Psychological Principles
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1 5 Psychological Principles OF All material No unauthorised reproduction or distribution.
2 All material No unauthorised reproduction or distribution.
3 NATHALIE TheWebPsychologist.com All material No unauthorised reproduction or distribution.
4 1 ENDOWED PROGRESS All material No unauthorised reproduction or distribution.
5 1 THE RESEARCH Randomly distributed 300 loyalty cards to customers at a car wash Nunes, J. C., & Drèze, X. (2006). The endowed progress effect: How artificial advancement increases effort. Journal of Consumer Research, 32(4), All material No unauthorised reproduction or distribution.
6 1 HALF GOT THIS Collect 8 stamps, get 1 FREE car wash Nunes, J. C., & Drèze, X. (2006). The endowed progress effect: How artificial advancement increases effort. Journal of Consumer Research, 32(4), All material No unauthorised reproduction or distribution.
7 1 THE OTHER HALF GOT THIS Collect 10 stamps, get 1 FREE car wash Nunes, J. C., & Drèze, X. (2006). The endowed progress effect: How artificial advancement increases effort. Journal of Consumer Research, 32(4), All material No unauthorised reproduction or distribution.
8 1 Which had the highest redemption rate? All material No unauthorised reproduction or distribution.
9 1 8 STAMPS? Collect 8 stamps, get 1 FREE car wash Nunes, J. C., & Drèze, X. (2006). The endowed progress effect: How artificial advancement increases effort. Journal of Consumer Research, 32(4), All material No unauthorised reproduction or distribution.
10 1 10 STAMPS? Collect 10 stamps, get 1 FREE car wash Nunes, J. C., & Drèze, X. (2006). The endowed progress effect: How artificial advancement increases effort. Journal of Consumer Research, 32(4), All material No unauthorised reproduction or distribution.
11 1 RESULTS 34% Redemption rate 19% 8 stamps 10 stamps All material No unauthorised reproduction or distribution.
12 1 RESULTS 34% Redemption rate 19% 8 stamps 10 stamps All material No unauthorised reproduction or distribution.
13 1 WHAT HAPPENED? Task requiring 8 steps Nunes, J. C., & Drèze, X. (2006). The endowed progress effect: How artificial advancement increases effort. Journal of Consumer Research, 32(4), All material No unauthorised reproduction or distribution.
14 1 WHAT HAPPENED? Task requiring 8 steps Task requiring 10 steps (2 completed) Nunes, J. C., & Drèze, X. (2006). The endowed progress effect: How artificial advancement increases effort. Journal of Consumer Research, 32(4), All material No unauthorised reproduction or distribution.
15 1 WHAT HAPPENED? Reframed the task so one was perceived as undertaken & incomplete (rather than not yet begun) Nunes, J. C., & Drèze, X. (2006). The endowed progress effect: How artificial advancement increases effort. Journal of Consumer Research, 32(4), All material No unauthorised reproduction or distribution.
16 1 All material No unauthorised reproduction or distribution.
17 How does it work? All material No unauthorised reproduction or distribution.
18 1 ENDOWED PROGRESS All material No unauthorised reproduction or distribution.
19 1 People provided with artificial advancement toward a goal exhibit greater persistence toward reaching that goal Nunes, J. C., & Drèze, X. (2006). The endowed progress effect: How artificial advancement increases effort. Journal of Consumer Research, 32(4), All material No unauthorised reproduction or distribution.
20 1 CONSISTENCY We re naturally motivated to complete tasks we ve started & want to remain consistent with previous intentions Fox, S. & Hoffman, M. (2002). Escalation Behavior as a Specific Case of Goal-Directed Activity: A Persistence Paradigm. Basic and Applied Social Psychology, 24 (4), All material No unauthorised reproduction or distribution.
21 1 PROXIMITY The closer we are to completing a goal the more likely we are to increase our efforts to close the last little gap Hull, C. L. (1932). The goal-gradient hypothesis and maze learning. Psychological Review, 39(1), 25. All material No unauthorised reproduction or distribution.
