Category: Experience

💎 On giving people too much choice (paralysing their decision making)

Another study, conducted by Shafir and a colleague, Donald Redelmeier, demonstrates that paralysis can also be caused by choice. Imagine, for example, that you are in college and you face the following choice one evening. What would you do?

  1. Attend a lecture by an author you admire who is visiting just for the evening, or
  2. Go to the library and study.

Studying doesn’t look so attractive compared with a once in a life-time lecture. When this choice was given to actual college students only 21 percent decided to study.

Suppose, instead, you had been given three choices:

  1. Attend the lecture.
  2. Go to the library and study.
  3. Watch a foreign film that you’ve been wanting to see.

Does you answer differ? Remarkably, when a different group of students were given the three choices, 30 percent decided to study – double the number who did before. Giving students two good alternatives to studying rather than one paradoxically makes them less likely to choose either.

Excerpt from: Made to Stick: Why some ideas take hold and others come unstuck by Chip Heath and Dan Heath

💎 On how our habits can be changed by environment (beating Heroin addiction)

In 1971, as the Vietnam War was heading into its sixteenth year, congressman Robert Steele from Connecticut and Morgan Murphy from Illinois made a discovery that stunned the American public. While visiting the troops, they had learned that over 15 percent of U.S. soldiers stationed there were heroin addicts. Follow-up research revealed that 35 percent of service members in Vietnam had tried heroin and as many as 20 percent were addicted — the problem was even worse than they had initially thought.

The discovery led to a flurry of activity in Washington, including the creation of the Special Action Office of Drug Abuse Prevention under President Nixon to promote prevention and rehabilitation and to track adducted service members when they returned home.

Lee Robins was one of the researchers in charge. In a finding that completely upended the accepted beliefs about addiction, Robins found that when soldiers who had been heroin users returned home, only 5 percent of them became re-addicted within a year, and just 12 percent relapsed within three years. In other words, approximately nine out of ten soldiers who used heroin in Vietnam eliminated their addition nearly overnight.

This finding contradicted the prevailing view at the time, which considered heroin addiction to be a permanent and irreversible condition. Instead, Robins revealed that addiction could spontaneously dissolve if there was a radical change in the environment. In Vietnam, soldiers spent all day surrounded by cues triggering heroin use: it was easy to access, they were engulfed by the constant stress of war, they build friendships with fellow soldiers who were also heroin users, and they were thousands of miles from home. Once a soldier returned to the United States, though, he found himself in an environment devoid of those triggers. When the context changed, so did the habit.

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

💎 On Social Proof’s deep roots (the deepest human desires is to belong)

Humans are herd animals. We want to fit in, to bond with others, and to earn the respect and approval of our peers. Such inclinations are essential to our survival. For most of our evolutionary history, our ancestors lived in tribes. Becoming separated from the tribe — or worse, being cast out — was death sentence. “The lone wold dies, but the pack survives.”

Meanwhile, those who collaborated and bonded with other enjoyed increased safety, mating opportunities, and access to resources. As Charles Darwin noted, “In the long history of humankind, those who learned to collaborate and improvise most effectively have prevailed.” As a result, one of the deepest human desires is to belong. And this ancient preference exerts a powerful influence on our modern behaviours.

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

💎 On how higher prices increase joy but not happiness (think about your car)

How much pleasure do you get from your car? Put it on a scale from 0 to 10. If you don’t own a car, then do the same for your house, your flat, your laptop, anything like that. Psychologists Norbert Schwarz, Daniel Kahneman and Jing Xu asked motorists this question and compared their responses with the monetary value of the vehicle. The result? The more luxurious the car, the more pleasure it gave the owner. A BMW 7 Series generates about fifty percent more pleasure than a Ford Escort. So far, so good: when somebody sinks a load f money in a vehicle, at least they felt a good return on their investment in the form of joy.

Now, let’s ask a slightly different question: how happy were you during your last car trip? The researchers posed the question too, and again compared the motorists’ answers with values of their cars. The result? No correlation. No matter how luxurious or how shabby the vehicle, the owners’ happiness ratings were all equally rock bottom.

