The Brainy Business | Understanding the Psychology of Why People Buy | Behavioral Economics

In this episode of The Brainy Business, Melina Palmer dives into the fascinating world of habits and their impact on business. Inspired by an upcoming interview with author Scott Rick on habits and money, Melina explores how habits can be harnessed in various business settings. She shares examples of big players like Starbucks and Costco, highlighting how they leverage habits to keep customers engaged and coming back for more.  Melina's insights on the power of habits and their application in business provide a fresh perspective for entrepreneurs and business owners. By understanding the psychology behind habits, she emphasizes how businesses can create rituals, anticipation, and a sense of scarcity to increase customer engagement and loyalty. Tune in to gain a deeper understanding of how habits influence consumer behavior and how you can leverage them in your business to drive success. In this episode: Maximize Business Success with the Power of Habits Unleash Marketing Success by Leveraging Habit Formation Master the Job to be Done Method for Business Growth Unlock Alternative Product Uses by Breaking Habits Foster Consistency and Engagement in Networking Drive Engagement through Strategic Content Creation Show Notes: 00:00:00 - Introduction Melina Palmer introduces the episode and discusses the importance of habits in business and personal life. 00:03:12 - Leveraging Habits in Business Melina explains how businesses use habits to their advantage, with examples from Lego, Starbucks, and Costco, and how to apply them in different industries. 00:07:46 - Habit Formation with Apps Melina discusses how apps use daily bonuses to create habits and increase user engagement, using examples from popular games like Candy Crush. 00:12:56 - Habits to Overcome Stress and Boredom Melina delves into the role of habits in overcoming stress and boredom, using the example of KitKat's tie-in with coffee breaks to increase sales and customer habit formation. 00:18:08 - Understanding Consumer Habits Exploring the connection between consumer habits and the placement of products in stores, highlighting the importance of understanding the job a product is hired to solve rather than just its features. 00:19:16 - Uncovering Consumer Behavior Researching consumer behavior at McDonald's, specifically focusing on morning milkshake purchases and the reasons behind them. The importance of understanding the job a product is hired to do and making it easy for consumers to fulfill that job. 00:22:12 - Leveraging Consumer Insights Highlighting the significance of understanding how consumers use a product in unexpected ways, and how this can lead to new marketing opportunities. Examples include NyQuil introducing ZzzQuil and the popularity of life hacks. 00:25:39 - Payment Habits and Consumer Behavior Exploring the impact of auto-pay and regular payments on consumer habits, and how businesses can leverage this to encourage customer loyalty. The importance of making payments easy and small in order to foster habitual behavior. 00:29:35 - The Power of Appointment-Based Services Discussing the benefits of appointment-based businesses, and the importance of making it easy for customers to schedule and keep regular appointments. Examples include hair salons, nail salons, and massage therapists. 00:34:12 - The Importance of Making Habits a Priority Making regular appointments a habit by prescheduling can lead to client loyalty and reciprocity. 00:35:19 - Networking and Social Media Habits Being part of people's routines is crucial in networking and social media. Consistency in engagement and genuine relationships are key. 00:38:19 - The Power of Consistency in Content Creation Consistency in content creation is essential for building habits in your audience. Repetition and reliability drive engagement and loyalty. 00:39:27 - Importance of Commitment and Frequency The commitment to frequency in content creation is crucial for building habits. Being less frequent can make it harder for the audience to form a habit. 00:43:10 -  Conclusion Melina's top insights from the conversation. What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn. Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.  I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation. Let’s connect: Melina@TheBrainyBusiness.com The Brainy Business® on Facebook The Brainy Business on Twitter The Brainy Business on Instagram The Brainy Business on LinkedIn Melina on LinkedIn The Brainy Business on Youtube Learn and Support The Brainy Business: Check out and get your copies of Melina’s Books.  Get the Books Mentioned on (or related to) this Episode: Tightwads and Spendthrifts, by Scott Rick Happy Money, by Elizabeth Dunn and Michael Norton The Ritual Effect, by Michael Norton Good Habits, Bad Habits, by Wendy Wood Atomic Habits, by James Clear  Top Recommended Next Episode: Wendy Wood Interview (ep 127)  Already Heard That One? Try These:  Habits (ep 256) Herding (ep 264) Framing (ep 296) Chuck Howard Interview (ep 213) Nudges (ep 218) Expect Error (ep 362) Give feedback (ep 40) Stone Age Brain (ep 237) Tim Ash Interview (ep 334) Other Important Links:  Brainy Bites - Melina’s LinkedIn Newsletter Return of the weekly salon visit Clay Christensen’s Milkshake Marketing Marketing, Milkshakes and Understanding Your Customers Revival and Growth of an Iconic Brand 21 great Advent calendar ideas for Christmas 2018 LEGO City Advent Calendar