22 1 TRIGGERS Giving people a couple of free holes on a punch card is enough to trigger both of these effects All material No unauthorised reproduction or distribution.
23 1 WHY IT S USEFUL Increases the likelihood of task completion Nunes, J. C., & Drèze, X. (2006). The endowed progress effect: How artificial advancement increases effort. Journal of Consumer Research, 32(4), All material No unauthorised reproduction or distribution.
24 1 WHY IT S USEFUL Increases the likelihood of task completion Decreases completion time Nunes, J. C., & Drèze, X. (2006). The endowed progress effect: How artificial advancement increases effort. Journal of Consumer Research, 32(4), All material No unauthorised reproduction or distribution.
25 1 WHY IT S USEFUL Increases the likelihood of task completion Decreases completion time Effect depends on perception of task completion rather than a desire to avoid wasting the endowed progress Nunes, J. C., & Drèze, X. (2006). The endowed progress effect: How artificial advancement increases effort. Journal of Consumer Research, 32(4), All material No unauthorised reproduction or distribution.
26 & All material No unauthorised reproduction or distribution.
27 1 IN REALITY Losses loom larger than gains Kahneman, D., & Tversky, A. (1984). Choices, values, and frames. American Psychologist, 39(4), 341. All material No unauthorised reproduction or distribution.
28 1 THIS MEANS We feel a greater loss over something we own than something we haven t yet bought Kahneman, D., Knetsch, J. L., & Thaler, R. H. (1991). Anomalies: The endowment effect, loss aversion, and status quo bias. The Journal Of Economic Perspectives, All material No unauthorised reproduction or distribution.
29 1 All material No unauthorised reproduction or distribution.
30 This also works in gaming All material No unauthorised reproduction or distribution.
31 2 Sunk-cost fallacy All material No unauthorised reproduction or distribution.
32 2 GAMING Players are more likely to return to look after items they have been endowed (paid for / earned) than goods they have simply been given Kahneman, D., Knetsch, J. L., & Thaler, R. H. (1991). Anomalies: The endowment effect, loss aversion, and status quo bias. The Journal Of Economic Perspectives, All material No unauthorised reproduction or distribution.
33 2 SUNK-COST FALLACY Rational player: Arkes, H. R., & Blumer, C. (1985). The psychology of sunk cost. Organizational Behavior And Human Decision Processes, 35(1), Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica: Journal of the Econometric Society, All material No unauthorised reproduction or distribution.
34 2 SUNK-COST FALLACY Rational player: would ignore sunk-costs Arkes, H. R., & Blumer, C. (1985). The psychology of sunk cost. Organizational Behavior And Human Decision Processes, 35(1), Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica: Journal of the Econometric Society, All material No unauthorised reproduction or distribution.
35 2 SUNK-COST FALLACY Rational player: would ignore sunk-costs Real player: Arkes, H. R., & Blumer, C. (1985). The psychology of sunk cost. Organizational Behavior And Human Decision Processes, 35(1), Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica: Journal of the Econometric Society, All material No unauthorised reproduction or distribution.
36 2 SUNK-COST FALLACY Rational player: would ignore sunk-costs Real player: reluctant to discontinue an activity once they ve already put effort in Arkes, H. R., & Blumer, C. (1985). The psychology of sunk cost. Organizational Behavior And Human Decision Processes, 35(1), Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica: Journal of the Econometric Society, All material No unauthorised reproduction or distribution.
37 Which is why this works All material No unauthorised reproduction or distribution.
38 2 All material No unauthorised reproduction or distribution.
39 2 SUNK-COST FALLACY The sunk-cost of planting the tomatoes increases your desire to continue the game Arkes, H. R., & Blumer, C. (1985). The psychology of sunk cost. Organizational Behavior And Human Decision Processes, 35(1), Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica: Journal of the Econometric Society, All material No unauthorised reproduction or distribution.
40 This gives rise to yet another dynamic All material No unauthorised reproduction or distribution.
41 3 Appointment dynamic All material No unauthorised reproduction or distribution.
