On a MissionHave you heard about The Restaurant of Mistaken Orders? No, this is not the latest show streaming on Netflix. It's not an Isabel Allende novel or a short story from Neil Gaiman or an episode of the new Twilight Zone. It's a real thing. Actually, it's a series of pop-up eating experiences in and around Tokyo Japan conceived and produced by Shiro Oguni. The restaurant is staffed entirely by people with dementia and, yes, orders are mixed up all the time. But, the wonderful thing is that people…Keep Reading
Simply the BestA few weeks ago Tina Turner passed away and I cannot tell you how sad this made me…still makes me. I recently shared a story from the early part of my career when I was working a dream job in TV production. (If you missed it, you'll find it here.) During that time, I had the pleasure of meeting many famous and not-so-famous artists from the music industry. For the most part, they were very cool, kind, and collaborative. Some were weird. And some were typical rock stars even if they weren't…Keep Reading
Loss PreventionThe last few weeks I've been deconstructing some very common behaviorial economic tactics that drive consumer perceptions, namely the Decoy Effect, the Anchoring Effect, and the Framing Effect. Each of these is based on a cognitive bias known as loss aversion. As humans, we're wired to avoid loss to a greater degree than we are to acquiring an equal gain. What this means is that we will make decisions that protect us from potential loss out of proportion to what we see as similar potential…Keep Reading
Have You Been Framed?I guess I’m doing a series on the behavioral economic tactics used to influence or change perceptions of price and value as this week we're diving into the Framing Effect. You may recall that last week I discussed the Anchoring Effect and the week before I reviewed the Decoy Effect. So, what is framing? It’s when you actively impact people’s perception of value based on how you’re presenting information about what's on offer. An example might be listing your turkey burgers as being ‘97% lean…Keep Reading
Anchors AwayHi Reader, Ever watch an infomercial and get sucked into believing the amazing deal on offer? I sure have. Remember Richard Simmons’ Deal-a-Meal? How about the Shamwow or Chuck Norris' Total Gym? One of the hallmarks of any infomercial is the infamous and all important question, “How much would you expect to pay,” followed by a list of prices. This technique is all about what's called the Anchoring Effect. As humans, we are deeply influenced by the first piece of information we receive when…Keep Reading
The Decoy PloyHave you ever wondered why the price of a large drink or popcorn at the movie theater is not that much more than the price of a medium? It’s because the medium is a decoy. Its purpose is to change your perception of the value of that large soda or popcorn and drive you to buy it rather than the more economically priced small. This is a perfect example of a pricing tactic called The Decoy Effect. One of the most famous examples of the decoy effect is employed by The Economist magazine. Way…Keep Reading
Have you heard about The Restaurant of Mistaken Orders? No, this is not the latest show streaming on Netflix. It's not an Isabel Allende novel or a short story from Neil Gaiman or an episode of the new Twilight Zone. It's a real thing. Actually, it's a series of pop-up eating experiences in and around Tokyo Japan conceived and produced by Shiro Oguni. The restaurant is staffed entirely by people with dementia and, yes, orders are mixed up all the time. But, the wonderful thing is that people…Keep Reading
A few weeks ago Tina Turner passed away and I cannot tell you how sad this made me…still makes me. I recently shared a story from the early part of my career when I was working a dream job in TV production. (If you missed it, you'll find it here.) During that time, I had the pleasure of meeting many famous and not-so-famous artists from the music industry. For the most part, they were very cool, kind, and collaborative. Some were weird. And some were typical rock stars even if they weren't…Keep Reading
The last few weeks I've been deconstructing some very common behaviorial economic tactics that drive consumer perceptions, namely the Decoy Effect, the Anchoring Effect, and the Framing Effect. Each of these is based on a cognitive bias known as loss aversion. As humans, we're wired to avoid loss to a greater degree than we are to acquiring an equal gain. What this means is that we will make decisions that protect us from potential loss out of proportion to what we see as similar potential…Keep Reading
I guess I’m doing a series on the behavioral economic tactics used to influence or change perceptions of price and value as this week we're diving into the Framing Effect. You may recall that last week I discussed the Anchoring Effect and the week before I reviewed the Decoy Effect. So, what is framing? It’s when you actively impact people’s perception of value based on how you’re presenting information about what's on offer. An example might be listing your turkey burgers as being ‘97% lean…Keep Reading
Hi Reader, Ever watch an infomercial and get sucked into believing the amazing deal on offer? I sure have. Remember Richard Simmons’ Deal-a-Meal? How about the Shamwow or Chuck Norris' Total Gym? One of the hallmarks of any infomercial is the infamous and all important question, “How much would you expect to pay,” followed by a list of prices. This technique is all about what's called the Anchoring Effect. As humans, we are deeply influenced by the first piece of information we receive when…Keep Reading
Have you ever wondered why the price of a large drink or popcorn at the movie theater is not that much more than the price of a medium? It’s because the medium is a decoy. Its purpose is to change your perception of the value of that large soda or popcorn and drive you to buy it rather than the more economically priced small. This is a perfect example of a pricing tactic called The Decoy Effect. One of the most famous examples of the decoy effect is employed by The Economist magazine. Way…Keep Reading