150 students completed a simple task and were split into two groups and given either positive or negative feedback on their performance. They were then shown either a one-off print or a mass-produced one and asked how much they’d pay for it.
Those given negative feedback were willing to pay almost 4x more on average for the unique print than those with positive feedback, showing how we use consumption to heal our sense of status.
There are multiple ways to elevate brand status:
Form strategic alliances with successful others with whom you share compatible goals (Thorndike, 1920), e.g. Go-Pro and Red Bull.
Develop your core purpose to raise your products’ perceived value (Chernev & Blair, 2015), e.g. Patagonia who “use business to inspire and implement solutions to the environmental crisis.”
Create and control new ways of promoting industry excellence. Dribbble, a platform for design teams to show off their work provides paid-for "Pro Business" status badges to distinguish the best from the rest.
Invest in a tiered loyalty scheme to elevate consumers’ status & brand attachment (Nunes & Dréze, 2006), e.g. British Airways Executive Club.
172 people were told of a fundraiser called Sheila who needed to sell 100 candy bars for her sports team and told she had to sell either 1 or 21 more bars to meet her quota. They were then asked how likely they were to buy a candy from her.
Those in the almost-complete task state were far more likely to help than when there were many left.
Visualize to motivate.
Showing quantifiable task progress with a visual and numerical indicator will increase completion speed (Cheema & Bagchi, 2011).
How can you heighten desire to close in on the reward?
Note that effort levels will fall after the current reward has been attained, so reframe progress around the next goal.
Be ahead of the curve.
Endow Progressand put more weight on task completion at the start than when close to the goal.
Place easier tasks at start and middle, saving harder or bigger ones for just before reward.
Reframe task size.
Motivation to complete a task is directly proportionate to its size. So, for viewers new to Breaking Bad, instead of Netflix initially highlighting all 5 seasons, reframe the task as a single season with a sense of completion.
Once season 1 is watched, reframe season 2 as a natural extension of 1 but distinct from 3-5.
108 people were told they were the head of an airline that was either 90% complete on a $10m plane project, or shown an equivalent $1m proposal to research and develop this plane. In both cases, a competitor had created a similar plane of superior quality.
In either case, should they still invest the $1m? Those in the 90% sunk cost condition were far more likely to keep on spending than those who had yet to invest anything.
Remind consumers of past personal efforts or the amount of time spent with the brand to increase feelings of a sunk cost. Reframing past efforts as incomplete or as ongoing progress will also induce the effect and assist sales.
Test your product ideas sooner using a more agile product methodology. This will minimize time, cost and effort wasted on unproven potential failures to which you will become increasingly attached, especially if you’re personally accountable for their success.
Take 15 mins for mindfulness practice - focusing on the present moment and less on the past and future - to increase your resistance to the Sunk Cost bias. (Hafenbrack et al., 2013). Check out the Headspace app.
• Morals are driven by 5 factors (2008) Though ever-evolving over time and different according to culture, Pinker states that what is seen as morally-acceptable is governed by our needs for fair Reciprocity, Community belonging, adherence to some form of Authority, Aversion to Risk and avoidance of harm to others.
• Imagery is incredibly powerful for cognition (1986) In Steven’s words “We are visual creatures. Visual things stay put, whereas sounds fade.” His award-winning research into visual cognition teaches us how it works and points towards the power of the Picture Superiority Effect.
“All of the violence that doesn’t occur doesn’t get reported on the news.”
- Pinker (2018) Enlightenment Now
• We believe things are much worse than evidence suggests (2018) In his 2018 book, Enlightenment Now, he targets common misconceptions about violence and inequality in modern society, showing that these false beliefs are a result of the Availability Bias. Quantitative evidence shows how wealth has increased around the globe, while poverty and violence have both decreased.
• We're different, and that's okay... (2012) In The Blank Slate, he argues that some human characteristics are pre-defined by our genes. For instance, he states that there are visible differences between the brains of men and women, citing research that men are less Risk Averse and are better at conceptualizing 3D objects. Similarly, women are much better at spelling and reading body language and facial expressions.
• Morals are driven by 5 factors (2008) Though ever-evolving over time and different according to culture, Pinker states that what is seen as morally-acceptable is governed by our needs for fair Reciprocity, Community belonging, adherence to some form of Authority, Aversion to Risk and avoidance of harm to others.