42 3 APPOINTMENT DYNAMIC At a predetermined time / place user must login or participate in the game for positive effect All material No unauthorised reproduction or distribution.
43 3 APPOINTMENT DYNAMIC This keeps the customer coming back for more, creating a habitual pattern of use All material No unauthorised reproduction or distribution.
44 How these work together All material No unauthorised reproduction or distribution.
45 Endowed progress Customer is helped to begin All material No unauthorised reproduction or distribution.
46 Endowed progress Customer is helped to begin Consistency Initial intention fuels desire to complete All material No unauthorised reproduction or distribution.
47 Endowed progress Customer is helped to begin Consistency Initial intention fuels desire to complete Sunk-cost fallacy Encourages further investment All material No unauthorised reproduction or distribution.
48 Endowed progress Customer is helped to begin Appointment dynamic Habitual use is reinforced Consistency Initial intention fuels desire to complete Sunk-cost fallacy Encourages further investment All material No unauthorised reproduction or distribution.
49 HOW TO USE IT Research what motivates your users All material No unauthorised reproduction or distribution.
50 HOW TO USE IT Research what motivates your users Give relevant initial progress for free (e.g. points, upgrade, virtual currency / product) All material No unauthorised reproduction or distribution.
51 HOW TO USE IT Research what motivates your users Give relevant initial progress for free (e.g. points, upgrade, virtual currency / product) Use these principles to create a user journey that encourages completion All material No unauthorised reproduction or distribution.
52 4 Opportunity cost All material No unauthorised reproduction or distribution.
53 4 Imagine I give you $100 to spend as you like All material No unauthorised reproduction or distribution.
54 4 Which of the following would you choose? All material No unauthorised reproduction or distribution.
55 4 1 You buy some clothes All material No unauthorised reproduction or distribution.
56 4 1 You buy some clothes 2 You take your friends out for drinks All material No unauthorised reproduction or distribution.
57 4 1 You buy some clothes 2 You take your friends out for drinks 3 You save it for a rainy day All material No unauthorised reproduction or distribution.
58 4 1 You buy some clothes 2 You take your friends out for drinks 3 You save it for a rainy day All material No unauthorised reproduction or distribution.
59 4 1 You buy some clothes 2 You take your friends out for drinks 3 You save it for a rainy day All material No unauthorised reproduction or distribution.
60 4 HOW DID YOU DECIDE? Resources are limited All material No unauthorised reproduction or distribution.
61 4 HOW DID YOU DECIDE? You probably weighed up the value of each alternative and made a decision All material No unauthorised reproduction or distribution.
62 So, the principle All material No unauthorised reproduction or distribution.
63 4 Opportunity cost All material No unauthorised reproduction or distribution.
64 4 Benefits forgone by particular use of resources Palmer, S., & Raftery, J. (1999). Economics notes: Opportunity cost. BMJ: British Medical Journal, 318(7197), All material No unauthorised reproduction or distribution.
65 4 What you re giving up by making that particular choice All material No unauthorised reproduction or distribution.
66 How does it work? All material No unauthorised reproduction or distribution.
67 4 THREE MAIN COSTS 1 Attention All material No unauthorised reproduction or distribution.
68 4 THREE MAIN COSTS 1 Attention 2 Time All material No unauthorised reproduction or distribution.
69 4 THREE MAIN COSTS 1 Attention 2 Time 3 Money All material No unauthorised reproduction or distribution.
70 1 COST OF ATTENTION All material No unauthorised reproduction or distribution.
71 4.1 ATTENTION Attention is limited, increasingly fragmented & highly valued All material No unauthorised reproduction or distribution.
72 So how do you grab & hold attention? All material No unauthorised reproduction or distribution.
73 4.1 ATTENTION Trigger an emotional / arousal response All material No unauthorised reproduction or distribution.
74 4.1 All material No unauthorised reproduction or distribution.