Amy Porterfield, esteemed author and host of the Online Marketing Made Easy podcast, shares her journey from working with Tony Robbins to becoming a successful entrepreneur. She emphasizes the importance of embracing entrepreneurship for personal freedom and advises aspiring entrepreneurs to have the courage to pursue their dreams. Amy's expertise in creating profitable digital courses and her emphasis on the value of an email list and scarcity marketing make this episode a must-listen for aspiring entrepreneurs seeking increased confidence and clarity in their pursuit of entrepreneurship.

Discover the psychology of time pressure and its effects on decision-making. Learn strategies to resist impulse buying and make informed purchasing decisions. Explore how businesses can use time pressure to drive sales. Uncover the impact of time pressure on creativity and productivity in the workplace. This episode provides valuable insights for navigating time pressure and making informed decisions during holiday shopping.

Dr. Felicity Heathcote-Marcz discusses brain-friendly business strategies, overcoming cognitive biases, storytelling in marketing, and cultivating empathy in customer understanding. Her expertise in immersive research methodologies and ethnographic approaches provides actionable insights for optimizing organizational strategies. The episode offers a high-level overview of the importance of brain-friendly practices for decision-making, making it valuable for leaders aiming to enhance customer engagement and organizational effectiveness.

Explore the intriguing concept of the Hawthorne Effect and its implications for employee behavior and productivity. Discover the benefits and potential drawbacks of employee monitoring for informed decision-making. Understand the impact of monitoring on productivity in a clothing manufacturing plant in India. Embrace transparency in monitoring to foster a culture of trust and accountability. Consider multiple perspectives and the importance of involving individuals in the monitoring process.

In this podcast, Lianne Potter, a cybersecurity consultant with a background in anthropology, discusses the importance of understanding user behavior and cultural nuances in technology. She highlights the need for businesses to bridge the gap between the security team and other departments, and how incorporating disciplines such as anthropology, psychology, and behavioral economics can lead to a stronger security culture. Lianne also shares insights on the metaverse and the significance of direct communication platforms in shaping our digital interactions.

