Friday, May 11, 2012

Behavioural Economics Twitter Highlights 5 May - 11 May 2012

Sat 5 May - Fri 11 May 2012

Posted weekly by @peoplepatterns, this post contains a summary of tweets noted in the past week that mentioned behavioural/behavioral economics. Where possible, re-tweets and tweets without links been removed to condense the list.


Tweets with Behavioural Economics (UK spelling)

The academic market for senior & junior economists is getting very hot - and behavioural/experimental winning the day




Some projects in Harvard innovation lab might be interesting toBehavioural economics people e.g 
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Great eg! App designed w Dan Ariely using behavioural economicsdrives 76% task completion  behavioral
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The 8 principles of behavior economics, in infographics.
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James Montier: More Realistic Financial Models Incorporating Illiquidity and Leverage Are Needed  


Using a Nudge! Behavioural Economics applied to BehaviouralEconomics  via   
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Behavioural Economics: Common Mistakes in Daily Decisions -
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Good stuff from Tom Ewing on behavioural economics meets market research 
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Tickets still available for  'Living within our means?' - sustainability, behavioural economics and 'nudge'
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Tools from behavioural economics for policy design: "piano stairs", "lazytown", ...   
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 No 10 Behavioural Insights Team uses MINDSPACE framework which is v good and includes 4E model
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Why every biz should know about behavioural economics; consumers are like magnets  (new slide pack)
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DYK? Consumer Credit Reform and Behavioural Economics: Regulating ... 
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Behavioural Economics: From Anecdote to Action on Vimeo
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Behavioural economics without all the buzzwords. Rory Sutherland (excellent, as always), Perspective is everything:
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Did you miss Orlando Wood's webinar on Behavioural Economicslast week? Watch the recording: 
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New post: Behavioural economics booklist on  
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Not Really Sunk with Hollande. France’s new president has an advantage in one important respect.  economics
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This old piece of hers on behavioral economics is a good display of that, and it's brilliant.
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Like Demi and Mariah, your product does have a best side | 
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Myth Buster | The Irrational Visitor: 17 Conversion Optimisation Tips From Behavioural Economics! 
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Nudge theory in action  L6th may enjoy my lecture in exploration week onbehavioural economics! :)
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Like Demi and Mariah, your product does have a best side
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RT : Behavioural Economics applied to BehaviouralEconomics 
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17 Conversion Optimisation Tips From Behavioural Economics :
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Successfully marketing an undesirable product 
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List of the top behavioural economics / investing books Do you think i'm missing any?
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Behavioural economics embraces both social and individual influences on behaviour 
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"I don’t think it’s possible to be a marketer 2012 without having some idea of why people buy" Rory Sutherland, Ogilvy 
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People Patterns: Behavioural Economics Twitter highlights 28 Apr - 4 May 2012 
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Why is online so effective in applying behavioural economicsprinciples re purchase.  
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What can behavioural economics teach us about voting choices? New post on Brian Juicer Blog by  
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Hedonomics - The (Behavioural) Economics of Happiness.
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Tweets with Behavioral Economics (US spelling)

What does the dismal science have to do with the Sweet Science?Behavioral economics and boxing go 12 rounds in...
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 in . Let's get the discussion started at 
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Behavioral economics FTW --> Valve's 'Handbook for New Employees' leaked, hilarious 
Cool profile on one of the fathers of behavioral economics, Richard Thaler 
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Eating Behavior and Obesity - Behavioral Economics Strategies for Health Professionals 
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Great eg! App designed w Dan Ariely using behavioural economicsdrives 76% task completion  behavioral
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James Montier: More Realistic Financial Models Incorporating Illiquidity and Leverage Are Needed  

Behavioral Economics Perspective on Tobacco Taxation 


Applying Behavioral Economics and Cognitive Psychology to the Design Process  

As-if behavioral economics: Neoclassical economics in disguise? | 
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. brings behavioral economics to efficiency in 250,000 New York City Buildings:  | by

 on  

It turns out that multinational corporations do not completely respond to behavioral economics
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A very clever campaign (via  ) - this is behavioraleconomics at its best 
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Behavioral Economics in Other Animals 
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Culture, behavioral economics, and the smart grid. &  nailed it. 
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Why Everyone Wants a Piece of Facebook’s IPO: Insights FromBehavioral Economics  via 
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Why every business should know about behavioral economics; consumers are like magnets  (new...
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Follow-through remains key to behavioral economics - Plans ...
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The amount of publicity Gallup got in India and all over the world based on the Behavioral Economics Forum we org…
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Behavioral economics... Be still my heart! - Rory Sutherland: Perspective is everything  
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Check out recent research and resources on applying behavioraleconomics to asset building programs:
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Simon James: "The contribution of behavioral economics to tax reform in the United Kingdom"
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Use patterns from game design,loyalty programs& behavioraleconomics.Together they’re awesome  

