Commitment Devices Read online Often we plan to do something and don't. Donating blood, going on a run, watching that webinar. We want to, but forget. This drives marketers insane. People sign up for their events—but no one comes. Katy Milkman, a brilliant professor at the Wharton School at the University of Pennsylvania, found a solution¹. She used a commitment device. Milkman and her colleagues teamed up with a large American utility firm to see if they could prompt more of the company's...
8 days ago • 1 min read
Incentives: Do they work? Read online I've been critical of incentives in the past, citing examples where they backfire. But this¹ incredible 2016 study altered my opinion. Across 63 schools, 10,649 pupils in their final year of GCSEs took part in an experiment. The schools in the study. The students were split into three groups: Control group: these students received no financial incentives Financial rewards: would receive to £320 for attendance, behaviour, classwork and homework...
15 days ago • 1 min read
The Anchoring Effect Read online "𝘚𝘰𝘶𝘵𝘩𝘦𝘯𝘥: 𝘕𝘰𝘵 𝘲𝘶𝘪𝘵𝘦 𝘵𝘩𝘦 𝘔𝘢𝘭𝘥𝘪𝘷𝘦𝘴 𝘣𝘶𝘵 𝘸𝘢𝘳𝘮𝘦𝘳 𝘵𝘩𝘢𝘯 𝘎𝘳𝘪𝘮𝘴𝘣𝘺." Why does this line work? Well, it's due to a great use of the 𝐚𝐧𝐜𝐡𝐨𝐫𝐢𝐧𝐠 𝐞𝐟𝐟𝐞𝐜𝐭. Anchoring = "𝘝𝘢𝘭𝘶𝘦 𝘱𝘦𝘳𝘤𝘦𝘱𝘵𝘪𝘰𝘯 𝘥𝘦𝘱𝘦𝘯𝘥𝘴 𝘰𝘯 𝘸𝘩𝘢𝘵 𝘺𝘰𝘶 𝘢𝘯𝘤𝘩𝘰𝘳 𝘪𝘵 𝘢𝘨𝘢𝘪𝘯𝘴𝘵." In a 2022 study¹, 404 shoppers tested how reference prices affect perceived value. When Ben & Jerry’s ($3.99 for 16oz) was shown next to Walmart’s cheaper $1.99 tub, only 27% rated Ben & Jerry's as great value. But when paired with a costlier $4.99 Halo...
22 days ago • 1 min read
Goal Dilution Effect Read online Keen listeners of Nudge will have heard Richard Shotton explain how Five Guys succeeded because they limited the number of items on their menu. Taken from Shotton's episode in late 2025. They focused on just burgers and chips. That helped them improve and benefit from economies of scale. But it also helped them psychologically, due to the goal dilution effect. Here's why: In a 2007 study by Zhang and Fishbach¹, participants were given information about how...
29 days ago • 1 min read
Pratfall Effect Read online A few months ago on Reddit, someone asked, "Is this the best Black Friday marketing campaign?" Personally, I think it's disingenuous garbage, but clearly, something about this type of ad resonates with some. And it might be because of the first two words. "We're sorry." In 2024¹ a number of researchers from Belgium ran four experiments. They tested what happened when a company apologised for a trivial mistake. In one study, participants were shown an email from a...
about 1 month ago • 1 min read
Price Transparency Read online I spent far too much time moaning about the price of pints. I'd harp on about the £3 ales I used to buy and how they're £5.50 today. And then I saw this image. Taken from The Times based on figures from Ukospitality and the British Beer and Pub association 13p profit!? Suddenly £5 for a pint seems quite reasonable. And there's evidence to prove this price transparency tactic works. In 2020, Harvard researchers¹ tested the effects of showing a product's...
about 1 month ago • 1 min read
Humor Effect Read online Are funny ads actually more 𝒎𝒆𝒎𝒐𝒓𝒂𝒃𝒍𝒆? That's what seven Californian¹ researchers set out to test in 2014. A group of participants were instructed to remember a long list of words. 50% of the participants then waited for 20 minutes in silence. 🤫50% of the participants then watched a funny 20-minute video. 🤣The researchers asked both groups to recall as many words as possible. Those who sat in silence remembered just 20% of the words. 🤫For those who watched the...
about 2 months ago • 1 min read
Barnum Effect Read online Why does the ad on the 𝐫𝐢𝐠𝐡𝐭 capture attention? Well, it might be down to the question.Rohini Ahluwalia and Robert Burnkrant's study¹ in 2004 tested two types of ads. Statement-based ads: "You haven't had a pear in a while."And... Question ads: "When was the last time you had a pear?" The researchers found that ads using questions are rated 14% 𝐦𝐨𝐫𝐞 𝐟𝐚𝐯𝐨𝐮𝐫𝐚𝐛𝐥𝐲 than statement-based ads. So, why not turn your statement into a question? I tested this myself in two...
about 2 months ago • 1 min read
The Country-of-Origin Effect Read online You’re thinking of buying a new pair of running shoes. Usually, you go with Nike. But this time, you’re considering Umbro (a lesser-known brand). Then you find out: Umbro makes their shoes in the UK. Nice. It's always good to find locally made brands. You’re willing to pay a decent price. But the next day, you hear Umbro are moving production to South Korea. Now, would you still pay the same? Probably not. That’s exactly what these researchers¹ found....
2 months ago • 1 min read