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Nudge Newsletter

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Why do fake creams outsell real science? | Nudge Newsletter

Operational Transparency Read online Voltarol is the world's number one pain relief gel. Unlike almost every other gel on the market, Voltarol actually works. Clinical tests have been done to prove that the gel penetrates the skin to supply pain relief. And yet, there are dozens of other very successful paom relief creams that don't supply real pain relief. Take Blue-Emu, an over-the-counter cream with $42 million in annual sales. So, why is Blue-Emu successful in a world where Voltarol...

The Ringelmann Effect Read online In 1882, French engineer Maximilien Ringelmann studied effort.ยน He measured how much weight each man could pull. Individually, the men could pull 85 kg. But in groups of seven, they averaged just 65 kg, a 24% drop. This became known as the Ringelmann Effect. Put simply, it proved that as group size increases, individual effort decreases. Most of us will have seen this in the workplace, typically in bloated meetings where nothing gets done. But it's not...

The Effort Illusion Read online In 2003, two researchersยน proved the illusion of effort. It means we value things more if we believe it took a lot of time to create. Chinander and Schweitzer had groups watch identical presentations. Groups were told one of two things: "This presentation took 8 hours and 34 minutes to prepare." "This presentation took 37 minutes to prepare." Those told the presentation took longer to prep rated it significantly higher. Can I prove this works? On Nudge, I like...

The Nature Effect Read online Are you happier outside? In one 2013 studyยน one million iPhone notifications were sent to 20,000 Brits at various times of day, over a six-month period. The app prompted participants to report their happiness. The app used in the study The phone's GPS determined if the participant was outside or inside. Turns out, those outdoors were much happier. Compared to those inside, participants outside were "significantly and substantially happier", according to the...

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The Framing Effect Read online Many plant-based products are failing due to bad naming. In 2018ยน, a study was conducted with 727 Brits who already ate meat. Renaming the โ€œ๐ฆ๐ž๐š๐ญ-๐Ÿ๐ซ๐ž๐ž ๐›๐ซ๐ž๐š๐ค๐Ÿ๐š๐ฌ๐ญโ€ to โ€œ๐Ÿ๐ข๐ž๐ฅ๐-๐ ๐ซ๐จ๐ฐ๐ง ๐›๐ซ๐ž๐š๐ค๐Ÿ๐š๐ฌ๐ญโ€ made diners 200% more likely to pick the plant-based option. Similarly, renaming โ€œ๐ฆ๐ž๐š๐ญ-๐Ÿ๐ซ๐ž๐ž ๐ฌ๐š๐ฎ๐ฌ๐š๐ ๐ž ๐š๐ง๐ ๐ฆ๐š๐ฌ๐กโ€ as โ€œ๐Ÿ๐ข๐ž๐ฅ๐-๐ ๐ซ๐จ๐ฐ๐ง ๐ฌ๐š๐ฎ๐ฌ๐š๐ ๐ž ๐š๐ง๐ ๐ฆ๐š๐ฌ๐กโ€ made it twice as popular. The paper went on to find that a Veggie Burger will be more popular if itโ€™s called a โ€œ๐‹๐จ๐š๐๐ž๐ ๐๐ฎ๐ซ๐ ๐ž๐ซโ€. And...

The Framing Effect Read online Here's a thought experiment. You've been told you have lung cancer. The doctor asks if you want treatment. She tells you: "68% survive one year after surgery" Hearing this, you'd probably opt for surgery, that's what the majority pickยน. But what if the doctor said: "32% die within one year after surgery" Now, if you're like those in thisยน study, you'd be less likely to choose surgery. It's the same odds of survival. But the wording changed behaviour. This is the...

Target Timely Moments Read online Want someone to adopt a new habit? Contact them after a significant life event has occurred. This studyยน conducted by the Behavioural Insights Team proves it. They found that a promotional leaflet for a cycle share scheme in Portland, USA was nearly 4 times more effective when they targeted ๐ก๐จ๐ฆ๐ž-๐ฆ๐จ๐ฏ๐ž๐ซ๐ฌ, compared to ๐˜ฆ๐˜น๐˜ช๐˜ด๐˜ต๐˜ช๐˜ฏ๐˜จ ๐˜ณ๐˜ฆ๐˜ด๐˜ช๐˜ฅ๐˜ฆ๐˜ฏ๐˜ต๐˜ด. BIKETOWN was launched in Portland. All residents were sent this leaflet, but focusing on new movers is more cost-effective....

The Red Bull Story Read online Dietrich Mateschitz discovered an energy drink in Thailand. It was cheap and used by factory workers to stay awake. Mateschitz took it back to Austria and set up focus group taste tests. They didn't go well. Red Bull was describedยน as: "Awful", "horrible to taste", and "disgusting". And yet, this "disgusting" drink sells 12.6 billion cans a year. Here are three possible reasons why. Anchoring Price can act as a signal of quality. Rather than charging the Thai...

AI + Psychology Read online Thereโ€™s a 2023ยน study I think of whenever I read about AI. The scientists ran four experiments and found that social proof massively improved AI suggestions. For example, people were: 17.6% more likely to buy a pair of sneakers when the AI explained, โ€œItโ€™s the most purchased item.โ€ To me, it showed that to succeed, AI needs to understand human psychology. And if youโ€™re working with AI, so do you. Adobe's London Summit Adobe was kind enough to invite me to their...

The Anchoring Effect Read online Let's start with an experiment. Consider the following two calculations and attempt to guess the answer. Don't use a calculator, take 10 seconds, and make your guess. 1 x 2 x 3 x 4 x 5 x 6 x 7 x 8 = ? 8 x 7 x 6 x 5 x 4 x 3 x 2 x 1 = ? What did you guess? Were your guesses different? The average guess for the first sum is 512, for the second it's 2,250 (4x higher). Many of you will have figured out that the actual answer is exactly the same. It's 40,320 for...