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Devil Effect
Our perceptions of one's negative traits bleed unfairly into other unrelated areas
Our next behavioral insight:

Reactance

Why controlling peoples' sense of freedom can trigger an angry motivation to regain it

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New

Reactance

Why controlling peoples' sense of freedom can trigger an angry motivation to regain it

When you nudge too hard, this is what happens...
Zemack‐Rugar, Y., Moore, S. G., & Fitzsimons, G. J. (2017). Just do it! Why committed consumers react negatively to assertive ads. Journal of Consumer Psychology
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Reciprocity Decay

Our desire to give back wanes rapidly with time

Why if you want people to return a favor, you need to act fast
Chuan, A., Kessler, J. B., & Milkman, K. L. (2018). Field study of charitable giving reveals that reciprocity decays over time. Proceedings of the National Academy of Sciences, 201708293.
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The 25 Percent Rule

Social norms can be changed by only a quarter of the group

Why persuading just a fraction of the group can change the beliefs of everyone
Centola, D., Becker, J., Brackbill, D., & Baronchelli, A. (2018). Experimental evidence for tipping points in social convention. Science, 360(6393), 1116-1119.
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Transparency Effect

Nudges can still work on us, even when told we’re being nudged

Concerns about effectiveness vs manipulation can be overcome with this new research
Bruns, H., Kantorowicz-Reznichenko, E., Klement, K., Luistro Jonsson, M., & Rahali, B. (2018). Can Nudges Be Transparent and Yet Effective? Journal of Economic Psychology, Volume 65, Pages 41-59
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Category Size Bias

We're more influenced by options that are put into a relatively-large group.

Yet another bias that proves that our probability judgements are often inaccurate. Find out how you can use it to motivate behaviour change...
Isaac & Brough (2014) Judging a Part by the Size of Its Whole: The Category Size Bias in Probability Judgments. Journal of Consumer Research.
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Lucky Loyalty Effect

Random rewards feel more likely, the more we spend

How consumers' warped sense of entitlement affects your promotional & loyalty strategy
Reczek, Haws, & Summers (2014) Lucky Loyalty: The Effect of Consumer Effort on Predictions of Randomly Determined Marketing Outcomes, Journal of Consumer Research
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Trivialization Effect

We prefer a thank-you over a small monetary reward

This important research tells us why giving customers money can actually hurt your brand...
Liu, Lamberton, & Haws (2015) Should Firms Use Small Financial Benefits to Express Appreciation to Consumers? Understanding and Avoiding Trivialization Effects, Journal of Marketing
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Goal Gradient Effect

Our efforts increase as we move closer to a goal

Our hunger for task completion can be used to motivate and incentivise behaviours and habits you choose.
Kivetz, Urminsky & Zheng (2006) The Goal-Gradient Hypothesis Resurrected
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Optimism Bias

When looking to our future, we tend to inflate the good stuff and downplay the bad...

Why you think you’ll be safer, smarter and more successful than you'll actually end up being...
Sharot (2011), The Optimism Bias. Current Biology.
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Completeness Effect

We place a greater value on products seen as whole in shape

Find out why we eat more chocolate when it's broken into pieces than when it's given to us whole.
Sevilla & Kahn (2014) The Completeness Heuristic: Product Shape Completeness Influences Size Perceptions, Preference, and Consumption. Journal of Marketing Research.
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Motivating-Uncertainty Effect

We're more motivated to reach a goal with an uncertain reward

Why not knowing what you'll get as a reward can nudge you more successfully towards a goal...
Fisbach A, Hsee C. “The Motivating-Uncertainty Effect: Uncertainty Increases Resource Investment in the Process of Reward Pursuit.” Journal of Consumer Research, 2015.
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Noble Edge Effect

Products of caring companies are seen as superior

Why when companies become morally-engaged and give back to society, their products gain a 'noble edge' over less-giving, self-serving competitors...
Chernev, Alexander and Sean Blair (2015), “Doing Well by Doing Good: The Benevolent Halo of Social Goodwill” Journal of Consumer Research
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Nostalgia Effect

Thinking about the past makes us want to pay more now.

