Nudge

“These two words increased sales by 18%.” Robert Cialdini

16 years ago a chain of Chinese restaurants wanted to increase sales without changing the price.  They didn’t change the product.  The service.  The chef.  The food.  Instead, they changed two words on their menu and increased sales by 18%.  The restaurants used the advice of today’s guest on Nudge, Robert Cialdini.  Today, Cialdini explains the social proof principle, sharing how changing just two words could increase your sales. ---  Unlock the Nudge Vaults: https://www.nudgepodcast.com/vaults Read Cialdini’s bestseller Influence: https://amzn.to/4prHb7Y Read the new and expanded Influence: https://amzn.to/43TY0jI Read Pre-Suasion: https://amzn.to/48hA6Qr  Read Yes! (Containing 60 Psyc-Marketing Tips): https://amzn.to/48ddNNf  Join 10,428 readers of my newsletter: https://www.nudgepodcast.com/mailing-list  Connect on LinkedIn: https://www.linkedin.com/in/phill-agnew/  ---  Today’s sources:  Aune, R. K., & Basil, M. D. (1994). A relational-obligations approach to fund-raising: The effects of guilt and credibility appeals on compliance. Communication Research, 21(4), 486–498. Binning, K. R., Kaufmann, N., McGreevy, E. M., Fotuhi, O., Chen, S., Marshman, E., Kalender, Z. Y., Limeri, L. B., Betancur, L., & Singh, C. (2020). Changing social contexts to foster equity in college science courses: An ecological-belonging intervention. Psychological Science, 31(9), 1059–1070. Boh, W. F., & Wong, S.-S. (2015). Managers versus co-workers as referents: Comparing social influence effects on within- and outside-subsidiary knowledge sharing. Organizational Behavior and Human Decision Processes, 126, 1–17. Borman, G. D., Rozek, C. S., Hanselman, P., & Destin, M. (2019). Reappraising academic and social adversity improves middle school students’ academic achievement, behavior, and well-being. Proceedings of the National Academy of Sciences of the United States of America, 116(33), 16286–16291. Cai, H., Chen, Y., & Fang, H. (2009). Observational learning: Evidence from a randomized natural field experiment. American Economic Review, 99(3), 864–882. Frank, R. H. (2020). Under the influence: Putting peer pressure to work. Princeton University Press. Goldstein, N. J., Cialdini, R. B., & Griskevicius, V. (2008). A room with a viewpoint: Using social norms to motivate environmental conservation in hotels. Journal of Consumer Research, 35(3), 472–482. Hallsworth, M., List, J. A., Metcalfe, R. D., & Vlaev, I. (2017). The behavioralist as tax collector: Using natural field experiments to enhance tax compliance. Journal of Public Economics, 148, 14–31. Jung, J., Busching, R., & Krahé, B. (2019). Catching aggression from one’s peers: A longitudinal and multilevel analysis. Social and Personality Psychology Compass, 13(4), e12440. Linder, J. A., Meeker, D., Fox, C. R., Friedberg, M. W., Persell, S. D., Goldstein, N. J., Knight, T. K., Hay, J. W., & Doctor, J. N. (2017). Durability of benefits of behavioral interventions on inappropriate antibiotic prescribing in primary care: Follow-up from a cluster randomized clinical trial. JAMA, 318(14), 1391–1392. Meeker, D., Linder, J. A., Fox, C. R., Friedberg, M. W., Persell, S. D., Goldstein, N. J., Knight, T. K., Hay, J. W., & Doctor, J. N. (2016). Effect of behavioral interventions on inappropriate antibiotic prescribing among primary care practices: A randomized clinical trial. JAMA, 315(6), 562–570. Murrar, S., Campbell, M. R., & Brauer, M. (2020). Exposure to peers’ pro-diversity attitudes increases inclusion and reduces the achievement gap. Nature Human Behaviour, 4(9), 889–897. Nolan, J. M. (2021). Social norm interventions as a tool for pro-climate change. Current Opinion in Psychology, 42, 120–125. Peterson, R. A., Kim, Y., & Jeong, J. (2020). Out-of-stock, sold out, or unavailable? Framing a product outage in online retailing. Psychology & Marketing, 37(4), 535–547.

