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Irrational behavior& Social Influence

a small introdution

Chris van den BergBusiness Consultant

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Start with a small test

• Half of the group – close you eyes

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Start with a small test

• Other Group

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So….

• Top level bullet 24 point• Second level bullet 20 point• Third level bullet 18 point

— Fourth level (smallest) bullet 16 point

From Predictably Irrational, Dan Ariely

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Another Example

• Top level bullet 24 point• Second level bullet 20 point• Third level bullet 18 point

— Fourth level (smallest) bullet 16 point

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Question

• Mooie pen – Prijs 14 euro, je wilt hem! echter je weet dat hij 15 minuten verder op 7 euro is …. Ga je die 15 minuten op de fiets?

• Mooi pak – Prijs 350 euro, je wilt hem! Echter je weet dat hij 15 minuten verder op 343 euro is … Ga je die 15 minuten op de fiets?

• Waarom ga je de ene keer voor 7 euro op de fiets en de andere keer niet ?!?!?

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A research by Ariely (2003)

• Top level bullet 24 point• Second level bullet 20 point• Third level bullet 18 point

— Fourth level (smallest) bullet 16 point

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Anchoring

• Tom Sawyer and the construction of value (Dan Ariely a, George Loewenstein, Drazen Prelec)

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Zero-Price Model

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Zero-Price Model

• Top level bullet 24 point• Second level bullet 20 point• Third level bullet 18 point

— Fourth level (smallest) bullet 16 point

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Zero-Price Model

• Free … PING!

• More: Zero as a Special Price : The True Value of Free Products, Shampanier, Kristina, Mazar, Nina, Ariely, Dan

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Cola vs Pepsi

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Research on beer

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Research on beer

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Outcome

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• Influence of expectation!

• More: Try It, You'll Like It: The Influence of Expectation, Consumption, and Revelation on Preferences for Beer (Lee, L Frederick, S Ariely, D)

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Placebo effect on Price

• People know that energy drink -> postive effect on puzzles

• Group 1: Get an energy drink• Group 2: Get the same drink but discounted!

• Who will perform better?

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Results

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Results

• Conclusion: Consumers who pay a discounted price for a product may derive less actual benefit form consuming this product!

• More:• Placebo Effects of marketing Actions : Consumers They get what they pay

for. (Shiv, Baba, Carmon, Z, Ariely, D)

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More on this topic:

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Social Influence

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Lift – Candid camera (1962)

• Example:

• http://youtu.be/ltaUpq_26Us

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Social Influence – Asch Conformity Experiment

• Example:

• http://youtu.be/--NjJygJxPc

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Towel reuse

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Social norm message

• Industry standard vs Social Norm Message

• Can we (if we change the message) get more towels reuse?

• Change the message to a “social norm” Message

IS: Importance of environment Protection

SN: Majority of guest do participate at lease once

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Outcome

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EXP2: Other groups? Better results?

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More:

• A Room with a Viewpoint: Using Social Norms to Motivate Environmental Conservation in Hotels (Goldstein, Noah J., Cialdini, Robert B., Griskevicius, Vladas)

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Affect

• Emotions influence the effectiveness of persuasion heuristics

• “Social Proof”: If may others are doing it must be good• “Scarcity”: If a product of opportunity is rare it must be good

• Who know’s booking.com?

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Examples…

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Evolutionary Approach

• Fear -> Want to be with the group• Romance -> Want to be unique

• Research…

• Social proof condition “Visited by over a Million People Each Year.”

• Scarcity: “Stand Out from the Crowd.”

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Outcome

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More:

• Fear and Loving in Las Vegas: Evolution, Emotion, and Persuasion. (Griskevicius, Vladas, Goldstein, Noah J, Mortensen, Chad R, Sundie, Jill M, Cialdini, Robert B, Kenrick, Douglas T

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More on this topic

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The End…

• Will put the presentation on slideshare!