New research shows us how nostalgia can influence our buying behaviour by weakening the desire to hold onto our money...
Lasaleta, Sedikides & Vohs (2014) Nostalgia weakens the desire for money. Journal of Consumer Research.
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Speak-Easy Effect

Words that are easier to say are more trustworthy and valuable.

Why blandishing customers with the anomalous may be fatuous & nocuous to your brand...
Song & Schwarz (2007) If It’s Difficult to Pronounce, It Must Be Risky. Psychological Science
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Temptation Coupling

We’re more likely to do the hard stuff when tightly coupled with something tempting.

Want to be fitter, healthier or more successful? This amazing gem shows you how restrictive pleasure-combining will get you there...
Milkman, Minson & Volpp (2013) Holding the Hunger Games Hostage at the Gym: An Evaluation of Temptation Bundling. Management Science
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The Risk of Bundling

Selling experiences in a bundle reduces their individual use.

Find out how the negative effects of bundled purchases can be reduced with this fascinating pricing bias...
Soman & Gourville (2001) Transaction decoupling: how price bundling affects the decision to consume. Journal of Marketing Research.
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Choice Closure

We're more satisfied with choices when we engage in physical acts of closure.

Discover how the simple act of closing a door or turning a lid can make you more satisfied with your final product choice...
Gu, Botti & Faro (2013) Turning the page: the impact of choice closure on satisfaction. Journal of Consumer Research.
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Cashless Effect

We pay more when we can't actually see the money.

Why the shift to the digital wallet will make consumers spend more...
Soman (2003) The Effect of Payment Transparency on Consumption: Quasi-Experiments from the Field. Marketing Letters
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Sunk Cost Effect

We’re reluctant to pull out of something we’d put effort into.

Find out why the more time or money we invest, the more irrational we become...
Arkes, Hal R., and Catherine Blumer, “The psychology of sunk cost”, Organizational Behavior and Human Decision Processes, Vol. 35, No. 5, December 1985, 124-140.
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Social Default Bias

We copy others’ choices when we can't make informed decisions.

This gem explains why when we can't make a choice, we automatically copy others (only when they're not looking)...
Eun Huh, Vosgerau & Morewedge (2014) Social Defaults: Observed Choices Become Choice Defaults. Journal of Consumer Research.
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Fresh Start Effect

We’ll more likely achieve goals set at the start of a new time period

This gem unearths why New Year resolutions are so popular...
Dai, Milkman & Riis (2013) The Fresh Start Effect: Temporal Landmarks That Motivate Aspirational Behaviour. The Wharton School Research Paper No.51
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Bottom Dollar Effect

We rate products negatively when they exhaust our budgets

Find out how your product rating will be affected if it eats up your consumer’s remaining budget...
Soster, Gershoff & Bearden (2014) The Bottom Dollar Effect: The Influence of Spending to Zero on Pain of Payment and Satisfaction. Journal of Consumer Research
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Centre-Stage Effect

Faced with a set of products, we prefer the one in the middle.

Discover how horizontal & vertical product placement can affect your customer’s decision-making, both in-store and on your website...
Rodway, Schepman & Lambert (2012). Preferring the One in the Middle: Further Evidence for the Centre‐stage Effect.
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Endowment Effect

We value something more once we feel we own it

Read why 'perceived ownership' is so powerful, and how you can use it to dramatically improve demand for your product...
Kahneman, Knetsch & Thaler (2009). Experimental Tests of the Endowment Effect and the Coase Theorem.
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Price-Value Bias

How we frame a product’s price & features greatly affects its perceived value.

New research shows us how price framing can be used to increase product satisfaction and reduce feelings of regret after purchase.
Lee & Zhao (2014) The Effect of Price on Preference Consistency Over Time. Journal of Consumer Research.
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Cognitive Miser

We’re intellectually lazy, avoiding hard questions where possible

Our inherent desire to cut corners has massive implications for your product strategy. Read why here...
Neys, Rossi & Houd (2013) Bats, balls, and substitution sensitivity: cognitive misers are no happy fools. Psychonomic Bulletin & Review
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Bye-Now Effect

Reading the word ‘bye’ makes us more likely to buy.

