Follow @thebearchitects
The Behavioural Architects
  • Our vision
  • Our people
  • Our capabilities
  • Our offer
  • Our clients
  • Why BE?
  • What is BE?
  • BE in action
  • Quotes & articles
  • Home
  • Who we are
  • What we do
  • Behavioural economics
  • Our intelligence
  • News
  • Blog
  • Contact us
← Older posts

Beyond Nudge

Posted on May 18, 2012 by Liz

Our latest article, published on the Marketing Society blog builds on our recent NewMR talk and looks more closely at the theme ‘Beyond Nudge’ – how we can move beyond the simple executional wins achieved by applying different behavioural economics concepts to using BE strategically to inform our research and methodologies and better understand consumer behaviour and behaviour change.

Posted in BE coverage | Leave a comment

Crawford speaks at NewMR

Posted on April 24, 2012 by Liz

Crawford recently spoke at the 19 April NewMR Behavioural Economics Event on ‘BEyond Nudge: BE inspired strategic frameworks for marketing and market research‘ which looks beyond the easy wins of ‘Nudge’ and at how we can use BE at a more strategic level to structure our research and analysis of consumer behaviour and inspire new methodological research approaches.

Click on the link above for his slides and full audio recording.

Posted in BE coverage, Our News, Presentations | Leave a comment

BE embraces both social and individual influences on behaviour

Posted on April 18, 2012 by Liz

Source: Mindspace 2010

Crawford Hollingworth says the social versus individual debate misses the point about BE in a recent article on the Marketing Society blog.

Behavioural Economics (BE) is inspiring considerable debate and discussion amongst academics, policymakers, think tanks and industries, not least the marketing industry. One strand of thought is that BE is individualistic in its approach and lacking social insight. For example, in October’s Admap Mark Earls and Alex Bentley positioned behavioural economics as follows:

“The newer approaches, such as neuromarketing or behavioural economics, are also essentially individualist – merely new flavours of an old recipe.”

However, the RSA’s 2011 report ‘Transforming Behaviour Change’ seeks to show how behavioural economics allows us to approach behavioural understanding and behavioural change in a holistic way, embracing both social and individual contexts and influences equally:

“We cannot change ourselves without changing each other: Most behaviour change does not occur at the level of the individual alone. Not only do we rely on other people to achieve the changes we seek to make, but such behaviours spread through social diffusion,”

BE frameworks and constructs embrace the importance of social influence. Behavioural economists have identified a raft of cognitive biases that drive consumer behaviour within a given choice architecture or situation. Biases can be further grouped into different categories:

  • Memory biases: such as peak end rule, recognition bias, self-serving bias.
  • Decision-making biases: such as framing, loss aversion, hyperbolic discounting, endowment effect.
  • Probability / belief biases: such as availability bias, primacy effect, optimism bias.
  • Social biases: social conformity bias, status quo bias, in-group bias, authority bias, projection bias, to name but a few.

Some biases fall into more than one camp – for example commitment bias may sometimes act through social networks and peer pressure, while on other occasions it may act on an individual level via technology or via a sense of who we want to be as a person. To read our full article published on the Marketing Society blog, click here

Posted in Biases, Social norms | Leave a comment

New BIT report on reducing fraud, error and debt

Posted on February 24, 2012 by Liz

A new Behavioural Insight Team report came out this month looking at “Applying behavioural insights to reduce fraud, error and debt“. Fraud, error and debt cost the UK economy nearly £40 billion each year. Yet the vast majority of the public do not consciously commit fraud or avoid paying debts, most is down to inertia and procrastination.

The paper is divided into two sections

- one looking at the academic findings for this area.

- The second looks at eight trials set up across the UK in different areas of government emphasising a ‘test, learn, adapt’ approach, collecting reliable, accurate field data to understand the effectiveness of different BE interventions.

Quite a few of the trials have been promising so far. Trial 5 – which involves personalised, named text messages to encourage people to pay court fines – has shown initial success. Final results are out later this Spring. Another trial still underway is one with the DVLA which is using better worded letters and images of the car caught on camera to encourage people to pay their road tax (observer effect and saliency). The letters also use loss aversion with wording like “Pay your tax or lose your [make of car]“. Preliminary results are promising.