• Imagery is incredibly powerful for cognition (1986) In Steven’s words “We are visual creatures. Visual things stay put, whereas sounds fade.” His award-winning research into visual cognition teaches us how it works and points towards the power of the Picture Superiority Effect.
“All of the violence that doesn’t occur doesn’t get reported on the news.”
- Pinker (2018) Enlightenment Now
• We believe things are much worse than evidence suggests (2018) In his 2018 book, Enlightenment Now, he targets common misconceptions about violence and inequality in modern society, showing that these false beliefs are a result of the Availability Bias. Quantitative evidence shows how wealth has increased around the globe, while poverty and violence have both decreased.
• We're different, and that's okay... (2012) In The Blank Slate, he argues that some human characteristics are pre-defined by our genes. For instance, he states that there are visible differences between the brains of men and women, citing research that men are less Risk Averse and are better at conceptualizing 3D objects. Similarly, women are much better at spelling and reading body language and facial expressions.
• The Afterlife Effect states that if people are more explicitly shown what the products they are being asked to recycle will become, they will recycle more.
• It's driven by a mix of inspiration, a short story being told and a sense of closure from feedback as to what will happen if they choose to recycle.
• Producers should invest more time in closing this narrative loop to create the aha moment that compels people to recycle.
• The Afterlife Effect can be used to drive new circular economy partnerships and even rewards for the most environmentally-conscious consumers.
Did you know that since plastic was invented in 1907, a staggering 91% of the 8.3bn tonnes produced since has not been recycled (Geyer, Jambeck, and Law 2017)?
It's true that certain companies such as PepsiCo and Evian have already committed to 100%-recycled manufacture by 2020 and 2025, respectively. But more generally, we're still a long way off; plastics recycling actually fell in recent years from 9.5 to 9.1% (U.S. Environmental Protection Agency [EPA] 2018a).
How then might we use our understanding of behavioral economics to improve the policies of government, industries and companies and speed up this process?
So far, a lot of behavioral research has been done on the more negative side of persuasive messaging to affect decisions to recycle (Bilandzic, Kalch, and Soentgen, 2017) which, though effective on some, can come across as coercive and trigger angry reactance in others, reducing its effectiveness (Griskevicius, Cantu, and Van Vugt 2012).
Despite the doom and gloom that surrounds the bigger question of our collective future, how instead might behavioral economics appeal to a more positive, inspirational side of our decision-making?
Well, some brilliant new research has just been released showing us how. It's called the Afterlife Effect, part of a growing trend of more positive behavioral nudges that you'll start to see a lot more of in future.
The concept
The researchers propose a new, positive way of increasing recycling that focuses on the story of what happens to old products after they've been recycled and what they turn into.
What lies at the core of these stories told? Inspiration, defined as an awareness of a new idea or concept that we didn't know before, so-called "aha moments" ("Oh, so that's what the cups become!"), followed by a new-found motivation to act on it ("That's so cool. It's great to see the impact of my recycling").
This short story provides a powerful, positive and understandable feedback loop as to why we should recycle.
Let's take a look at the research that demonstrates this concept to see the effect on people's recycling.
The research
Study 1 - Showing how a product's afterlife can boost recycling behavior
111 people were split into two core groups (a control and a product afterlife condition) and asked to perform a 'mind-clearing task' of doodling on a sheet of paper.
All were then shown one of three advertisements for product recycling (shown below) and asked to rate it for how likely they'd be to recycle.
They were then asked to clean away their desks, putting their paper either in a recycling container or the trash.
The results fascinatingly showed that those that saw the control with no afterlife information recycled their paper 51% of the time, whereas those in the Afterlife condition recycled 80% of the time! A staggering increase.
Study 2 - Higher click-throughs for ads with product afterlife
The researchers also wanted to see what impact the Afterlife Effect would have on click-throughs on a real advertising campaign.
They worked with clothing company Madewell, who were running a jeans recycling campaign at the time, where old jeans would be turned into household insulation.
Two Google Adwords variants were set up to test to see if the effect held both with and without the Afterlife Effect applied.