Excerpt from: The Art of the Good Life: Clear Thinking for Business and a Better Life by Rolf Dobelli

💎 On reframing the frustration of waiting times (by Uber)

Let me give a simple example. The Uber map is a psychological moonshot, because it does not reduce the waiting time for a taxi but simply makes waiting 90 per cent less frustrating. This innovation came from the founder’s flash of insight (while watching a James Bond film, no less) that, regardless of what we say, we are much bothered by the uncertainty of waiting than by the duration of a wait. The invention of the map was perhaps equivalent to multiplying the number of cabs on the road by a factor of ten — not because waiting times got any shorter, but because they felt ten times less irritating.

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

💎 On the value of removing temptation rather than trying to resist it (beating procrastination)

In the summer of 1830, Victor Hugo was facing an impossible deadline. Twelve months earlier, the French author had promised his publisher a new book. But instead of writing, he spent that year pursuing other projects, entertaining guests, and delaying his work. Frustrated, Hugo’s publisher responded by setting a deadline less than six months away. The book had to be finished by February 1831.

Hugo concocted a strange plan to beat his procrastination. He collected all of his clothes and asked an assistant to lock them away in a large chest. He was left with nothing to wear except a large shawl. Lacking any suitable clothing to go outdoors, he remained in his study and wrote furiously during the fall and winter of 1830. The Hunchback of Notre Dame was published two weeks early on January 14, 1831.

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

💎 On the importance of social context when interpreting messages (the art of gift giving)

Robert Zion, the social psychologist, once described cognitive psychology as ‘social psychology with all the interesting variables set to zero’. The point he was making is that humans are a deeply social species (which may mean that research into human behaviour or choices in artificial experiments where there is no social contest isn’t really all that useful). In the real work, social context is absolutely critical. For instance, as the anthropologist Pierre Bourdieu observes, gift giving is viewed as a good thing in most human societies, but it only takes a very small change in context to make a gift an insult rather than a blessing; returning a present to the person who has given it to you, for example, is one of the rudest things you can do. Similarly, offering people money when they do something you like makes perfect sense according to economic theory and is called an incentive, but this does not mean you should try and pay your spouse for sex.

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

💎 We seek out information that fits with what we want to hear (health problems)

Here’s a more scientific example of how this tendency works. Two psychologists, Peter Ditto (of the University of California, Irvine) and David Lopez (founder and CEO of iAnalytics Statistical Consulting), told participants that they would take a test to determine whether they had a dangerous enzyme deficiency. For the test, participants had to put a drop of saliva on a strip and then wait for the results. Some learned that the strip would turn green if they had the deficiency; others learned that green meant they did not have the deficiency. The strip wasn’t a real test — it was simply a piece of paper that ever changed its color. The result? Participants who hoped to see the test strip turn green as evidence that they didn’t have the deficiency waited much longer than those who hoped not to see it turn green. That is, people waited more patiently for data when they believed the data would reassure them than when the believed it would scare them.

Excerpt from: Rebel Talent: Why It Pays to Break the Rules at Work and in Life by Francesca Gino

💎 On the power of unexpected rewards (freelancer productivity)

As another example, an HBS study of the freelancer contracting site oDesk (now renamed Upwork) found that surprise incentives resulted in greater employee effort than higher pay. Harvard Business School researchers posted a data-entry job on oDesk that would take four hours. One of the postings offered $3 per hour fo the job; the other offered $4 per hour. People with past data-entry experience were hired at either the $3 or $4 rate. But some of those who were initially told they’d be paid $3 were later told that the hiring company had a bigger budget than what they expected: “Therefore, we will pay you $4 per hours instead of $3 per hour.” The group initially hired at $4 an hour worked no harder than this hired at $3. But those who received the surprise raise worked substantially harder than the other two groups, and among those with experience, their effort more than made up for the cost of the extra pay.