 

Posted in BE coverage, Biases | Leave a comment

BE and the inherent weakness of opinion polls

Posted on February 15, 2012 by Liz

The behavioural sciences and BE in particular have informed us about how and why we behave as we do; why we may think one thing vs. another and why we don’t fit the profile of perfect rational economic man. BE has exposed and defined a plethora of cognitive biases which bring alive our tendencies to behave in certain, often irrational ways.  With this in mind, opinion polls can be seen in a different light and explains why we might be advised to treat them with caution, or at the very least with a more critical awareness. Without doubt, companies have already considered many influential elements such as priming and order effects, but there are myriad other potential stumbling blocks and biases to bear in mind.

BE shows that, in general, people are biased towards the status quo and want to follow the crowd.  So if we see an opinion poll showing what the majority thinks, believe or is doing, then in many circumstances, we will have a tendency to follow this norm, to instinctively follow the herd.  What this means is that opinion polls have an element of self-fulfilling prophecy about them making them unreliable. The government has utilised this social norm bias by designing communications which, for example, emphasise the (high) percentage of people ‘in your area’ who have paid their tax or completed their census forms on time. For example, HMRC letters which informed people that the majority of people in their area had already paid their tax and reminded people about the importance of paying tax for their local services outperformed the control group letters (which contained no such information) by around 15%.[1]

There is also another intriguing self-fulfilling prophecy element which has been identified. Research has shown that if you ask someone if they are going to do something and they answer in the affirmative, there is more chance that they will feel compelled to do what they said they would do than if they had not been asked at all. This is what behavioural economists call the commitment bias. It has been demonstrated in a number of studies, in particular where people are asked in telephone surveys whether they intend to vote.[2]

Another very simple cognitive bias which could impact upon opinion polls is the availability bias which shows how people predict the frequency of an event based on how easily an example can be brought to mind. For example, people worry more about being involved in a plane crash when they are flying than they ever fret about being in a car accident while they are driving, because they have a more vivid memory of plane crashes than of car accidents – plane crashes are more easily ‘available’ to them in their memory.  More generally, people are lazy – especially when it comes to answering questionnaires – and in our busy world, tend not to spend a lot of time thinking deeply about such things, and are more likely to be influenced by what first comes to mind.  On the spot responses could be superficial, or based on what respondents think is the more ‘correct’ answer. However, at a later stage with more time to reflect on the issue or when the situation is more private, respondents could produce a different, more genuine viewpoint.

Perhaps the most interesting area of potential influence on opinion polls is the behavioural context in which the questions are asked. A recent session at the 2012 WEF summit in Davos on ‘Designing Better Lives’[3] highlighted how identity can change depending on context. We all have multiple identities – we can be parents, children, students, couch potatoes or marathon runners and our behaviour and opinions can be shaped depending on the context in which questions are asked and answered and by the identity which is in the forefront of our minds at the time. Different contexts can have different mindsets and emotions attached and can prime people in different ways. The session highlighted an example of research which shows that women do less well in exams if they are asked to confirm their gender immediately before starting the exam. So a sharper understanding of the context in which the respondent is answering could be a critical framework for understanding and interpreting responses.

There’s another angle on the impulsivity of response; research has shown that humans have a ‘hot-cold’ empathy gap.  In other words when we are in a ‘cold’ or unemotional state we can be poor predictors of how we might behave when we are in a ‘hot’ or emotional state. Hence consumers or survey participants find it hard to predict their own behaviour even if they want to – context is king!

One way of bringing alive the gap between the hot and cold zones would be to think about your attitudes towards meals you might eat in the coming week and, depending on whether you answer questions relating to this at a satiated (cold) moment versus pre or mid-meal in a restaurant (hot), your expectations might be very different.

Another example of hot-cold empathy gaps was demonstrated in a great study[4] by Dan Ariely and George Loewenstein who found that opinions and predictions of sexual behaviour varied considerably depending on whether an individual was in ‘the heat of the moment’ or not. Test results from male college students on their sexual preferences varied hugely depending on whether they were in a ‘cold, rational, unaroused’ state or, let’s say, a little more excited…. When asked about their sexual preferences in a cold state, the majority stated they would always use a condom, would never consider date rape, were not interested in a threesome, or having underage sex, spanking, tying their partners up, having sex with an animal…. etc. But in a ‘hot, excited’ state, the answers men gave were considerably more adventurous… For example, when asked (in a non-aroused state) if they would like to tie up their partners only 47% answered yes. When aroused, 75% said they would like to do this. And the concept of sex with animals was over twice as appealing in an aroused state as compared to a cold state. Overall, for the 19 questions about sexual preferences, students’ judgments about their predicted sexual behaviour were 72% higher when aroused than they had predicted when they were in a cold state.