Find out how to encourage certain behaviours through the use of seemingly-unrelated words with this fascinating new bias...
Davis & Herr (2014) From Bye to Buy: Homophones as a Phonological Route to Priming
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Top Ten Effect

We break down ordered lists into smaller ones ending in 0 or 5

Understand why we act irrationally to lists, and the knock-on implications for your marketing budget...
Isaac & Schindler (2014) The Top-Ten Effect: Consumers’ Subjective Categorization of Ranked Lists
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Entourage Effect

Our status is elevated when we share our VIP treatment

In direct conflict with economic theory, find out why reducing scarcity may actually increase your product's value...
McFerran & Argo (2014) The Entourage Effect, Journal of Consumer Research, Vol. 40, No. 5
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Post-Purchase Rationalisation

We tend to justify a purchase by overlooking any faults seen

Consumers' built-in desire to feel great about their poor decisions offers you some unique marketing opportunities...
Cohen & Goldberg (1970). The Dissonance Model in Post-Decision Product Evaluation. Journal of Marketing Research.
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Present Bias

What we want now is not what we aspire to in the future

Consumers' short-term desires and longer term wishes differ wildly. Find out what these differences are, and how best to cater for them...
Milkman, Rogers & Bazerman (2009). Ice cream soon and vegetables later: A study of online grocery purchases and order lead time.
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IKEA Effect

We place disproportionately-high value on self-made products.

Find out how you can dramatically raise your product's value perception by fostering creativity in the sales process...
Norton, Mochon & Ariely (2012) The IKEA effect: When labor leads to love. Journal of Consumer Psychology.
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Hedonic Adaptation

Restricting pleasure increases pleasure

This fascinating study suggests that we shouldn't always give consumers exactly what they say they want...
Leif & Meyvis (2009) Enhancing the Television-Viewing Experience Through Commercial Interruptions, Journal of Consumer Research
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Peak-end Rule

Experiences are mostly judged by their end or peaks

Find out why the highs and lows of your product experience are so critical, and what you should change as a result...
Kahneman, D. (1999) Well-Being: The Foundations of Hedonic Psychology
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Inaction Inertia Effect

Missing an offer means you're less likely to buy in the future

Why missing an opportunity to buy during that promotion can be so damaging for your brand...
van Putten, M et al. (2013) How consumers deal with missed discounts: Transaction decoupling, action orientation and inaction inertia
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Choice Paradox

Too much choice will lead to indecision and lower sales

Find out why offering more variety may indeed harm both profits and the perception of your brand...
Iyengar, S; Lepper, M (2000) When Choice is Demotivating Journal of Personality and Social Psychology, 2000, Vol. 79
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Zeigarnik Effect

Uncompleted tasks stick in your mind more than completed ones

Increased conversion rates, better educational results, and stronger promotions. Read more to find out how the Zeigarnik effect can help you achieve all these...
Zeigarnik, B (1927) Über das Behalten von erledigten und unerledigten Handlungen, Psychologische Forschung
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Anchoring Bias

We tend to rely too heavily on the first piece of information seen

Find out how you can greatly control and affect decision-making using this powerful psychological technique...
Sugden, R; Zheng, J & Zizzo, D (2013) Not all anchors are created equal. Journal of Economic Psychology 39 (2013) 21-31
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Hyperbolic Discounting

We’ll accept smaller payoffs now over larger payoffs later on

Find out why our short-termism and desire for immediate rewards trumps commonsensical thinking, and how you should change your product strategy as a result...
Hardman (2009). Judgment and decision making: psychological perspectives. Wiley-Blackwell.
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Round Pricing Preference

We perceive round numbers as more trustworthy and representing higher quality

Bewildering consumers with a complex pricing strategy may come back to bite you. Find out why here...
Lynn, Flynn, & Helion (2013) Do Consumers Prefer Round Prices? Journal of Economic Psychology
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Von Restorff Effect

Items that stand out from their peers are more memorable

Creating a product strategy that promotes uniqueness is essential, but doing so in the right way is vital. Find out why...
Von Restorff, H. (1933) The effects of field formation in the trace field
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Negativity Bias

We've a greater recall of the unpleasant over the positive

You must have a strategy in place for when things go terribly wrong for your customer journey. Find out why here...
Nguyena & Claus (2013) Good news, bad news, consumer sentiment and consumption behaviour, Journal of Economic Psychology
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