75 4.1 ATTENTION Serve a fundamental human need All material No unauthorised reproduction or distribution.
76 4.1 ATTENTION All material No unauthorised reproduction or distribution.
77 4.1 ATTENTION Create a compelling cycle of variable rewards All material No unauthorised reproduction or distribution.
78 4.1 All material No unauthorised reproduction or distribution.
79 2 COST OF TIME All material No unauthorised reproduction or distribution.
80 4.2 When do you typically use the following products? All material No unauthorised reproduction or distribution.
81 4.2 And why? All material No unauthorised reproduction or distribution.
82 4.2 All material No unauthorised reproduction or distribution.
83 4.2 All material No unauthorised reproduction or distribution.
84 You have to minimize TIME costs All material No unauthorised reproduction or distribution.
85 4.2 MINIMIZE TIME COSTS Do this by understanding: All material No unauthorised reproduction or distribution.
86 4.2 MINIMIZE TIME COSTS Do this by understanding: Your customers incentives for using it All material No unauthorised reproduction or distribution.
87 4.2 INTERNET (APP) USE Nielsen (2014). Tech-or-treat: Consumers are sweet on mobile apps, Q Report. All material No unauthorised reproduction or distribution.
88 4.2 MINIMIZE TIME COSTS Do this by understanding: Your customers incentives for using it Their usage patterns All material No unauthorised reproduction or distribution.
89 4.2 All material No unauthorised reproduction or distribution.
90 4.2 All material No unauthorised reproduction or distribution.
91 4.2 MINIMIZE TIME COSTS Do this by understanding: Your customers incentives for using it Their usage patterns How to target specific time packets All material No unauthorised reproduction or distribution.
92 4.2 All material No unauthorised reproduction or distribution.
93 4.2 All material No unauthorised reproduction or distribution.
94 4.2 All material No unauthorised reproduction or distribution.
95 3 COST OF MONEY All material No unauthorised reproduction or distribution.
96 4.3 How do these products reduce the perceived cost of paying? All material No unauthorised reproduction or distribution.
97 4.3 All material No unauthorised reproduction or distribution.
98 4.3 All material No unauthorised reproduction or distribution.
99 4.3 All material No unauthorised reproduction or distribution.
100 4.3 All material No unauthorised reproduction or distribution.
101 4.3 FREEMIUM They create fun pain by making us wait in real time (e.g. for our city / fortress to be built) BetaBlog (2011). Roger Dickey's Tactics for Game Monetization: All material No unauthorised reproduction or distribution.
102 4.3 FREEMIUM In Sim City, to solve this pain we need to buy bliss But how do we value bliss? All material No unauthorised reproduction or distribution.
103 4 4.3 All material No unauthorised reproduction or distribution.
104 4 4.3 FREEMIUM We can t Instead we have to buy gems (intermediate currency) in exchange for bliss All material No unauthorised reproduction or distribution.
105 4 4.3 FREEMIUM Adding just one intermediate currency between consumers and real money reduces our ability to assess the value of the transaction Gabaix, X., & Laibson, D. (2004). Shrouded attributes and information suppression in competitive markets. National Bureau of Economic Research. All material No unauthorised reproduction or distribution.
106 4 4.3 FREEMIUM Allowing people to earn currency (albeit very slowly) and offering bulk discounts cloaks the true cost of playing All material No unauthorised reproduction or distribution.
107 So, to reduce perceived cost of MONEY All material No unauthorised reproduction or distribution.
108 4 4.3 HOW TO DO IT There has to be fun pain (e.g. waiting) All material No unauthorised reproduction or distribution.
109 4.3 HOW TO DO IT There has to be fun pain (e.g. waiting) Use an intermediate currency All material No unauthorised reproduction or distribution.
110 4.3 HOW TO DO IT There has to be fun pain (e.g. waiting) Use an intermediate currency Allow people to earn currency (albeit very slowly) and offer bulk discounts All material No unauthorised reproduction or distribution.
111 5 Hedonic adaptation All material No unauthorised reproduction or distribution.