Excerpt from: Rebel Talent: Why It Pays to Break the Rules at Work and in Life by Francesca Gino

💎 On leading from the front (an example of Napoleon’s leadership)

One battery in particular was critical to the bombardment due to its elevated terrain. But it was also the most vulnerable to counterattack, thus making it the most dangerous to operate. Bonaparte’s superiors informed him that no soldier would volunteer to man the battery. Walking through camp in contemplation he spotted a printing machine which gave him an idea. He created a sign to hang near the battery: “The battery of the men without fear.” When the other soldiers saw it the next morning they clamoured to earn the honor of operating that cannon. Bonaparte himself wielded a ramrod alongside his gunners. The cannon was manned day and night. The French won the battle; Bonaparte won the acclaim.

Excerpt from: Rebel Talent: Why It Pays to Break the Rules at Work and in Life by Francesca Gino

💎 On experts’ inability to say they don’t know (fear of looking stupid)

In 2010, a group of mathematicians, historians and athletes were tasked with identifying certain names that represented significant figures within each discipline. They had to discern whether Johannes de Groot or Benoit Theron were famous mathematicians, for instance, and they could answer, Yes, No, or Don’t Know. As you might hope, the experts were better at picking out the right people (such as Johannes de Groot, who really was a mathematician) if they fell within their discipline. But they were also more likely to say they recognised the made-up figures (in this case, Benoit Theron). When their self-perception of expertise was under question, they would rather take a guess and ‘over-claim’ the extent of their knowledge than admit their ignorance with a ‘don’t know’.

Excerpt from: The Intelligence Trap: Why Smart People Do Stupid Things and how to Make Wiser Decisions by David Robson

💎 On our tendency to be unrealistically optimistic (see divorce rates)

People are unrealistically optimistic even when the stakes are high. About 50 percent of marriages end in divorce, and this is a statistic most people have heard. But around the time of the ceremony, almost all couples believe that there is approximately a zero percent chance that their marriage will end in divorce — even those who have already been divorced! (Second marriage, Samuel Johnson once quipped, ‘is the triumph of hope over experience.’) A similar point applies to entrepreneurs starting new businesses, where the failure rate is at least 50 percent. In one survey of people staring new businesses (typically small businesses, such a contracting firms, restaurants, and salons), respondents were asked two questions: (a) What do you think is the chance of success for a typical business like yours? (b) What is your chance of success? The most common answers to these questions were 50 percent and 90 percent, respectively, and many said 100 percent to to the second question.

Unrealistic optimism can explain a lot of individual risk taking, especially in the domain of risks to life and health.

Excerpt from: Nudge: Improving Decisions About Health, Wealth and Happiness by Richard Thaler and Cass Sunstein

💎 On remembering our choices as better than they actually were (overlooking faults)

Bush’s 8-year term saw the horrific events of September 11th and the controversial wars in Afghanistan and Iraq that followed. Many Bush supporters still focus on the positives of his presidency as a justification for his actions, whilst opposing Democrats will argue their candidate, Gore, would have handled the situation better.

We can often ignore opposing evidence in favour of what we believe is correct (see: confirmation bias). Once we’ve made a decision based on the evidence considered, we don’t like looking like we made the wrong one. To help ensure this, we often over-attribute positive features to the options we’ve chosen and negative features to options not chosen, like political candidates. As a result, we feel good about ourselves and our choices, and have less regret for bad decisions. This makes changing incorrect beliefs an incredibly hard task.

Consumers desire for past choices to be rational and well-made (or at least seem to be) makes them more likely to overlook any faults in an effort to convince themselves and others that they made the right decision.

Excerpt from: Product Gems 1: 101 Science Experiments That Demonstrate How to Build Products People Love by David Greenwood

💎 On the influence of options presented in a relatively large group (our probability judgments are often inaccurate)

I recently watched a competitive swimming heat on television. The race sticks in my mind because 50% of the athletes, four in total, were from the United States. Knowing very little about each participant, nor who the favourite was for the race, at first glance, it looked like the United States had to place in the top three. The result: none of them finished in the top three.

In this case, the size of each category, the country each athlete represented, incorrectly led me to believe they had a better chance of making it into the top three. I incorrectly believed “they had the numbers on their side”.

The category size bias demonstrates how our probability judgments are often inaccurate. Category size can impact the perceived likelihood of a specific outcome, such that an outcome classified into a large (vs small) category is perceived as more likely to occur.

