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

In today's conversation, I am joined by Phill Agnew, host of the Nudge podcast. Phill and I have gotten to be friends over the last couple of years and I've been honored to have been a guest on his podcast before, but this is the first time he is joining me here on The Brainy Business. So, you may be wondering…why now? As you'll hear me share in our conversation, one main reason is that Phill has been EVERYWHERE on my social media recently. He is doing some amazing, relatable, applicable work. I love how he is showcasing the simple tests he is conducting to really practice what he preaches in the incorporation of behavioral economics into a business application. In today’s episode, he explains some of his top tips and insights – in a way you can absolutely go through and try yourself. Listen in and then get out there and create your own test to get started! (And share it with us using the social links below.) Small changes can make a big impact.  Show Notes: [00:40] In today's conversation, I am joined by Phill Agnew, host of the Nudge podcast.  [01:15] Phill is doing some amazing work. I love how he is showcasing the simple tests he is doing and really practicing what he preaches in incorporating behavioral economics into business applications.  [03:23] Phill shares about himself, his background, and what he does in the world of behavioral science.  [04:34] In 2019 he launched the Nudge podcast. He launched the podcast to learn more, interview experts, and pick their brains to learn even more. He has been growing the show for the last three years. It is really important to him that everything on the show is applicable.  [06:15] Small changes can make a big difference.  [07:27] Phil shares about his tests on TikTok using the curiosity gap.  [09:25] He found that his curiosity gap-inspired videos made people far more likely to watch the full video and become a follower of his channel.  [11:38] Before launching The Brainy Business podcast Melina went live on Facebook for 30 days to increase excitement.  [13:34] VIDEO TIP: Pack in as much curiosity as you can in the first 10 seconds.  [14:49] He spends a lot of time advertising and testing things out on Reddit.  [16:27] Phill shares about testing social proof. Social proof is the idea that we follow the actions of others.  [17:32] 75% of the time people will give the answer they know is wrong to go with the group. Showcasing an action that other people are doing can be really smart.  [19:08] Applying these small nudges to the way you communicate can make your communications more effective.  [20:14] When testing, your variant and control should be very similar. The only thing that is different is the thing you are trying to test. He uses Google surveys a lot.  [21:17] Fresh start effects can be really powerful. Phill shares about his tests using the fresh start effect.  [23:56] Classic commitment devices can definitely have an effect as well.  [25:38] Phill shares another Google survey he did about podcast cover art and what he learned from the test.  [28:01] Check out Phill’s podcast Nudge. [28:41] Melina shares her closing thoughts.  [31:32] As you move forward with the insights from the episode, it is time to overcome your own time discount tendencies and optimism bias. Take a moment now to do something to start applying what you learned in the show today. Now is the time to do one thing. 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 Join the BE Thoughtful Revolution – our free behavioral economics community, and keep the conversation going! 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: The Choice Factory, by Richard Shotton How to Change, by Katy Milkman When, by Dan Pink Power of Regret, by Dan Pink Sludge, by Cass Sunstein Connect with Phill:  Nudge Podcast Phill on Twitter Phill on LinkedIn Top Recommended Next Episode: How To Set Up Your Own Experiments (episode 63) Already Heard That One? Try These:  NUDGES & Choice Architecture: Introducing Nobel-Winning Concepts (episode 35) Creating Content People Can’t Help But Engage With featuring Katelyn Bourgoin (episode 201) Do Nudges Work? with Michael Hallsworth (episode 218) Reciprocity (episode 23) Using Behavioral Science to Build Connections, an interview with Jon Levy, author of You’re Invited (episode 150) IKEA (episode 112) Social Proof (episode 87) How to Finally Change Your Behavior (So it Sticks) (episode 81) How To Change, an interview Dr. Katy Milkman (episode 51) The Power of Regret with Daniel Pink (episode 214) Precommitment (episode 120) Sludge (episode 179) Other Important Links:  Brainy Bites - Melina’s LinkedIn Newsletter  The Coca-Cola Experiment Only 2% of People Will Return A Christmas Card From A Stranger Solomon Asch - Conformity Experiment

