Market segmentation is a valuable strategic tool in marketing. How to properly do segmentation is, however, not widely known. In this article, I lay out the principles of segmentation and provide a step-by-step guide.
Experiments (aka A/B tests) are the bread and butter of behavioral scientists. However, running experiments requires much more than knowing statistics, especially when you’re running “field” experiments and not purely digital ones. In this post, I’ll give you four recommendations to get your experiment right.
Trust in government and election confidence rates have continued to decline in the US. Research indicates that employing operational transparency could be a potential solution. Using these insights, we tested how transparency prompts impact trust in the mail-in voting election process. Higher-level transparency regarding the mail-in voting process was most effective and can be easily scaled by election administration to build trust in these processes.
Technology has become a relevant asset for scientists supporting people in modifying their behavior. For instance, we find various apps on the market trying to achieve this. Some inspire their designs in psychological theories, but most do not. Creating theory-based app designs provides a guide on which people's behavioral outcomes to expect in response to a particular stimulus, leading to more robust design and effective apps. How to begin designing theory-informed apps? Continue reading to find out!
When it comes to nudging, it’s very much a case of ‘different strokes for different folks'. A free donut might entice some people to take a vaccine; for others, it might make them even more skeptical. Fortunately, a combination of digital footprints and ‘thin slicing’ psychology means that nudges can now be targeted to the right people in the right way.
In behavioural science, context is everything. Behavioural Science Aotearoa (BSA) works across the justice sector in New Zealand, where indigenous Māori people make up almost 17% of the population. We combined behavioural science with Māori cultural principles to encourage people to clear their Warrants to Arrest by voluntarily appearing at court. Working with New Zealand Police, we designed and tested a phone-based initiative and found promising evidence for its success.
The most successful products of the digital revolution, principally those with social media components, have mirrored and exaggerated our ancient mental response mechanisms. With the coming metaverse and ‘web3’, psycho junk food supernormal stimuli may be about to take the exploitation of our Stone Age minds to a frightening next level.
There have never been more options to choose from when paying. Under conventional Economics assumptions, this should not make a difference in either decision-making or outcomes. According to behavioral economics, however, the payment method chosen does impact (financial) decision-making and its possible outcomes. In this article we dive into the impact a payment method can have on financial decision-making.
The research literature on nudge effectiveness is growing. 2022 started with a new PNAS article reporting a meta analysis of 455 effect sizes from 214 publications. Here's a short summary.
Prospect theory proposes that when making decisions people use a reference point to frame prospective alternative outcomes as either potential gains or losses; when considering prospective gains, they are risk-averse and prefer certainty, but when considering prospective losses, they are risk-prone and prefer to risk the possibility of larger but uncertain losses. However, when setting prices people make decisions that contradict prospect theory: they are risk prone when cutting prices with the prospect of revenue gains, and risk averse when raising prices that they associate with perceived revenue losses.