Excerpt from: Product Gems 1: 101 Science Experiments That Demonstrate How to Build Products People Love by David Greenwood

💎 On the remarkable persistence of ideas that are no longer appropriate (fire engines and police cars)

If you thought that ambulances, fire engines and police cars have blue lights in order to be seen better — then you thought wrong. Emergency vehicles have blue lights in order not to be seen…. During the Second World War, the Gestapo began to use blue lights on their cars so as not to disturb the blackout of German cities, which was in force to protect them from the bombers of the Allied Forces. Blue lights are difficult to detect when it is dark. After the war, other police forces continued to use blue lights, although it was totally illogical to do so.

This story about the colour of police lights just goes to show how difficult it can be to introduce a better idea, even though the present one is not effective. The same thing is true of red fire engines. Perhaps you have noticed that ambulances and fire engines in many cites are, in fact, bright yellow? A much more suitable colour for emergency vehicles as bright yellow can be seen more easily in traffic both day and night. Although most of those involved in the fire fighting forces knew that red was not the most suitable colour for the job, it took decades before they dared replace their red vehicles. This might be comforting when you have an excellent idea that no one has any time for!

Excerpt from: The Idea Book by Fredrik Härén

💎 On why the mind is a lot like the human egg (confirmation bias)

The experiments prove that it’s hard to overturn negative opinions. Rejecters of your brand are difficult to convince because they interpret your message through a lens of negativity.

As the legendary stock market investor, Charlie Munger, said:

“The human mind is a lot like the human egg, in that the human egg has a shut-off device. One sperm gets in, and it shuts down so that the next one can’t get in. The human mind has a big tendency of the same sort.”

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

💎 On how the act of labelling or branding changes the elements we notice (and don’t) about an experience

Psychologist Franz Epting explained: “We use diagnostic labels to organise and simplify. But any classification that you come up with,” cautioned Epting, “has got to work by ignoring a lot of other things — with the hope that the things you are ignoring don’t make a difference. And that’s where the rub is. Once you get a label in mind, you don’t notice things that don’t fit within the categories that do make a difference.”

Except from: Sway: The Irresistible Pull of Irrational Behaviour by Ori Brafman and Rom Brafman

💎 On reframing the irritating noise of planes flying overhead (get people involved)

When the US Air Force faced opposition to its flying over residential neighbourhoods someone had the bright idea of circulating much more information about the different aircraft being flown. Though that didn’t reduce the noise level, it certainly change the reactions to it – and as any cognitive psychologist will tell you, most perception is interpretive. “Look – it’s the new F15!” feels very different from, “it’s another bloody plane flying overhead”.

As an aside, as battles continue over airport expansion in the UK and elsewhere, I’m inclined to think that a similar techniques might be used to persuade potentially affected residents as to the benefits of a new runway or airport by offering them generous annual vouchers for flights and holidays around the world from the airport. Rather like the US Air Force’s approach, it might dramatically change how you feel about the noise and be more effective than cash alone. “That’s my holiday to Barbados this year!” you’d think as a plane roars over, giving you a personal and positive interest in the outcome of expansion rather than simply seeing it as an irritation.

Excerpt from: Inside the Nudge Unit: How small changes can make a big difference by David Halpern

💎 On why using claimed data in general to understand your audience can be misleading (Facebook likes vs. Spotify streams)

An example from Seth Stephens-Davidowitz illustates the problem. He looked at the gender of Katy Perry Facebook fans and found that they were overwhelmingly female. However, Spotify listening data revealed the gender split was much more balanced: Perry was in the top ten artists for both genders. If the music label used the Facebook data to target their advertising they’d be way out.

Does that mean the new data streams are junk and best ignored?

Not at all. Observed data is an improvement on claimed data, but it’s still flawed. To understand customers we need a balanced approach, using multiple techniques. If each technique tells us the same story then we can give it greater credence. If they jar then we need to generate a hypothesis to explain the contradiction.

Let’s go back to the Katy Perry example. A simple explanation would be that while both genders enjoy listening to her, far more women are comfortable expressing that publicly. If a record label wants to sell Katy Perry songs or encourage streaming, then Spotify data would be ideal. However, if they want to promote her concerts, it would be better to use the Facebook numbers. Neither data set is right in any absolutist sense – they are right in certain circumstances.