After running the campaign for 5 days, the researchers found that click-throughs were significantly higher (26%) for the Afterlife ad over the control (18%), even without any optimization!
The paper lists a further four studies that show the impact of the Afterlife Effect on decision-making.
In summary, given the urgency to act, there is a strong motivation to find new ways to help people to change their environmental consumer behavior.
Using storytelling, feedback loops and triggering inspiration in people can act as a much more positive and powerful motivator for behavior change that won't trigger negative reactions.
• The Afterlife Effect states that if people are more explicitly shown what the products they are being asked to recycle will become, they will recycle more.
• It's driven by a mix of inspiration, a short story being told and a sense of closure from feedback as to what will happen if they choose to recycle.
• Producers should invest more time in closing this narrative loop to create the aha moment that compels people to recycle.
• The Afterlife Effect can be used to drive new circular economy partnerships and even rewards for the most environmentally-conscious consumers.
Did you know that since plastic was invented in 1907, a staggering 91% of the 8.3bn tonnes produced since has not been recycled (Geyer, Jambeck, and Law 2017)?
It's true that certain companies such as PepsiCo and Evian have already committed to 100%-recycled manufacture by 2020 and 2025, respectively. But more generally, we're still a long way off; plastics recycling actually fell in recent years from 9.5 to 9.1% (U.S. Environmental Protection Agency [EPA] 2018a).
How then might we use our understanding of behavioral economics to improve the policies of government, industries and companies and speed up this process?
So far, a lot of behavioral research has been done on the more negative side of persuasive messaging to affect decisions to recycle (Bilandzic, Kalch, and Soentgen, 2017) which, though effective on some, can come across as coercive and trigger angry reactance in others, reducing its effectiveness (Griskevicius, Cantu, and Van Vugt 2012).
Despite the doom and gloom that surrounds the bigger question of our collective future, how instead might behavioral economics appeal to a more positive, inspirational side of our decision-making?
Well, some brilliant new research has just been released showing us how. It's called the Afterlife Effect, part of a growing trend of more positive behavioral nudges that you'll start to see a lot more of in future.
The concept
The researchers propose a new, positive way of increasing recycling that focuses on the story of what happens to old products after they've been recycled and what they turn into.
What lies at the core of these stories told? Inspiration, defined as an awareness of a new idea or concept that we didn't know before, so-called "aha moments" ("Oh, so that's what the cups become!"), followed by a new-found motivation to act on it ("That's so cool. It's great to see the impact of my recycling").
This short story provides a powerful, positive and understandable feedback loop as to why we should recycle.
Let's take a look at the research that demonstrates this concept to see the effect on people's recycling.
The research
Study 1 - Showing how a product's afterlife can boost recycling behavior
111 people were split into two core groups (a control and a product afterlife condition) and asked to perform a 'mind-clearing task' of doodling on a sheet of paper.
All were then shown one of three advertisements for product recycling (shown below) and asked to rate it for how likely they'd be to recycle.
They were then asked to clean away their desks, putting their paper either in a recycling container or the trash.
The results fascinatingly showed that those that saw the control with no afterlife information recycled their paper 51% of the time, whereas those in the Afterlife condition recycled 80% of the time! A staggering increase.
Study 2 - Higher click-throughs for ads with product afterlife
The researchers also wanted to see what impact the Afterlife Effect would have on click-throughs on a real advertising campaign.
They worked with clothing company Madewell, who were running a jeans recycling campaign at the time, where old jeans would be turned into household insulation.
Two Google Adwords variants were set up to test to see if the effect held both with and without the Afterlife Effect applied.
After running the campaign for 5 days, the researchers found that click-throughs were significantly higher (26%) for the Afterlife ad over the control (18%), even without any optimization!
The paper lists a further four studies that show the impact of the Afterlife Effect on decision-making.
In summary, given the urgency to act, there is a strong motivation to find new ways to help people to change their environmental consumer behavior.
Using storytelling, feedback loops and triggering inspiration in people can act as a much more positive and powerful motivator for behavior change that won't trigger negative reactions.
111 people were split into two groups and asked to perform a mind-clearing task of doodling on a sheet of paper.
People who were shown the afterlife information (doodled paper being recycled into a new paper or a guitar) were more likely to recycle their paper than those who were not given this information (control).
