulted in an increase in the number of females who enter that luckless male’s territory. Females are influenced by the preferences of other females.

At the human level as well, our automatic, nonconscious mental system uses the preferences of others to help us form our own preferences and even to help us evaluate how happy we are with a choice we have already made.

Excerpt from: 7 Secrets of Persuasion by James Crimmins

💎 On small changes leading to big outcomes (behaviour change)

In 2012 Facebook tweaked the algorithm to manipulate the emotional content appearing in newsfeeds of 689,003 randomly selected, unwitting users. Posts were identified as either positive’ (awesome!) or negative’ (bummer) based on the words used. In one group, Facebook reduced the positive content of news feeds, and in the other, it reduced the negative content. ‘We did this research because we care about the emotional impact of Facebook and the people that use our product,’ Kramer says. ‘We felt that it was important to investigate the common worry that seeing friends post positive content leads to people feeling negative or left out. At the same time, we were concerned that exposure to friends’ negativity might lead people to avoid visiting Facebook.’ Did tinkering with the content change the emotional state of users? Yes, the authors discovered. The exposure led some users to change their own behaviours: the researchers found people who had positive words removed from their feeds made fewer positive posts and more negative ones, and vice versa. It could have been an online version of monkey see, monkey do, or simply a matter of keeping up with the Joneses. ‘The results show emotional contagion’, Adam Kramer and his co-authors write in the academic paper.

Excerpt from: Who Can You Trust?: How Technology Brought Us Together – and Why It Could Drive Us Apart by Rachel Botsman

💎 On too much polling being bad for political parties (just like brands)

As a consequence, government too often moves from active to reactive — from thinking of new ideas to pandering to the latest popular trend. Public opinion, says Nadhim Zahawi, a Tory MP and founder of the polling firm YouGov, ‘used to be like a fine Scotch whisky: sipped and savoured occasionally’. Outside election season, Margaret Thatcher only received monthly updates on what voters thought, if that. Now, governments swig from that bottle every day.

You could argue that this helps them respond instantly to voters’ concerns. Yet all too often it leads to a focus on presentation over policy, and a willingness to back down in the face of noisy opposition (which itself is easier to put together in a more connected and less hierarchical age). As Zahawi says, ‘polls can only tell you how you should communicate what you want to do. They can’t tell you what you should do. Every policy creates a minority of losers, yet always the losers who are best organised and most vocal, particularly in an online arena.’

Excerpt from: The Great Acceleration: How the World is Getting Faster, Faster by Robert Colvile

💎 On more information leading to worse decisions (investment losses)

Why does this matter? There’s solid evidence that experiencing such losses—noticing that our portfolio is losing money—leads to poor choices. In one lab experiment by Richard Thaler, Amos Tversky, Daniel Kahneman, and Alan Schwartz, subjects were far more likely to invest in a bond fund when feedback was given more frequently. Unfortunately, these low-risk bonds also generate lower returns over the long haul. As the scientists noted, “Providing such investors with frequent feedback about their outcomes is likely to encourage their worst tendencies…. More is not always better. The subjects with the most data did the worst in terms of money earned.” Such is the vicious circle of loss aversion, as our strong dislike of losses causes us to lose even more.

Excerpt from: The Smarter Screen: Surprising Ways to Influence and Improve Online Behavior by Shlomo Benartzi and Jonah Lehrer

💎 On claiming to do one thing well versus listing multiple benefits (perceived as less effective)

When an activity claims to satisfy multiple goals it is perceived as less effective than an activity with a single dedicated goal.

Students rated aerobic exercise as a more effective means of achieving a goal when it was described with one health goal (protecting from heart disease) than two goals (protecting from heart disease and maintaining healthy bones).

UNSEEN OPPORTUNITY

To maximise perceived effectiveness, you may need to claim to do just one thing well rather than present a longer list of I multiple benefits.

Excerpt from: The Unseen Mind by Ogilvy Change