Behavioral Science For Brands: Leveraging behavioral science in brand marketing. Interview: Uri Gneezy, author of Mixed Signals, on why misaligned incentives backfire
Aug 13, 2025
Uri Gneezy, a behavioral economist and professor at the Rady School of Management, dives into the intricacies of incentives and decision-making. He highlights how poorly designed incentives can backfire, emphasizing the importance of aligning goals with desired outcomes. Gneezy discusses societal perceptions of charitable donations and how they affect donor behavior. Additionally, he shares insights on using anticipated regret to influence consumer choices and warns about common branding pitfalls that arise from misunderstanding customer incentives.
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Pilots Chasing Glory
- Uri recounts Israeli fighter pilots risking more than necessary to claim kills because identity and glory motivate them.
- The Air Force made that motive salient to recruit cheaply and effectively.
Incentives Are Signals Not Just Rewards
- Incentives send signals and can crowd out psychological motives or reinforce identity.
- If pay and stated values conflict, behavior will follow the incentive signal.
The Scorer Who Won't Pass
- Uri illustrates soccer players paid per goal may hoard shots instead of passing for team success.
- Individual pay-for-performance can reduce overall team effectiveness.