Close the loop with a simple, inspiring story.
Consumers value the powerful stories told by products made from recycled material (Kamleitner, Thuerridl, and Martin 2019).
Get people to think about the transformative effects of turning old products into new ones with a story.
For instance, UK retailer Marks & Spencer is now rolling out a scheme where you can recycle any plastic in-store to be turned into shop fixtures and playground equipment for schools. They could use the box to show off the intended afterlife to inspire customers, as shown here.
If you sell a physical product, how can you build in and communicate the story of its afterlife?
Positivity is persuasive!
We are seeing a growing trend away from negative interventions (Moller, Ryan, and Deci 2006) with new research showing that positive, inspirational nudges can be more effective in motivating behavior change!
Although triggering Loss Aversion, for instance, can be effective, you may see greater results with a positive nudge.
How might you use inspirational nudges over negative, shaming ones in an environmental context?
Make it timely.
Organisations and Governments can also do a better job of motivating recycling at the point of disposal with the Afterlife Effect.
Recycling rates will be increased if we can see, at the point of disposal, what our efforts will turn into.
Consider tie-ups with complementary products / brands.
Though Nespresso recycle the aluminium from their coffee pods, they currently have no Afterlife Effect in place.
They could alternatively use recycled materials to make some of the complementary metal-based products on their site and gift them to those with a decent level of recycling.
47 subjects were given around 20 small, manual tasks to complete, one at a time. Experimenters randomly interrupted completion of half of these tasks. After, subjects were asked to recall as many tasks as possible.
There was a 90% higher recall of incomplete and interrupted tasks than those completed.
Make important task completion frictionless. If customers leave your site without finishing their order, make it effortlessly easy to get that completion feeling, such as allowing for completion with a single click, tap or swipe.
Focus on completion’s emotional release. Providing reward incentives for task completion actually demotivates consumers. Instead, remind them not just of the product they’ve not yet bought, but of the feelings that this ‘purchase task’ will unlock.
Make known campaigns incomplete and interactive. Greater familiarity with an advert increases consumer ability to complete an interrupted ad message. Active participation also boosts ad memory (Heller, 1956). So if your popular campaign’s reaching its end, consider a special second follow-up version that allows for active participation in completing the ad message.
300 customers at a car wash were split into two groups and given one of two different loyalty cards for a free wash upon completion: either one with space for 8 stamps or one for 10 (with 2 spaces pre-stamped).
Despite both cards requiring the same amount of effort, completion of the non-pre-stamped 8 card over a 9-month period was only 19% whereas the pre-stamped 10-card was 34%.
Get them started. Endow progress with a fraction of points, stars or a brand-specific measure. Make sure you endow enough to motivate use, aiming for between 10-25% of the total effort required for the first reward. As well as helping with initial effort, make the reward itself substantial and meaningful to assist habit-forming.
Never endow at the end. The closer we are to a goal, the more we value our own internal efforts to complete it. Doing so on their behalf will devalue existing effort, perceived reward value and reduce loyalty strength.
Make it seamless.In Christmas 2013, 1 in 8 Americans got a Starbucks Gift Card. On redemption they were automatically endowed with progress in the form of loyalty stars, creating 1.5m new loyalty members as a result. How can you seamlessly channel gift customers through to your loyalty scheme?
733 new employees of a health company used a single opt-in process to subscribe to a retirement plan. Results were compared to a multi-step phone process used with 455 and 407 employees from the two previous years.
Participation rates were 5% after one month and 8% after three months. With the new process, they rose to 19% and 35% respectively.
Perform a friction audit.
Identify all the hurdles and delays your user may feel while using your product and attempt to minimise them. How many barriers to a near-effortless user experience can you find?
Adding friction can help people from making mistakes.
Add barriers to counter System 1 mode, prompting users for conscious reflection to validate important information (e.g. monetary transactions). What strategic friction can you create?
Add friction to make waiting times feel shorter.
Houston airport reduced the number of luggage waiting times complaints by moving the luggage area further away so that passengers spent more time walking and less time waiting.
Remove friction but highlight effort.
Our willingness to pay for something increases by knowing how much work is done for us. We pay more for a cup of coffee if we see the barista working on it for several minutes.
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