Behavioral Economics in Marketing: 7 Insights to Lift Results
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This old piece of hers on behavioral economics is a good display of that, and it's brilliant.
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Behavioral economics — an overview. It's what happens when psychology & economics have a love child. 
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Applied Behavioral Economics. Scientific yes, but very usefull for management and business problems. 
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Impact of behavioral economics on strategic decisions
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Bestiary of Behavioral Economics/Overconfidence:: : ...
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Bestiary of Behavioral Economics/Ellsberg Paradox:: : ...
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Bestiary of Behavioral Economics/Trust Game: :: : h... 
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Behavioral Economics and the Music Industry
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Where is behavioral economics headed in the world of marketing?, Is  real ethical marketing communication? 
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Like Demi & Mariah your product has a 'better' side. Lessons from the Visual Depiction Effect  behavioraleconomics




Why Everyone Wants a Piece of Facebook’s IPO: Insights FromBehavioral Economics  via 
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If behavioral economics studies how people make imperfect decisions, AF447 shows the need for a behavioral engineering.
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Behavioral economics in immigration policy. Is self-deportation policy based on rational actor model? 
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Winning Methods of the Market Wizard - Jack Schwagger | 
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How Good is Your Intuition? Behavioral Economics and Conversion Optimisation | Myth Buster: Comments:Your brain ...
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Book chapter on "Behavioral Economics" (with George Loewenstein) is available online:  
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How behavioral economics and our lazy brains hurt us in assessing  (HT ) 
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Monday, May 7, 2012

Like Demi and Mariah, your product does have a best side


1. Yogurt ad with spoon on right
Demi does. Mariah does. So does your product have a better side?  Both Demi Moore and Mariah Carey apparently prefer being photographed from their 'better side', and just like them, the way you showcase your product can impact its saleability.  So let's look into the behavioural economics of product orientation.


Imagine you are looking at a magazine ad for a luscious bowl of creamy vanilla yogurt.  Next to the bowl is a spoon.  


Now here's the interesting part. If the spoon is on the right, the ad will be significantly more effective than if the spoon is on the left. And further, an ad with a spoon will outperform one with no spoon at all. Welcome to the Visual Depiction Effect.


The Visual Depiction Effect is the influence the product's orientation has on the customer's propensity to buy, and according to the researchers*,  
"simply orienting a product toward one's dominant (vs. non-dominant hand) in a visual advertisement leads to increases in imagined product use". 

Example ads with spoon
Cool hey?   And of course it's not just yogurt.


Researchers Ryan Elder and Aradhna Krishna used images of yogurt, hamburgers, cake, soup and mugs to test how the orientation of the hand or spoon influences purchase intent, and found that when it matches with the consumer's handedness, intent is heightened.   


What this means for your product
This research has significant implications for how you chose to display your products in advertisements, on websites and even on the shelf.  As a rule of thumb, it suggests you should consider placement to appeal to the right hand side.


Now for left handers this might be hard news to hear but because you represent only around ten percent of the population, your purchase intent might not be the priority...unless of course it's an ad for specialty left handed products and it appears in a left-handed magazine. 


Visual Depiction is more than right or left
What's behind the Visual Depiction Effect?  Well, it's technically not whether the product is positioned to the right or left. What actually drives the reaction is how the depiction stimulates the brain of your customer, and because we tend to operate most of the time at an automatic response level, seeing something that is close to how you would really use it (ie spoon on right) is much easier to absorb than having to reinterpret what to do (ie spoon on left or no spoon at all).  


By extension, this means that if your product tends to be used in the left hand of a right-handed person (eg a fork), you would be better positioning it on the left.  Whilst it was not the subject of Elder and Krishna's research, I would be curious to know how the Visual Depiction Effect applies to products that are used in front of a mirror (eg toothbrush, hairdryer, cosmetics), where the dominant hand and visual memory may be at odds.


So the major take from this research is simple. Showcase your product as it would be used, reducing the amount of interpretation your customer has to do, and helping them imagine themselves interacting with your product.  Tasty.


Interested in finding out more?  Email me at bri@peoplepatterns.com.au for an obligation free chat about your business.



* R. Elder and A. Krishna, "The 'Visual Depiction Effect' in Advertising: Facilitating Embodied Mental Stimulation through Product Orientation", Journal of Consumer Research, Journal of Consumer Research, (April 2012) 988-1003


Note, images of yogurt ads depicted in this articles were not those used in research.


1. Yogurt ad (spoon right) http://www.carastooksberry.com/Oikos
2. Yogurt ad (spoon on left) http://dhdchicago.com/work/advertising/corporate-ad-campaign1/ 
3. Yogurt ad (no spoon) http://healthytemptationsfoods.com/about-healthy-temptations/about.htm
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