In this episode of The Brainy Business podcast, you'll join host Melina Palmer as she dives into the fascinating world of behavioral economics and decision-making. With her expertise in the field, Melina explores the concept of Expect Error and how it plays a crucial role in understanding human behavior and designing effective nudges. By sharing personal experiences and real-life examples, she highlights the common errors we make in judgment and decision-making.  From post-completion errors to forgetfulness, Melina demonstrates how anticipating these errors can lead to improved decision-making and behavior. Throughout the episode, she provides valuable insights and practical strategies for businesses and individuals to leverage the power of nudges and choice architecture. So, if you're interested in enhancing your decision-making skills and understanding the psychology behind our choices, this episode of The Brainy Business is a must-listen. Get ready to gain valuable knowledge and unlock the secrets to better decision-making! In this episode, you will: Understand the impact of errors in decision-making to improve your choices. Harness the power of choice architecture to shape your decisions and outcomes. Discover effective nudges that can influence behavior and guide decision-making. Enhance the effectiveness of nudges by incorporating sensory cues. Create consistency in your routines and habits to optimize your decision-making process. Show Notes: 00:00:00 - Introduction, Melina introduces the episode, which focuses on the E in Nudges - Expect Error. She explains that humans make errors in judgment and decision-making all the time, and emphasizes the importance of designing interventions to support behavior. 00:03:32 - Importance of Expecting Error Melina discusses the importance of expecting errors in decision-making and how it is the reason why nudges and choice architecture exist. She highlights that humans are not perfect, unlike the fictitious species of econs in traditional economic models, and provides examples of errors we can expect in everyday life. 00:07:53 - Post-completion Error Melina explains the concept of post-completion error, where we mentally check off a task as done even if it is only partially completed. She shares her personal example of forgetting to move the laundry from the washer to the dryer. Melina also mentions the importance of incorporating all the senses when designing nudges to prevent errors. 00:10:22 - Consistency and Medication Errors Melina discusses the importance of consistency in preventing errors, using the example of medication adherence. She explains how taking medication daily and at a consistent time can help reduce the likelihood of forgetting. Melina also mentions the use of placebo weeks in birth control pills and the recommendation to take weekly medication on Sundays. 00:15:22 - The Power of Strategic Foresight Strategic foresight allows businesses to anticipate and solve errors before they happen, creating a strong reputation for problem-solving and customer service. 00:16:44 - Empowering Employees to Make It Right Giving employees the authority to rectify mistakes on the spot, such as offering compensation or going above and beyond, creates a culture of exceptional customer service. 00:18:07 - Going Above and Beyond The Ritz Carlton is a prime example of a company that empowers its staff to do whatever it takes to make things right for customers, creating a sense of trust and loyalty. 00:20:36 - Anticipating Errors By understanding the busy and overwhelmed state of customers and staff, businesses can implement nudges to help prevent errors and alleviate stress. 00:23:34 - Adding Value to Processes By considering the needs and potential errors of customers and staff, businesses can enhance processes by adding helpful features, such as including batteries or recommended add-ons with products. 00:31:42 - Gmail's Nudge Feature Gmail's nudge feature helps users stay on top of their emails by putting important emails back at the top of the inbox after a few days of inactivity. This nudge includes a message in a different color text, like orange, that prompts the user to follow up on the email. 00:32:41 - Hot State and Cold State Understanding the concept of a hot state and a cold state is essential in behavioral economics. In a hot state, people are more likely to make impulsive decisions and struggle to stick to commitments they made in a cold state. Strategies like self-exclusion lists for gamblers and using Dysulfram for alcoholics can help individuals stay on track even when in a hot state. 00:34:14 - Precommitment and Save More Tomorrow Precommitment strategies, like the Save More Tomorrow program, can help individuals increase their commitment to certain behaviors. For example, asking individuals to commit a percentage of their future raises to go directly into their retirement savings has led to significant increases in contributions over time. 00:35:45 - Consistency and Staying Top of Mind Consistency is crucial in business to stay top of mind with customers. Drip campaigns and regular content updates, such as blogs, podcasts, and newsletters, help remind customers of their initial interest and keep the brand in their routine. 00:37:38 - Conclusion, Melina's top insights from the conversation. What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn. Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.  I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation. Let’s connect: Melina@TheBrainyBusiness.com The Brainy Business® on Facebook The Brainy Business on Twitter The Brainy Business on Instagram The Brainy Business on LinkedIn Melina on LinkedIn The Brainy Business on Youtube Learn and Support The Brainy Business: Check out and get your copies of Melina’s Books.  Get the Books Mentioned on (or related to) this Episode: Nudge, by Richard Thaler and Cass Sunstein Alchemy, by Rory Sutherland Sludge, by Cass Sunstein What Your Customer Wants and Can't Tell You, by Melina Palmer Friction, by Roger Dooley  Top Recommended Next Episode: Give Feedback, the “G” in NUDGES (ep 40) Already Heard That One? Try These:  What problem are you solving? (ep 215) Structuring Complex Choices, the “S” in NUDGES (ep 41) Mixed Signals with Uri Gneezy (ep 273) Humanizing Rules, with Christian Hunt (ep 311) Quit, with Annie Duke (ep 227) Friction, with Roger Dooley (ep 274) Sludge (ep 179) Precommitment (ep 120) Behavioral Economics Foundations: Habits (ep 256) The Power of Habit (ep 22) Behavioral Economics Foundations: Optimism Bias (ep 34) Behavioral Economics Foundations: Reciprocity (ep 238) Behavioral Economics Foundations: Availability (ep 310) Questions or Answers (ep 4) The Overwhelmed Brain and Its Impact on Decision Making (ep 358) Behavioral Economics Foundations: Optimism Bias (ep 34) Do Lead Magnets Work and Do You Need One? (ep 3) Other Important Links:  Brainy Bites - Melina’s LinkedIn Newsletter What a 5-Step Checklist from Johns Hopkins Can Teach You About Life and Business Silpat Macaron Baking Mat Be on time with the Procrastinator’s Clock Clocky Save More Tomorrow™: Using Behavioral Economics to Increase Employee Saving The Ritz-Carlton Leadership Center Nudge: Improving Decisions About Health, Wealth, and Happiness Choice & Architecture The Chicago School of Professional Psychology Behavioral Economics Postgraduate Degree Programs