112 5 THE RESEARCH Group A 180 second massage (total: 3 mins) Nelson, L. D., & Meyvis, T. (2008). Interrupted consumption: Disrupting adaptation to hedonic experiences. Journal of Marketing Research, 45(6), All material No unauthorised reproduction or distribution.
113 5 THE RESEARCH Group B 80 second massage 20 second break 80 seconds (total: 2 mins 40 secs) Nelson, L. D., & Meyvis, T. (2008). Interrupted consumption: Disrupting adaptation to hedonic experiences. Journal of Marketing Research, 45(6), All material No unauthorised reproduction or distribution.
114 5 Which group do you think would report higher satisfaction, and be willing to pay more for it? All material No unauthorised reproduction or distribution.
115 5 THE RESEARCH Group A 180 second massage (total: 3 mins) Nelson, L. D., & Meyvis, T. (2008). Interrupted consumption: Disrupting adaptation to hedonic experiences. Journal of Marketing Research, 45(6), All material No unauthorised reproduction or distribution.
116 5 THE RESEARCH Group B 80 second massage 20 second break 80 seconds (total: 2 mins 40 secs) Nelson, L. D., & Meyvis, T. (2008). Interrupted consumption: Disrupting adaptation to hedonic experiences. Journal of Marketing Research, 45(6), All material No unauthorised reproduction or distribution.
117 5 Group B (the ones who had a shorter massage & took a break) All material No unauthorised reproduction or distribution.
118 5 Why? All material No unauthorised reproduction or distribution.
119 5 Short break stymied their adaptation to the pleasurable event and reset their appreciation for it All material No unauthorised reproduction or distribution.
120 5 THE RESEARCH Same effect for unpleasant experiences Nelson, L. D., & Meyvis, T. (2008). Interrupted consumption: Disrupting adaptation to hedonic experiences. Journal of Marketing Research, 45(6), All material No unauthorised reproduction or distribution.
121 5 THE RESEARCH Same effect for unpleasant experiences If you take a break, it sucks more Nelson, L. D., & Meyvis, T. (2008). Interrupted consumption: Disrupting adaptation to hedonic experiences. Journal of Marketing Research, 45(6), All material No unauthorised reproduction or distribution.
122 5 This is why bad smells fade the longer you re exposed to them All material No unauthorised reproduction or distribution.
123 It s the same thing with products All material No unauthorised reproduction or distribution.
124 5 All material No unauthorised reproduction or distribution.
125 5 All material No unauthorised reproduction or distribution.
126 5 All material No unauthorised reproduction or distribution.
127 5 HEDONIC ADAPTATION All material No unauthorised reproduction or distribution.
128 5 HEDONIC ADAPTATION All material No unauthorised reproduction or distribution.
129 How does it work? All material No unauthorised reproduction or distribution.
130 5 Hedonic adaptation All material No unauthorised reproduction or distribution.
131 5 People become accustomed to a positive or negative stimulus emotional effects of that stimulus are attenuated over time Lyubomirsky, S. (2011). Hedonic adaptation to positive and negative experiences. Oxford handbook of stress, health, and coping, All material No unauthorised reproduction or distribution.
132 5 Over time, we become de-sensitized or bored of the same thing (features, concepts, rewards) All material No unauthorised reproduction or distribution.
133 So how do we use it? All material No unauthorised reproduction or distribution.
134 5 HOW TO USE IT Update your product frequently All material No unauthorised reproduction or distribution.
135 5 HOW TO USE IT Update your product frequently Change the layout / structure All material No unauthorised reproduction or distribution.
136 5 HOW TO USE IT Update your product frequently Change the layout / structure Alter the user experience All material No unauthorised reproduction or distribution.
137 5 HOW TO USE IT Update your product frequently Change the layout / structure Alter the user experience Make the rewards unpredictable All material No unauthorised reproduction or distribution.
138 KEY TAKEAWAYS All material No unauthorised reproduction or distribution.
139 KEY TAKEAWAYS You have to understand the psychological triggers, biases & motivations that drive your customers All material No unauthorised reproduction or distribution.