When you can’t stop seeing the thing you’ve just discovered

I watched Home Alone and suddenly started hearing the theme tune everywhere.  I thought I was going insane.  But Tom Bowden-Green and Luan Wise explained that I actually fell for a fairly well-known bias.  A bias you’ve almost certainly experienced as well.  ---  Come to Uplift Live: https://uplift-live.com/ (Use code NUDGE to get £50 off)  Tom and Luan’s book: https://amzn.to/49aZnh3 Unlock the Nudge Vaults: https://www.nudgepodcast.com/vaults Join 10,428 readers of my newsletter: https://www.nudgepodcast.com/mailing-list  Connect on LinkedIn: https://www.linkedin.com/in/phill-agnew/  ---  Today’s sources:  Costello, J. P., Garvey, A. M., Germann, F., & Wilkie, J. E. B. (2024). The Uptrend Effect: Encouraging healthy behaviors through greater inferred normativity. Journal of Marketing Research, 61(1), 110–127. Cruz, R. E., Leonhardt, J. M., & Pezzuti, T. (2017). Second person pronouns enhance consumer involvement and brand attitude. Journal of Interactive Marketing, 39(1), 104–116. Khan, U., & Dhar, R. (2006). Licensing effect in consumer choice. Journal of Marketing Research, 43(2), 259–266. Lim, S., van Osselaer, S. M., Goodman, J. K., Fuchs, C., & Schreier, M. (2024). The Starbucks effect: When name-based order identification increases customers’ store preference and service satisfaction. Journal of Retailing, 100(2), 316–329. Sahni, N. S., Wheeler, S. C., & Chintagunta, P. (2018). Personalization in email marketing: The role of noninformative advertising content. Marketing Science, 37(2), 236–258. Van Boven, L., Dunning, D., & Loewenstein, G. (2000). Egocentric empathy gaps between owners and buyers: Misperceptions of the endowment effect. Journal of Personality and Social Psychology, 79(1), 66–76. van der Meulen, M. (2022). Are we indeed so illuded? Recency and frequency illusions in Dutch prescriptivism. Languages, 7(1), 42. Zwicky, A. (2006). Why are we so illuded. Retrieved from https://web.stanford.edu/~zwicky/LSA07illude.abst.pdf

The Psych-Trick Behind One of the Decade’s Fastest Growing Orgs

HelloFresh is one of the fastest-growing companies of the past 20 years.  And it’s down to one, relatively simple behavioural science tactic.  --- Subscribe to the Nudge Vaults: https://www.nudgepodcast.com/vaults See Agent Spark in action at ⁠gwi.com/spark⁠ Read Mehdi’s book: https://amzn.to/48ORuO2  Here's Medhi's website: https://tinyurl.com/ymnu6jty Sign up for my newsletter: https://www.nudgepodcast.com/mailing-list Connect on LinkedIn: https://www.linkedin.com/in/phill-agnew/ Watch Nudge on YouTube: https://www.youtube.com/@nudgepodcast/  --- Today’s sources: Buechel, E., & Li, R. (2022). Mysterious consumption: Preference for horizontal (vs. vertical) uncertainty and the role of surprise. Journal of Consumer Research, 49(6), 987–1004. Norton, M. I., Mochon, D., & Ariely, D. (2012). The IKEA effect: When labor leads to love. Journal of Consumer Psychology, 22(3), 453–460. Skinner, B. F. (1948). “Superstition” in the pigeon. Journal of Experimental Psychology, 38(2), 168–172. BBC News. (2015, August 12). The man who discovered Harry Potter [Video]. YouTube Melanie Wass. (2019, September 16). J.K. Rowling – Insights on creating Harry Potter world [Video]. YouTube.