So, what with hot and cold states, identity fluctuations, our desire to follow the herd, our love of the status quo and our superficial memory, opinion polls need to be treated with a new level of insight or critical awareness.


[1]UK Cabinet Office, Behavioural Insight Team Annual Update, 2010-2011, published September 2011

[2]Greenwald, Anthony G.; Carnot, Catherine G.; Beach, Rebecca; Young, Barbara “Increasing voting behavior by asking people if they expect to vote.” Journal of Applied Psychology, Vol 72(2), May 1987, 315-318.

[3] http://www.weforum.org/sessions/summary/designing-better-lives

[4]Ariely and Loewenstein’s ‘The Heat of the Moment: The Effect of Sexual Arousal on Sexual Decision Making’, Journal of Behavioral Decision Making J. Behav. Dec. Making, 19: 87–98 (2006)

 

 

Posted in Availability bias, Biases, Commitment bias, Hot & cold zones, Social norms, Status quo bias | Leave a comment

BE inspires new money management tools

Posted on January 27, 2012 by sian
A new money management service called 22seven launched this week in South Africa. The company uses an internet application whereby a subscriber can logon to its system, authorise it to go into his or her bank accounts, store accounts and anywhere where they have to pay, to pull out the relevant information on spending and then do an analysis thereof.
The 22seven website says: “What we’re about it helping people do more with their money. But ultimately, that is about helping people do more with their lives. We use smart information-gathering technology so our users can see all their financial stuff in one place. We’ve applied insights from behavioural economics so our users can better understand the way they think. And by employing principles of play, our users become more engaged and more willingly engaged with their money”.
“Once we understand why we do what we do, then it is far easier for us to correct our actions. We need to understand why we are stupid when it comes to money and so we have designed a service that highlights where common mistakes are made,” says Christo Davel, founder of 22seven.
Another example of behavioural economic being applied to personal finance is Bank Simple, a new online banking service bases its product design on the behavioural economics principles of mental accounting and commitment bias, amongst others. We have also blogged previously about BE inspired tools to help people to save. BE continues to prove itself a rich source of inspiration for new product design.

 

 

 

Posted in BE coverage, Commitment bias | Leave a comment

Behavioural economics at Davos!

Posted on January 23, 2012 by Liz

While some might be excited about the snow… (“In the last 42 years, I have never seen as much snow in Davos” – WEF Chairman Klaus Schwab)… it’s exciting to see how much BE is being covered at WEF at Davos this year, from a number of different aspects:

1) “The Mind and the Machine – What can the latest discoveries  in neuroscience and brain technologies reveal about the human mind and how it functions, and about building  intelligent machines? (Wednesday 25 January)

2) The Future of Economics – What major changes in theory and in practice are driving the rehabilitation of economics? Dimensions to be addressed include thirty years of failed analysis, post-crisis economics, alternative approaches. (Wednesday 25 January)

3) Forging wiser leaders with Harvard University – How can new approaches lead to wiser leadership in decision-making? Idea 1: Shifting from irrational choices to evidence based policy-making and Idea 4: Translating insights from behavioural science into action. (Thursday 26 January)

4) Human Network Dynamics – How is big data being used to uncover individual and collective human dynamics? Dimensions to be addressed – New measurement paradigms, patterns of individual and collective human behaviour, the role of diversity and outliers, societal impact (Thursday 26 January)

5) An Insight, An Idea with Sendhil Mullainathan – A conversation with behavioural economist Sendhil Mullainathan on his breakthrough idea on how technology can improve decision-making. (Friday 27 January)

6) Designing better lives – How can healthy and sustainable lifestyles be promoted? Dimensions to be explored: Understanding the drivers of rational and irrational human behaviour, creating the right incentives to make better choices, using the power of design as an agent for change, influencing behavioural change through media (Saturday 28 January)

There are also sessions on gamification and happiness/well-being.

