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Irrational behavior
& Social Influence
a small introdution




Chris van den Berg
Business Consultant




          Good Experiences. On Brand. On Budget. | 1
Start with a small test
• Half of the group – close you eyes




                                       Good Experiences. On Brand. On Budget. | 2
Start with a small test
• Other Group




                          Good Experiences. On Brand. On Budget. | 3
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 Good Experiences. On Brand. On Budget.
                                                         Ariely                                   |4
Another Example
• Top level bullet 24 point
 • Second level bullet 20 point
   • Third level bullet 18 point
     — Fourth level (smallest) bullet 16 point




                                                 Good Experiences. On Brand. On Budget. | 5
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 ?!?!?




                                           Good Experiences. On Brand. On Budget. | 6
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




                                                 Good Experiences. On Brand. On Budget. | 7
Anchoring
• Tom Sawyer and the construction of value (Dan Ariely a, George
  Loewenstein, Drazen Prelec)




                                         Good Experiences. On Brand. On Budget. | 8
Zero-Price Model




                   Good Experiences. On Brand. On Budget. | 9
Zero-Price Model
• Top level bullet 24 point
 • Second level bullet 20 point
   • Third level bullet 18 point
     — Fourth level (smallest) bullet 16 point




                                                 Good Experiences. On Brand. On Budget. | 10
Zero-Price Model
• Free … PING!

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




                                           Good Experiences. On Brand. On Budget. | 11
Cola vs Pepsi




                Good Experiences. On Brand. On Budget. | 12
Research on beer




                   Good Experiences. On Brand. On Budget. | 13
Research on beer




                   Good Experiences. On Brand. On Budget. | 14
Outcome




          Good Experiences. On Brand. On Budget. | 15
• 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)




                                         Good Experiences. On Brand. On Budget. | 16
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?




                                          Good Experiences. On Brand. On Budget. | 17
Results




          Good Experiences. On Brand. On Budget. | 18
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)




                                                Good Experiences. On Brand. On Budget. | 19
More on this topic:




                      Good Experiences. On Brand. On Budget. | 20
Social Influence




                   Good Experiences. On Brand. On Budget. | 21
Lift – Candid camera (1962)


• Example:

• http://youtu.be/ltaUpq_26Us




                                Good Experiences. On Brand. On Budget. | 22
Social Influence – Asch Conformity Experiment


• Example:

• http://youtu.be/--NjJygJxPc




                                Good Experiences. On Brand. On Budget. | 23
Towel reuse




              Good Experiences. On Brand. On Budget. | 24
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




                                                  Good Experiences. On Brand. On Budget. | 25
Outcome




          Good Experiences. On Brand. On Budget. | 26
EXP2: Other groups? Better results?




                              Good Experiences. On Brand. On Budget. | 27
More:
• A Room with a Viewpoint: Using Social Norms to Motivate
  Environmental Conservation in Hotels (Goldstein, Noah J.,
  Cialdini, Robert B., Griskevicius, Vladas)




                                         Good Experiences. On Brand. On Budget. | 28
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?




                                            Good Experiences. On Brand. On Budget. | 29
Examples…




            Good Experiences. On Brand. On Budget. | 30
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.”




                                           Good Experiences. On Brand. On Budget. | 31
Outcome




          Good Experiences. On Brand. On Budget. | 32
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




                                          Good Experiences. On Brand. On Budget. | 33
More on this topic




                     Good Experiences. On Brand. On Budget. | 34
The End…
• Will put the presentation on slideshare!