140 KEY TAKEAWAYS 1 Endowed progress All material No unauthorised reproduction or distribution.
141 KEY TAKEAWAYS 1 Endowed progress 2 Sunk-cost fallacy All material No unauthorised reproduction or distribution.
142 KEY TAKEAWAYS 1 Endowed progress 2 Sunk-cost fallacy 3 Appointment dynamic All material No unauthorised reproduction or distribution.
143 KEY TAKEAWAYS 1 Endowed progress 2 Sunk-cost fallacy 3 Appointment dynamic 4 Opportunity Cost All material No unauthorised reproduction or distribution.
144 KEY TAKEAWAYS 1 Endowed progress 2 Sunk-cost fallacy 3 Appointment dynamic 4 Opportunity Cost 5 Hedonic adaptation All material No unauthorised reproduction or distribution.
145 BUT There s one crucial point we often forget All material No unauthorised reproduction or distribution.
146 WE ARE ALL THE USER All material No unauthorised reproduction or distribution.
147 PERSUASION CONTINUUM All material No unauthorised reproduction or distribution.
148 PERSUASION CONTINUUM Facilitation All material No unauthorised reproduction or distribution.
149 PERSUASION CONTINUUM Facilitation Coercion All material No unauthorised reproduction or distribution.
150 PERSUASION CONTINUUM Facilitation Persuasion Coercion Manipulation All material No unauthorised reproduction or distribution.
151 INTENTION The difference between persuasion and manipulation is intent Robin Dreeke, Head of the Behavioural Analysis Unit, FBI All material No unauthorised reproduction or distribution.
152 WHERE DO YOU SIT? Facilitation Persuasion Intent Coercion Manipulation All material No unauthorised reproduction or distribution.
153 THE SILVER RULE Do not do unto others what you would not have them do unto you Hillel the Elder in Talmud: Shabbat 31a All material No unauthorised reproduction or distribution.
154 As designers All material No unauthorised reproduction or distribution.
155 You are both the ARCHITECTS & THE USERS of our future tech All material No unauthorised reproduction or distribution.
156 WHAT KIND OF WORLD do you want to build? All material No unauthorised reproduction or distribution.
157 WEBS OF INFLUENCE THE PSYCHOLOGY OF ONLINE PERSUASION bit.ly/websofinfluence All material No unauthorised reproduction or distribution.
158 DOWNLOAD THE SLIDES bit.ly/mtp_persuasion All material No unauthorised reproduction or distribution.
159 ANY QUESTIONS? Get in TheWebPsychologist.com All material No unauthorised reproduction or distribution.
160 REFERENCES & FURTHER READING 1 Meyer, R. (2014). Everything We Know About Facebook's Secret Mood Manipulation Experiment. The Atlantic, June 28 th : 2 Horn, L. Study Finds Chemical Reason Behind Facebook 'Addiction'. PC Mag (2012). Available from (retrieved 17th February 2015) 3 Przybylski, A. K., Murayama, K., DeHaan, C. R., & Gladwell, V. (2013). Motivational, emotional, and behavioral correlates of fear of missing out. Computers in Human Behavior, 29(4), Muise, A., Christofides, E., & Desmarais, S. (2009). More information than you ever wanted: Does Facebook bring out the greeneyed monster of jealousy? CyberPsychology & Behavior, 12(4), Przybylski, A. K., & Weinstein, N. (2013). Can you connect with me now? How the presence of mobile communication technology influences face-to-face conversation quality. Journal of Social and Personal Relationships, 30(3), Bavelier, D., Green, C. S., & Dye, M. W. (2010). Children, wired: for better and for worse. Neuron, 67(5), Harris Interactive (2013). Mobile Consumer Habits Study. Available from: (retrieved 13 th March 2015) All material No unauthorised reproduction or distribution.
161 Harness persuasive technology for good humanisetheweb.com All material No unauthorised reproduction or distribution.
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