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

💎 On why TED talks are 18 minutes long (long enough to be serious and short enough to hold people’s attention)

It is long enough to be serious and short enough to hold people’s attention. It turns out that this length also works incredibly well online. It’s the length of a coffee break. So, you watch a great talk, and forward the link to two or three people. It can go viral, very easily. The 18-minute length also works much like the way Twitter forces people to be disciplined in what they write. By forcing speakers who are used to going on for 45 minutes to bring it down to 18, you get them to really thing about what they want to say. What is the key point they want to communicate? It has a clarifying effect. It brings discipline.

Excerpt from: TED Talks: The official TED guide to public speaking by Chris Anderson

💎 On the power of aligning incentives (jumping out of a plane)

Here’s another example: in World War 2, US paratroopers had a problem with the fact that, allegedly, one in twenty chutes failed in some way. The soliton was to require the packers and inspectors to regularly jump out of airplanes using parachutes chosen at random from the store. The quality of packing then rose to 100 per cent and stayed there. “The packers are all jumpers,” explained on NCO to Stars and Stripes magazine: ” We try to have each man jump once a month. That’s a pretty food way to keep them honest on the tables.”

Excerpt from: One Step Ahead: Notes from the Problem Solving Unit

💎 On how labour leads to love (baking cakes)

When instant cake mixes were introduced in the 1950s as part of a broader trend to simplify the life of the American housewife by minimising manual labour, housewives were initially resistant. The mixes made cooking too easy, making their labour and skill seem undervalued.

Learning this, Betty Crocker, one of the leading manufacturers of mixes, changed their recipe to require adding an egg. This simple change caused sales to skyrocket. Infusing the task with labour appeared to be a crucial ingredient in the product’s success.

When people create products with their own labour, their effort increases their perception of the end product’s valuation. And while some labour is enjoyable and allows for product customisation—both of which might increase valuation—research suggests that labour alone can be sufficient to induce greater liking and value associated with the results.

Excerpt from: Product Gems 2: 109 Science Experiments That Demonstrate How to Build Products People Love by David Greenwood

💎 On the power of uncertainty to increase savings participation (Premium Bonds)

More than 22 million UK citizens, about one-third of the population, have invested over £68 billion in premium bonds despite the interest rate they offer is well below that offered by other savings products. The reality is, unless you win one of the very large prizes, you will be worse off holding premium bonds than investing elsewhere.

So why are they so popular? It’s down to uncertainty. Uncertainty creates more positive, exciting experiences. We get excited by the unknown. Uncertainty increases one’s investment of effort, time, and money in pursuing rewards—even when the outcome is likely to be worse than more certain alternatives.

Excerpt from: Product Gems 2: 109 Science Experiments That Demonstrate How to Build Products People Love by David Greenwood

💎 On obsessing over easily quantified data often having damaging results (the invention of the Tesco “Free From” range)

The obsession with easily quantified date crowds out the need for discretion and judgement.

Two examples illustrate the resulting issues. First is the experience of Terry Leahy who, when he was head of marketing at Tesco, analysed the performance of their gluten-free products. The sales data hinted it was an under-performing section – those that bought gluten-free goods only spent a few pounds on these items each shopping trip. A naive interpretation suggested de-listing them to free up valuable shelf space.

However, sceptical of the number, Leahy interviewed gluten-free shoppers and discovered that their choice of supermarket was determined by the availability of those products. They didn’t want to make multiple shopping trips, so the visited whoever had the specialist goods. After all, every shop had milk and eggs but only sone stocked gluten-free goods. Leahy used this insight to launch Tesco’s hugely successful “Free From” range long before the competition.

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

💎 On the danger of falling for the idea of brand love (it’s not because of some strong emotional bond)

“Most of a brand’s customers think and care little about the brand, but the brand manager should care about these people because they represent most of the brand’s sales.” Professor Byron Sharp, How Brands Grow (Oxford University Press).

Even this customers who repeatedly buy from your brand most likely do so out of simple habit and the product delivering on their needs. Contrary to the moonshine widely peddled by many branding and advertising “experts”, it’s not because of some strong emotional bond.