Dr. Ian Robertson, clinical psychologist and neuroscientist, explores the malleability of confidence and shares practical strategies for boosting it. He emphasizes the importance of reframing emotions and embracing failure as a learning tool. The podcast also delves into the power of collective confidence in leadership and the role of vulnerability and trust-building.

In this episode of The Brainy Business podcast, you'll join host Melina Palmer as she delves into the fascinating world of the four DOSE brain chemicals: dopamine, oxytocin, serotonin, and endorphins. Melina's passion for understanding the inner workings of the brain led her to explore how these chemicals impact our emotional well-being and motivation.  As she breaks down each chemical and its role, you'll gain valuable insights into how they influence your daily life. Melina dispels the myth that we should always be happy and instead explains how these chemicals are designed to promote survival. By understanding the power of these chemicals, you'll be equipped to optimize your own emotional well-being and motivation. So, if you're looking to increase your fulfillment and success by harnessing the power of your brain, this episode is definitely worth a listen. Get ready to uncover the secrets behind your brain's chemical reactions and discover how to leverage them for a more fulfilling life. In this episode, you will: Understand the role of dopamine in motivation and unlock the key to sustainable drive and achievement. Discover how building trust and connection through oxytocin can enhance your relationships and improve overall well-being. Boost your confidence and belief with serotonin, and unlock your true potential. Learn how to harness the power of endorphins for emotional well-being and experience increased happiness and fulfillment. Gain valuable insights on how to optimize your brain chemicals for increased motivation, success, and overall well-being. Show Notes: 00:00:00 - Introduction, Melina introduces the topic of the episode, which is a deep dive into the four happy chemicals in the brain known as the dose brain chemicals: dopamine, oxytocin, serotonin, and endorphins. She also mentions her upcoming conversation with Dr. Ian Robertson about dopamine and confidence. 00:02:18 - The Purpose of the Dose Brain Chemicals The brain chemicals dopamine, oxytocin, serotonin, and endorphins are not naturally there to make us feel good, but rather to promote survival. They have become more easily accessible in our modern world, leading to tolerance and the need for more stimulation. 00:04:27 - Dopamine and Anticipation Dopamine is released in the brain during anticipation and motivation. It is not the item or reward itself that gives us dopamine, but the drive to obtain it. Unnatural levels of dopamine from things like sugar and social media can lead to addiction and decreased satisfaction with natural rewards. 00:07:36 - The Impact of Unnatural Dopamine Levels Our modern lives are flooded with unnatural levels of dopamine from various sources, such as junk food, social media, and video games. This can lead to a decrease in motivation for natural rewards. Detoxing from these unnatural sources can help reset our brain's dopamine expectations. 00:10:59 - Training Your Brain for Natural Rewards By cutting out unnatural sources of dopamine and embracing new goals, we can help train our brains to find rewards in more natural ways. 00:16:33 - Building Trust and Oxytocin Opening yourself up to trust is key for survival and critical for the release of oxytocin. Start small, set realistic expectations, and build trust through successful commitments. 