 

Posted in BE coverage | Leave a comment

The Behavioural Architects merges with Research Essentials, China

Posted on January 12, 2012 by Liz

We are delighted to announce that Research Essentials, China has merged with The Behavioural Architects, London to become The Behavioural Architects, China.

“This merger will allow us to extend our international reach and critically tap into new thinking from the behavioural sciences, in particular Behavioural Economics. Alongside the qualitative and quantitative services we have always offered we’ll provide a range of new research and consultancy services based on BE thinking and frameworks.” Qing Wang, Research Essentials

“Research Essentials is a jewel of a research consultancy working with some of the world’s biggest brands.  Their depth of consumer understanding, strategic ability and ambition to bring new thinking into our discipline is a perfect match for TBA’s culture and global expansion plans.” Crawford Hollingworth, TBA

Qing Wang and Sharon Zhou will be part of the TBA global executive team alongside the three original founders of TBA Sian Davies, Sarah Davies and Crawford Hollingworth.

 

Posted in Our News | Leave a comment

The power of short-cuts to simplify decision making

Posted on November 21, 2011 by sarah

The use of mental short-cuts starts young and as children we quickly learn how to simplify potentially complex decisions.

Nonetheless I was surprised at the accomplished and intuitive use of short-cuts demonstrated by my 7 year old daughter.  She had recently bought a new book at the school book fair and I was asking her if she had chosen the book herself.  Before I even had a chance to ask her ‘why’ she had chosen the book, let alone, ‘how’,  she quickly responded, “Well, I went straight to the recommended books section and I chose it because it had a gold sticker with a Nestlé Smarties book award.”

A great example of visual and verbal heuristics cutting through to readers of all ages!

 

 

 

Posted in Heuristics | Leave a comment

TBA building academic bridges

Posted on November 4, 2011 by Liz

The behavioural sciences and in particular Behavioural Economics are alive with breakthrough studies which provide penetrating insights into why we behave as we do.   We are learning how our brains are full of directional constructs from the cognitive biases, anchors and rules of thumb that we use to shortcut our decision-making and compel us to behave in one way vs. another – it is a great time to be a brain!

In order to take advantage of this rich seam, our industry needs to create more bridges between the academic world and our own.  Our belief is this is very much a two way flow.  Over the last four months we have developed a number of core relationships with universities on both sides of the Atlantic.  We currently have working relationships with graduates and undergraduates in which we train them in applied BE and work with them on projects exploring current and potential choice architecture in different marketing categories.  We are also looking at running co-sponsored BE experiments in which we will explore real client opportunities and challenges together.  Many of our qualitative methodological approaches also involve different experts to deliver new perspectives and fresh insights into behaviour.

Relationships are now established with the following universities:Carnegie Mellon University, University of Michigan, Columbia University, University of California – Berkeley, University of British Columbia, University of Liverpool, University of Nottingham and UCL.

“We are thrilled to have built these relationships with leading universities in the UK and US.  We have concentrated on the decision sciences along with marketing, social and developmental psychology, economics and anthropology – all cross-disciplinary areas which tie into behavioural economics. We are now exploring potential relationships with universities which have relevant courses and research centres in China, India, Australia and South America and will have a global academic network established for 2012.” Crawford Hollingworth, Founder, The Behavioural Architects

 

Posted in Our News | 1 Comment
← Older posts
  • Recent Posts

    • Beyond Nudge
    • Crawford speaks at NewMR
    • BE embraces both social and individual influences on behaviour
    • New BIT report on reducing fraud, error and debt
    • BE and the inherent weakness of opinion polls
  • Category cloud

    Anchors Authority bias Availability bias BE coverage Biases Choice architecture Commitment bias Default bias Diversification bias Fairness bias Framing Heuristics Hot & cold zones Loss aversion Our News Power of now bias Presentations Social networks Social norms Status quo bias Uncategorized
  • Categories

  • Blogroll

    • Art Markman
    • Dan Ariely
    • Grant McCracken
    • Jonah Lehrer
    • Leigh Caldwell
    • Liam Delaney
    • Nudge
    • The Natural Unconscious
  • Archives

    • May 2012
    • April 2012
    • February 2012
    • January 2012
    • November 2011
    • October 2011
    • September 2011
    • August 2011
    • July 2011
    • June 2011
  • Subscribe via RSS
  • Terms & Conditions
  • Privacy
© 2011 The Behavioural Architects | development Open Sussex