In today's conversation, I am joined by Kwame Christian, who I believe is our first 3-peat guest! (Though Dr. Marco Palma from the Human Behavior Lab at Texas A&M has technically been on the show three times, once was part of a panel when we launched the certificate program so I am going to say that Kwame is in a class all his own (for so many reasons)). Kwame was also my first guest on the first-ever live show of The Brainy Business on Fireside earlier this week. If you haven't heard of Fireside yet or checked out the show there, and if you don't yet have enough Kwame (I know I never will!) check out the replay within these show notes. Fireside is a new platform co-founded by Mark Cuban where I was recently invited to do a show. It lets the audience come up on stage to participate and ask questions. It is really cool and I’m going to be testing it out for a bit to see if this is a good permanent addition to the content you get from The Brainy Business. So if you want to stay around and have a chance to come behind the scenes and be part of the show, please come join us there. And of course, listen in on this episode as Kwame and I talk all about his new book, How to Have Difficult Conversations about Race.  Show Notes: [00:40] In today's conversation, I am joined by Kwame Christian, who I believe is the first guest to be here on the show three times AND my first ever guest on the live show on Fireside.  [01:42] Fireside is a new platform co-founded by Mark Cuban where I was recently invited to do a show. It lets the audience come up on stage to participate and ask questions. [03:20] Today we are talking all about Kwame’s new book, How to Have Difficult Conversations about Race, which officially comes out on September 13th.  [05:18] Kwame shares about himself and his background. Kwame is an attorney, does work in negotiation, and has a background in psychology.  [07:27] Kwame shares his journey in writing his new book. He wants to be where the toughest conversations are.  [08:47] He is not here to teach people how to think about race. He is here to offer guidance on how to talk about race.  [11:11] We are all biased in different types of ways and we need to think more broadly about bias. People need to have a more empowered stance when it comes to bias.  [12:32] Bias is real and it is going to play a role so why don’t we take the time to calibrate and manage the role of bias in our favor? It is a strategic tool we can leverage to our advantage.  [14:22] We are biased against bias.  [15:18] Let’s live with the fact that we have biases and learn to manage them.  [17:22] If we are not making any mistakes that might be an indication of us not interacting with people that see the world differently than us.  [18:11] We have to be outcome-oriented in our conversations. We need to know our goal and then reverse engineer a strategy for that goal.  [20:04] We need to recognize that we need to be aware of the biases but not fear them. Biases make us human.  [23:07] Kwame shares a true story from his book about a man named Daryl that tries to convert KKK members. He has converted over 200 members.  [25:51] We have more persuasive power than we realize.   [28:27] In these conversations we are not going to try to win.  [30:02] His new book can be used by anybody that has any goal in a difficult conversation.  [31:54] Anything that does not violate a physical law is negotiable. We can negotiate anything, we just need the right mindset.  [34:05] Conflict is an opportunity. These difficult conversations provide us with opportunities. We just need to be curious and listen.  [36:26] Melina shares her closing thoughts.  [37:29] Not every battle is yours to fight. Choose where you can have or want impact and go full force, one strategic decision at a time. 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 Join the BE Thoughtful Revolution – our free behavioral economics community, and keep the conversation going! 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: Finding Confidence in Conflict, by Kwame Christian How to Have Difficult Conversations About Race, by Kwame Christian What Your Employees Need and Can't Tell You, by Melina Palmer How Minds Change, by David McRaney What Your Customer Wants and Can't Tell You, by Melina Palmer Connect with Kwame:  American Negotiation Institute website Kwame on Twitter Kwame on LinkedIn Top Recommended Next Episode: Introducing Kwame Christian and How to Use the Compassionate Curiosity Framework for Difficult Conversations (episode 107) Already Heard That One? Try These:  Using Anchoring in Negotiations, an Interview with Kwame Christian (episode 146) Confirmation Bias (episode 102) Anchoring (episode 11) Focusing Illusion (episode 89) Fundamental Attribution Error (episode 92) Familiarity Bias (episode 149) How Minds Change with David McRaney (episode 210) Status Quo Bias (episode 142) Framing (episode 16) Other Important Links:  Brainy Bites - Melina’s LinkedIn Newsletter  The Brainy Business LIVE on Fireside Article Melina Wrote About NASA’s Leadership Strategies That Enabled the Moon Landing for Inc Magazine