When we exaggerated the role that the brand plays in people’s lives, it leads to self-important and phoney advertising. People are smart enough to realise this and know when they’re being patronised.

Excerpt from: How To Make Better Advertising And Advertising Better by Vic Polinghorne and Andy Palmer

💎 On the power of reframing to define the debate (encouraging support for new policies)

In effect, positioning an idea doesn’t merely “frame” it so that it carries a certain meaning; it actually defines the terms of the debate itself.

For example, by almost two-to-one, Americans say we are spending too much on “welfare” (42 percent) rather than too little (23 percent). Yet an overwhelming 68 percent of American think we are spending too little on “assistance to the poor,” versus a mere 8 percent who think we’re spending too much. Think about it: What is assistance to the poor? Welfare! So while the underlying policy in question may be the same, the definition — welfare versus assistance to the poor — and positioning make all the difference in public reaction. If the context is a government program itself, the process and the public hostility is significant. But if the context is the result of that government program, the support is significant.

Excerpt from: Words That Work: It’s Not What You Say, It’s What People Hear by Frank Luntz

💎 On the danger of forgetting who the end user is (journalists write for other journalists)

There’s another risk factor among the outlets that consider themselves to be “quality” journalism – that writers become more concerned with the opinion of other journalists than with the audience. This is a concern that dates back at least to the 1970s. “Journalists write for other journalists, the people they have lunch with rather than the reader,” an unnamed journalist said at the time, leading one academic to conclude: “Their image of the audience is hazy and unimportant… they care primarily about the reaction of the editor and their fellow-reporters.”

This tendency is exacerbated in US award culture, where the most prestigious prizes favour journalism written in great length – often 10,000 words or more and presented in a dense, discursive fashion. These pieces are often, for a journalist like me, a joy to read and are often produced over the course of months. They are often the very best articles their outlets produce – but it’s not hard to argue that they’re not as accessible or impactful as they could be.

Excerpt from: Post-Truth: How Bullshit Conquered the World by James Ball

💎 On the downside of spreadsheets and the illusions they create (intangible factors aren’t so easily quantified)

The spreadsheet is a tool, but it is also a worldview — reality by the numbers… Because spreadsheets can do so many important things, those who use them tend to lose sight of the crucial fact that the imaginary businesses that they can create on their computers are just that — imaginary. You can’t really duplicate a business inside a computer, just aspects of a business. And since numbers are the strength of spreadsheets, the aspects that get emphasised are the one easily embodied in numbers. Intangible factors aren’t so easily quantified.

Excerpt from: The Tyranny of Metrics by Jerry Muller

💎 On the importance of judging a presentation by its effect (not its technical excellence)

In here delightful book, On Speaking Well, Peggy Noonan (who wrote speeches for former Presidents Bush and Reagan) tells a story about Coco Chanel that illustrates this important distinction. Chanel believed that the hallmark of a great dress was that it didn’t call too much attention to itself. Thus if a woman walked into a room wearing one of her dresses and everyone said, “What a fabulous dress!” she had failed. Success came when the woman walked into the room and people said, “You look fabulous!”

In the same way, a presenter fails if people say “What a great presentation!”.

Excerpt from: Perfect Pitch: The Art of Selling Ideas and Winning New Business by Jon Steel

💎 On our tendency to underestimate how much social proof affects our behaviour (increasing busking donations)

At a busy New York City subway station we hired researchers to count the number of commuters who donated to a street musician as they walked past.

After a short time a small change was made to the situation that had an immediate and impressive impact. Just before an approaching (and unsuspecting) commuter reached the musician, another person (who was in on the act) would drip a few coins into the musician’s hat in view of the approaching commuter. The result? An eight-fold increase in the number of commuters who chose to make a donations.

In a series of post-study interviews with commuters who did donate, every one of them failed to attribute their action to the fact that they had just seen someone else give money first. Instead they provided alliterative justifications: “I liked the song he was playing”; “I’m a generous person”; and “I felt sorry for the guy.”

Excerpt from: The Small BIG: Small Changes that Spark Big Influence by Robert Cialdini, Noah Goldstein, and Steve Martin