Brainjuicer behavingeconomicallywiththtruth
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Behaving economically with the truth
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All about understanding people and their behaviour
Life Business Government Society Religion
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Always start by calling your audience liars….
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Social animals…
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Apr 7, 2023Month Yr
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Quick summary
We are unreliable witnesses to our own behaviour and motivations We think much less than we like to think we think We are much more influenced by other people than we like to admit
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Intuitive Judgement
“A bat and a ball cost $1.10 in total. The bat costs $1 more than the ball. How much does the ball cost?”
“People are not accustomed to thinking hard, and are often content to trust a plausible judgement that quickly comes to mind.” Daniel Kahnemann, Nobel Prize Winner
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Human behaviour driven by two independent brain systems, 1 & 2 …
ExplicitSlow
AnalyticalLearned
PropositionalConscious
System 2
ImplicitFast
IntuitiveInstinctive
Metaphoric Unconscious
System 1
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Implicit has greater processing power (and is less effortful)
System 2
System 1
50 bit/sec
11,000,000 bit/sec
Zimmerman, M. (1989) "The Nervous System in the Context of Information Theory".
“We are not thinking
machines that feel; we are
feeling machines that think”
Antonio Damasio
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Current view is that emotion simply helps message cut through…
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Current view is that emotion simply helps message cut through…
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But new evidence reveals that the most effective advertising draws people closer to the brand…
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Paul Ekman – how to measure emotion?
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As seen in ‘Lie To Me’ Hit TV Series based on Paul Ekman’s work
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“Which of these faces best expresses how you feel about this ad?”
“To what degree did this ad make you feel
[selected emotion]?”
“And what was it about thisidea that made you feel this way?”
FaceTrace® - Measuring Emotional Appeal
BrainJuicer® 2006
Contempt
Surprise
Anger
Disgust
Happiness
Sadness
Fear
NeutralCaptures ‘Reasons for Emotion’
1Award Winner
2007
2007Award Winner
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Award Winner
2007
2007
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But none of this applies to me….
We are unreliable witnesses to our own behaviour and motivations We think much less than we like to think we think We are much more influenced by other people than we like to admit Our emotions drive our behaviour much more than we like to think
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How we make decisions
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How we make decisions
Case number across the day
Prop
ortio
n of
favo
urab
le d
ecis
ions
Danziger et al, 2011
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“The performance of more effortful tasks will collapse undercognitive load. […] People are not accustomed to thinking hard, and are often content to trust a plausible judgement that quickly comes to mind.”
Daniel Kahneman, Nobel Prize Winner
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Local Environment Influences
5:1 1:2
A. North, D. Hargreaves and J. McKendrick (1997)
Sales Sales
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Choice Influences
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100 98 100 100 100 100
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% of drivers donating organs
Johnson & Goldstein (2003)
Tick the box if you want to participate in the organ donor programme
Tick the box if you don’t want to participate in the organ donor programme
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Social Influences
Bateson et al, 2006
People pay 2.76 times more on average
when eyes are present
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Behavioural Economics: How our decisions are guided
Local & Choice Environment
Social Influences
Inherent Individual Biases
27Wansink & Just, Cornell University
Small nudges have been shown to work
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Basics of Behavioural Economics
Loss Aversion — how the desire to avoid losses crowds out gains
Endowment Effect — how owning something increases its apparent value
Chunking — the psychology behind why simple tasks are easier than complex ones
Prospect Theory — Kahenman & Tversky’s grand theory designed to bring their work on heuristics together
Status Quo Bias — the influence the desire to see things stay the same plays
Gambler’s Fallacy — the most famous example of poor probability reason and confusion over causation
Self-serving bias — the tendency to only notice evidence that supports one’s case, while conveniently over-looking evidence to the contrary
Money Illusion — the tendency to concentrate on nominal number values over real-spending power or economic value
Framing Effect — the central psychology effect that means that identical conditions can be made to ‘feel’ different.
Mental Accounting — the influence of ring-fencing, labeling and tagging certain funds of money for specific purposes.
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Behavioural Economics
People’s decisions are often influenced in ways they can’t really explain or articulate
Identifying “hidden” influences can offer real commercial advantage and provide answers to social and cultural problems
An appreciation of Behavioural Economics can inspire approaches that help us see, understand and predict behaviour better
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How Behavioural Economics challenges traditional research assumptions
We are socially isolated individuals with relatively stable preferences
All our choices are the result of a deliberative, linear and controlled thought processes
People are benefit-maximising and cost-minimising
Behaviour change is brought about through:
– Increased awareness of the issue
– Better information
– Education
The right incentives will help people change their actions
We are socially connected with very malleable preferences
People are motivated by factors beyond benefit-maximisation and cost-minimisation
There are more effective ways to bring about behaviour-change than through:
– Raising awareness
– Providing better information
– ‘Educating’ people
Monetary incentives are not always necessary to get people to change their actions
Our choices are often impulsive and the result of non-linear thought processes
Traditional perspective Behavioural Economic perspective
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Behavioural Economics (Human Heuristics)A New Social Science Discipline
We go with flow
We’re present-biased
We behave in the moment
We maintain a positive self-regard & consistent self-image
We copy
We do what’s expected of us
We’re altruistic
We reciprocate
We’re influenced by our environment
Choices are relative – behaviour depends on options available and how they are presented
Our decisions are based on what we can
store and mental short-cuts
We perceive ‘value’
inconsistently
Individual FactorsSocial Factors
Environment (Physical & Choice Environments)
Messenger stronger than message
We’re much more likely to do something if we make a public commitment
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What do we believe in?
“Market research at its best is mind expanding & profit enhancing, not just risk reducing. At best, it’s full of insight &
illumination that informs & inspires great marketing. At worst, it’s a 120 page insurance policy heavy on numbers, light on insight and
usually dead-on-arrival.
BrainJuicer’s mission is simple. To significantly improve quantitative research, by translating a generation of breakthroughs in
psychology, behaviourial economics & social sciences into Juicy tools that better explain & predict human behaviour.
Great researchers, applying Juicy tools on behalf of brave clients makes for better marketing, bigger brands & a rapidly growing business with potential to change the way research is done.
John Kearon, Chief Juicer
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Have fun with your knowledge and tools
Contempt
Surprise
Anger
Disgust
Happiness
Sadness
Fear
Neutral
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Sometimes
We ask the wrong people We ask them the wrong questions We ask them in the wrong way
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But all is not lost……
Companies have more data on the actual behaviour of their customers than ever before Companies can conduct more experiments on claimed and actual behaviour than were ever
possible before Companies can use different methods to understand their consumers and to build their
businesses
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