Real-world examples of cognitive biases

Most of us are completely oblivious to the cognitive biases that dictate how we live our lives.  Today, with Tom Bowden-Green and Luan Wise, we cover seven cognitive biases that all of us fall for.  ---  Tom and Luan’s book: https://amzn.to/49aZnh3 Unlock the Nudge Vaults: https://www.nudgepodcast.com/vaults See Agent Spark in action at ⁠gwi.com/spark⁠ Join 10,428 readers of my newsletter: https://www.nudgepodcast.com/mailing-list  Connect on LinkedIn: https://www.linkedin.com/in/phill-agnew/  ---  Today’s sources:  Chambers, J. R. (2008). Explaining false uniqueness: Why we are both better and worse than others. Social and Personality Psychology Compass, 2(2), 878–894. Dunning, D. (2011). The Dunning–Kruger effect: On being ignorant of one’s own ignorance. In Advances in experimental social psychology (Vol. 44, pp. 247–296). Academic Press. Einhorn, H. J., & Hogarth, R. M. (1978). Confidence in judgment: Persistence of the illusion of validity. Psychological Review, 85(5), 395–416. Helmreich, R., Aronson, E., & LeFan, J. (1970). To err is humanizing sometimes: Effects of self-esteem, competence, and a pratfall on interpersonal attraction. Journal of Personality and Social Psychology, 16(2), 259–264. Koskie, M. M., & Locander, W. B. (2023). Cool brands and hot attachments: Their effect on consumers’ willingness to pay more. European Journal of Marketing, 57(4), 905–929. Pronin, E., Lin, D. Y., & Ross, L. (2002). The bias blind spot: Perceptions of bias in self versus others. Personality and Social Psychology Bulletin, 28(3), 369–381. Van Hoorens, V. (1993). Self-enhancement and superiority biases in social comparison. European Review of Social Psychology, 4, 113–139. White, G. L., Fishbein, M., & Rutstein, R. C. (1981). Passionate love and the misattribution of arousal. Journal of Personality and Social Psychology, 41(1), 56–62.

“This common pricing strategy is completely wrong!” Robert Cialdini

“Say you’ve calculated your price and it comes out at £120,121.  Most would round it down to £120,000.  That’s completely wrong.”  That’s what Robert Cialdini told me on the latest episode of Nudge.  He also explained why the Prime energy drink first succeeded and then flopped.  How Disney kept us hooked on classic movies.  And how he applies the authority bias to sell his own products.  ---  Unlock the Nudge Vaults: https://www.nudgepodcast.com/vaults See Agent Spark in action at ⁠gwi.com/spark⁠ Read Cialdini’s bestseller Influence: https://amzn.to/4prHb7Y Read the new and expanded Influence: https://amzn.to/43TY0jI Read Pre-Suasion: https://amzn.to/48hA6Qr  Read Yes! (Containing 60 Psyc-Marketing Tips): https://amzn.to/48ddNNf  Join 10,226 readers of my newsletter: https://www.nudgepodcast.com/mailing-list  Connect on LinkedIn: https://www.linkedin.com/in/phill-agnew/  --- Today’s sources:  Cialdini, R. B. (2021). Influence: The psychology of persuasion (New & expanded ed.). Harper Business. Dunn, E. W., & Norton, M. I. (2013). Happy money: The science of happier spending. Simon & Schuster. Nelissen, R. M. A., & Meijers, M. H. C. (2011). Social benefits of luxury brands as costly signals of wealth and status. Evolution and Human Behavior, 32(5), 343–355. West, S. G. (1975). Increasing the attractiveness of college cafeteria food: A reactance theory perspective. Journal of Applied Psychology, 60(5), 656–658. Wilson, P. R. (1968). Perceptual distortion of height as a function of ascribed academic status. Journal of Social Psychology, 74(1), 97–102. Worchel, S., Lee, J., & Adewole, A. (1975). Effects of scarcity on value perception: The cookie-jar study. Journal of Personality and Social Psychology, 31(5), 791–799.