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@Matthewwwillcox #Businessofchoice Make the Shortcuts of Human Nature Work for You

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@Matthewwwillcox #Businessofchoice Make the Shortcuts of Human Nature Work for You @MATTHEWWWILLCOX #BUSINESSOFCHOICE MAKE THE SHORTCUTS OF HUMAN NATURE WORK FOR YOU MARKETING is the creation, management, and measurement of programs designed to influence the CHOICES that a program, organization or society needs people to make in order for it to achieve its goals. AND THE ONLY WAY YOU CAN GET PEOPLE TO MAKE THOSE CHOICES IS BY ALIGNING THEM WITH HUMAN NATURE TODAY WE UNDERSTAND MORE ABOUT CHOICE THAN EVER BEFORE A GOLDEN AGE OF DECISION SCIENCE “OUR RATIONAL BRAIN SIMPLY RATIONALIZES WHAT OUR INTUITIVE BRAIN HAS ALREADY DECIDED TO DO.” Baba Shiv Stanford University “THE INTUITIVE SYSTEM IS MORE INFLUENTIAL THAN YOUR EXPERIENCE TELLS YOU, AND IS THE SECRET AUTHOR OF MANY OF THE CHOICES YOU MAKE.” Daniel Kahneman Nobel Prize-winning behavioral economist BEHAVIORAL ECONOMICS IS AN AREA OF PSYCHOLOGY THAT EXPLORES HOW HUMANS BEHAVE AND MAKE CHOICES BY STUDYING THE DIFFERENCES BETWEEN HOW WE SHOULD ACT FROM A RATIONAL, ECONOMIC PERSPECTIVE AND HOW WE REALLY BEHAVE. ! WEIRD! WESTERN, EDUCATED, INDUSTRIALIZED, RICH, DEMOCRATIC! Hazel Markus Stanford University and author of “Culture Clashes: Why Cultures Collide and What You Can Do About It”. ! ! NOT RULES, IMPIRICAL EVIDENCE OR SILVER BULLETS…! ! ! ! ! NOT RULES, IMPIRICAL EVIDENCE OR SILVER BULLETS…! ! ...BUT INSIGHTS TO TRIGGER TRANSFORMATIVE IDEAS! ! ! NOT RULES, IMPIRICAL EVIDENCE OR SILVER BULLETS…! ! ...BUT INSIGHTS TO TRIGGER TRANSFORMATIVE IDEAS! ! ! BEHAVIORAL ECONOMICS' VALUE TO MARKETERS IS THAT IT PROVIDES INSIGHTS INTO HUMAN NATURE ! Individual Differences! Culture and Societal Situational Context! Context! Human Nature! TO UNDERSTAND WHAT PEOPLE WILL DO IN THE NEXT SIX MONTHS… 16! THINK ABOUT WHAT THEY’VE BEEN DOING FOR THE LAST 200,000 YEARS 17! AMERICA’S BIGGEST PHOBIA ! 18 19! WE ARE THE PRODUCT OF A LONG STRING OF CHOICES THAT WERE RIGHT MORE OFTEN THAN THEY WERE WRONG 20! WHAT DRIVES THESE CHOICES? QUICK AND EFFICIENT MENTAL SHORTCUTS 21! THESE SHORTCUTS ARE KNOWN AS HEURISTICS egocentric bias ATTENTIONAL BIAS conservatism endowment effect illusion of validity regressive bias bias confirmation bias curse of knowledge framing effect rationalization pro-innovation bias pseudoconjunction certainty Ambiguity pro-innovation bias effect Texas sharpshooter fallacy -than-average effect bizarreness backfire effect negativity bias planning fallacy time-saving bias unit bias well-traveled congruence bias road effect zero-risk bias zero-sum heuristic von Restroff effect negativity bias actor-observer bias denomination eff loss aversion IKEA effect selection bias functional fixedness anchoring bias pessimism bias LOSSES MATTERMORE THAN GAINS “LOSING HURTS TWICE AS BAD AS WINNING FEELS GOOD.” Sparky Anderson 50% 40% 30% 20% 10% 13.1% 0% PercentageCustomers of Using a ReusableBag No Incentive 50% 40% 30% 20% 15.4% 10% 13.1% 0% PercentageCustomers of Using a ReusableBag No Bonus Incentive 50% 40% 44.2% 30% 20% 15.4% 10% 13.1% 0% PercentageCustomers of Using a ReusableBag No Bonus Tax Incentive NO ONE EVER GOT FIRED FOR BUYING ! 34! THE FUTURE IS A DIFFERENT PLACE HUMANS HAVE AN IRRATIONAL PREFERENCE FOR A SMALLER REWARD NOW OVER A LARGER ONE IN THE FUTURE $50 $100 NOW IN ONE YEAR 37! $50 $100 IN A WEEK IN ONE YEAR AND ONE WEEK 38! PRESENT SELF FUTURE SELF PRESENT OTHER FUTURE OTHER Present Self “…IT’S OFTEN ABOUT GETTING PEOPLE TO DO THE RIGHT THINGS FOR THE WRONG REASONS.” Dan Ariely Author: Predictably Irrational: The Hidden Forces That Shape Our Decisions IF THE BEHAVIOR CHANGE YOU SEEK HAS LONG- TERM BENEFITS, FIND A SHORT–TERM BENEFIT AND LEAD WITH THAT ! ! UNDERSTAND HOW HUMAN NATURE SHAPES PEOPLE’S CHOICES TO CREATE CHOICES THAT ALIGN WITH HOW THE BRAIN NATURALLY WORKS AND MAKE THE BEHAVIOR YOU NEED A NATURAL CHOICE @MATTHEWWWILLCOX #BUSINESSOFCHOICE .
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