                                             Good Experiences. On Brand. On Budget. | 35

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Irrational behavior & social influence

  • 1. Irrational behavior & Social Influence a small introdution Chris van den Berg Business Consultant Good Experiences. On Brand. On Budget. | 1
  • 2. Start with a small test • Half of the group – close you eyes Good Experiences. On Brand. On Budget. | 2
  • 3. Start with a small test • Other Group Good Experiences. On Brand. On Budget. | 3
  • 4. 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 Good Experiences. On Brand. On Budget. Ariely |4
  • 5. Another Example • Top level bullet 24 point • Second level bullet 20 point • Third level bullet 18 point — Fourth level (smallest) bullet 16 point Good Experiences. On Brand. On Budget. | 5
  • 6. 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 ?!?!? Good Experiences. On Brand. On Budget. | 6
  • 7. 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 Good Experiences. On Brand. On Budget. | 7
  • 8. Anchoring • Tom Sawyer and the construction of value (Dan Ariely a, George Loewenstein, Drazen Prelec) Good Experiences. On Brand. On Budget. | 8
  • 9. Zero-Price Model Good Experiences. On Brand. On Budget. | 9
  • 10. Zero-Price Model • Top level bullet 24 point • Second level bullet 20 point • Third level bullet 18 point — Fourth level (smallest) bullet 16 point Good Experiences. On Brand. On Budget. | 10
  • 11. Zero-Price Model • Free … PING! • More: Zero as a Special Price : The True Value of Free Products, Shampanier, Kristina, Mazar, Nina, Ariely, Dan Good Experiences. On Brand. On Budget. | 11
  • 12. Cola vs Pepsi Good Experiences. On Brand. On Budget. | 12
  • 13. Research on beer Good Experiences. On Brand. On Budget. | 13
  • 14. Research on beer Good Experiences. On Brand. On Budget. | 14
  • 15. Outcome Good Experiences. On Brand. On Budget. | 15
  • 16. • 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) Good Experiences. On Brand. On Budget. | 16
  • 17. 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? Good Experiences. On Brand. On Budget. | 17
  • 18. Results Good Experiences. On Brand. On Budget. | 18
  • 19. 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) Good Experiences. On Brand. On Budget. | 19
  • 20. More on this topic: Good Experiences. On Brand. On Budget. | 20
  • 21. Social Influence Good Experiences. On Brand. On Budget. | 21
  • 22. Lift – Candid camera (1962) • Example: • http://youtu.be/ltaUpq_26Us Good Experiences. On Brand. On Budget. | 22
  • 23. Social Influence – Asch Conformity Experiment • Example: • http://youtu.be/--NjJygJxPc Good Experiences. On Brand. On Budget. | 23
  • 24. Towel reuse Good Experiences. On Brand. On Budget. | 24
  • 25. 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 Good Experiences. On Brand. On Budget. | 25
  • 26. Outcome Good Experiences. On Brand. On Budget. | 26
  • 27. EXP2: Other groups? Better results? Good Experiences. On Brand. On Budget. | 27
  • 28. More: • A Room with a Viewpoint: Using Social Norms to Motivate Environmental Conservation in Hotels (Goldstein, Noah J., Cialdini, Robert B., Griskevicius, Vladas) Good Experiences. On Brand. On Budget. | 28
  • 29. 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? Good Experiences. On Brand. On Budget. | 29
  • 30. Examples… Good Experiences. On Brand. On Budget. | 30
  • 31. 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.” Good Experiences. On Brand. On Budget. | 31
  • 32. Outcome Good Experiences. On Brand. On Budget. | 32
  • 33. 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 Good Experiences. On Brand. On Budget. | 33
  • 34. More on this topic Good Experiences. On Brand. On Budget. | 34
  • 35. The End… • Will put the presentation on slideshare! Good Experiences. On Brand. On Budget. | 35

Hinweis der Redaktion

  1. 1] Wieheeftzo’nstommechineesekalander in huis, waarhangt die? Waaromneem je hem mee2] Nootjes in de bar? Zijn die welzolekker en eetje die danook3] Voelttochreleaxedals het woord FREE er in staat ;-)
  2. Rationeledenkend! Verschil in prijs!
  3. Oude discussie… Beideclaimentewinnen…Onderwelkecondities
  4. Dezekomenjullievolgensmijoveraltegen….