00:18:03 - Serotonin and the Need for Respect Serotonin is about confidence, social status, and belief in your own abilities. Embrace the need for respect without becoming a narcissist. Focus on the positive feedback from others and believe in your own value. 00:21:51 - Endorphins and the Importance of Pain Endorphins are released in response to pain. While exercise is a common way to release endorphins, laughter and stretching can also trigger their release. Be cautious not to chase the endorphin high and put yourself in harm's way. 00:26:10 - Cortisol and Managing Stress Cortisol is released in response to threats or fears. Constantly masking cortisol with positive experiences can lead to increased production. Allow yourself to feel cortisol and accept the natural ebb and flow of brain chemicals. 00:27:41 - Conclusion, Melina's top insights from the conversation. What stuck with you while listening to the episode? What are you going to try? Come share it with Melina on social media -- you'll find her as @thebrainybiz everywhere and as Melina Palmer on LinkedIn. Thanks for listening. Don’t forget to subscribe on Apple Podcasts or Android. If you like what you heard, please leave a review on iTunes and share what you liked about the show.  I hope you love everything recommended via The Brainy Business! Everything was independently reviewed and selected by me, Melina Palmer. So you know, as an Amazon Associate I earn from qualifying purchases. That means if you decide to shop from the links on this page (via Amazon or others), The Brainy Business may collect a share of sales or other compensation. Let’s connect: Melina@TheBrainyBusiness.com The Brainy Business® on Facebook The Brainy Business on Twitter The Brainy Business on Instagram The Brainy Business on LinkedIn Melina on LinkedIn The Brainy Business on Youtube Learn and Support The Brainy Business: Check out and get your copies of Melina’s Books.  Get the Books Mentioned on (or related to) this Episode: How Confidence Works, by Ian Robertson Indistractable, by Nir Eyal The Truth About Pricing, by Melina Palmer Good Habits, Bad Habits, by Wendy Wood Blindsight, by Matt Johnson and Prince Ghuman Top Recommended Next Episode: Wendy Wood Interview (Ep 127) Already Heard That One? Try These:  Herding (ep 264) Habits (ep 256) The Power of Habit (ep 22) Resolutions and Keeping Commitments (ep 29) Apple Card (ep 42) Biases Toward Novelty and Stories (ep 54) Surprise and Delight (ep 60) How to Get (and Stay) Motivated (ep 67) How to Set, Achieve & Exceed Brainy Goals (ep 70) Interview With Author Nir Eyal (ep 78) Why Our Brains Love Nostalgia & Traditions (ep 79) How to Finally Change Your Behavior (So it Sticks) (ep 81) Focusing Illusion (ep 89) Confirmation Bias (ep 102) How To Use Behavioral Economics to Create Thriving Cities (ep 113) Interview with Bec Weeks (ep 119) Prince Ghuman (ep 172) Matt Johnson Interview (ep 160) Truth About Pricing (ep 356) Other Important Links:  Brainy Bites - Melina’s LinkedIn Newsletter How I Tricked My Brain To Like Doing Hard Things (Dopamine Detox) Happy Brain Chemicals: Dopamine, Serotonin, Oxytocin, Endorphin Brain Chemistry Lifehacks: Steve Ilardi at TEDxKC Five Ways to Boost Your Natural Happy Chemicals Why Your Brain Loves Good Storytelling

Adam Alter, author of Anatomy of a Breakthrough, shares strategies for getting unstuck and making progress. Topics include: slowing down, acknowledging emotions, the exploration-exploitation distinction, facing fears, and taking risks. Enhance decision-making skills, understand the impact of technology, cultivate mindfulness, and overcome fear to unlock your potential.