Today, we get to talk about a very fun concept known as the cobra effect or the cobra problem. It is something I included in my upcoming book, What Your Employees Need and Can’t Tell You, and I was very surprised at some of the early readers who work in the field and wrote comments like “WOW!” or called out this concept by name in their endorsement blurbs for the book. As I have said on the show before, there are hundreds of concepts, biases and heuristics in behavioral economics and behavioral science that are impacting our actions every day – it is near impossible to keep up with all of them, and sometimes you find a little golden nugget like this one which can be a new discovery for people even when they are experts in the field. I’m definitely not saying that I am the first person to talk about it or that no one knows about it. Rather, when I realized that it might be a little more obscure than I thought, it became a clear contender for its own dedicated episode sooner than later – plus it is awesome and the story of how it got that name is really interesting. Wanna hear that story and how you can use the cobra effect in business? Listen in… Show Notes: [00:41] Today, we get to talk about a very fun concept known as the cobra effect or the cobra problem. It is something I included in my upcoming book, What Your Employees Need and Can’t Tell You. [03:18] It all started way back when the British ruled India and the city of Delhi was infested with cobras. In order to help with the problem, the British set up a bounty and would pay anyone who brought in a cobra skin to help clean up the streets and keep people safe…but things didn’t work out quite as intended. [04:45] And while the effect got its namesake from this cobra incident, it is by no means an isolated problem. Apparently, there was a very similar problem in Hanoi in 1902 when the French put in their sewer system, which essentially became a rat superhighway. [06:21] Just like the cobras, when the French got wise of the scheme, they did away with the bounty and everyone let their rats go free creating an even worse (quickly multiplying) problem. [07:49] Our next example comes from Bogota, Colombia, which tried to cut down on pollution and congestion on the roads in 2008 by limiting how often you could drive. [09:42] In my research I also found a story where the government of Quebec gave considerably more money to mental health programs than to orphanages from 1940-1960. So, to try and help those orphaned children who otherwise would have had nowhere to go, the Catholic Church of Quebec reportedly misdiagnosed many children with mental illnesses to get more funding. [11:10] The main lesson from the cobra effect is that “no loophole goes unexploited.” Incentives are great and they can absolutely work, but you need to be really thoughtful about what someone might do to benefit from whatever you are proposing.  [12:16] It is always so important to look beyond the surface solution and consider the problem you are really solving before you move forward with a course of action. When you think about the problem, it is important to get out of your own perspective and understand what someone really needs and what is practical for them. [13:58] You need to consider the problem you are trying to solve AND how it lines up with the real behavior of other people, as well as what they have control over and what you have control over in the new world you are proposing. Nudges and other tactics can only get you so far. You also have to really get out of your own way and think about how someone might see this differently than you. [15:41] There are lots of valid and useful incentives and not everyone is going to take advantage of the loophole or even see it…but if the loophole is big enough and there are enough people willing to jump through it that can be a time where your solution makes the problem worse. [17:42] Every decision has an impact – even the decision to do nothing – and changing one thing can change many things that are related even if you don’t think about them (and it isn’t always in a positive way). [19:11] It is important to spend some more time thinking about those possible loopholes, and it is important to get into the mindset of the person who would be in the situation. [19:49] The ability to be “in the moment” with someone else, to empathize and imagine we are part of that experience and show “How might we?” is so valuable and such an amazing skill. When you put yourself in that space, you can think differently, and that is really helpful when you are looking for exploitable loopholes. [21:03] Melina shares questions you should ask if you are considering implementing a payout (use your free worksheet to follow along).  [22:19] Even small incentives can cause people to look for loopholes and to find opportunities for their own benefit. [25:38] Rules need to be put in place to adjust for possible loopholes. Maybe there are restrictions that need to go in place, but if there are too many restrictions, take a moment to consider if the plan is a good one or if it is time to go back to the drawing board. [27:54] It is better to be thoughtful about these loopholes and restrictions up front instead of looking back after the fact and regretting the choices you could have made differently once you have the power of hindsight. [29:02] If you haven’t already, will you consider pre-ordering a copy of my upcoming book, What Your Employees Need and Can’t Tell You? In it, I talk about the cobra effect, and so many other important concepts from behavioral science and how they can be applied to business to help teams work and communicate better together. 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 Join the BE Thoughtful Revolution – our free behavioral economics community, and keep the conversation going! 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: Choice Hacking, by Jennifer Clinehens Freakonomics, by Stephen Dubner & Steven Levitt Behavioral Insights, by Michael Hallsworth Drive, by Dan Pink What Your Employees Need and Can't Tell You, by Melina Palmer Top Recommended Next Episode: Nudging for Good at Walmart with Sarah Wilson (episode 206) Already Heard That One? Try These:  Do Nudges Work? with Michael Hallsworth (episode 218) Counterfactual Thinking  (episode 68) Secrets of Motivation and Incentives, Tim Houlihan Interview (episode 109) Motivation and Incentives at Work with Kurt Nelson (episode 187) Where CX and Behavioral Science Meet, interview with Jennifer Clinehens, author of Choice Hacking (episode 141) The Power of Regret with Daniel Pink (episode 214) The Most Important Step in Applying Behavioral Economics: Understanding the Problem (episode 126) Incentives - The "N" In NUDGES (episode 36) Other Important Links:  Brainy Bites - Melina’s LinkedIn Newsletter  The Cobra Effect: No Loophole Goes Unexploited What is the Cobra Effect The Cobra Effect The Most Ironic Examples Of The Cobra Effect Check out What Your Customer Wants and Can’t Tell You on Amazon, Bookshop, Barnes & Noble, Book Depository, and Booktopia

Today I am very excited to introduce you to Nancy Harhut, cofounder and chief creative officer of HBT Marketing. She loves getting people to take action and specializes in blending best-of-breed creative techniques with behavioral science to prompt response – online, offline, and in-person. She has spoken around the world, including numerous appearances at SXSW, and has been named one of the 10 Most Fascinating People in B2B Marketing, a Social Top 50 Email Marketing Leader, and a Top 40 Digital Strategist. Her articles and work have appeared in Admap, US Ad Review, Target Marketing, DM News, Graphis Magazine, B@B Magazine, Who’s Mailing What, Copywriting Insider, and “Open Me Now” by H.G. Lewis. Prior to co-founding HBT Marketing, Nancy held senior creative management positions with Hill Holliday, Mullen, and Digitas. She’s helped some of the world’s biggest brands create successful campaigns. Nancy and her teams have won over 200 awards for digital and direct marketing effectiveness, for clients such as AT&T, H&R Block, the GM Card, Dish Networks, and Nationwide. Today, we get to talk about her first book, Using Behavioral Science in Marketing, which just came out this week here in the U.S. Dive into the conversation and get ready to take action.  Show Notes: [00:44] Today I am very excited to introduce you to Nancy Harhut, cofounder and chief creative officer of HBT Marketing. [02:05] Her first book, Using Behavioral Science in Marketing just came out this week.  [04:20] Nancy shares about herself, her background, and how she found herself in the world of behavioral science.  [06:01] She took principles and research from behavioral science and applied/tested them in marketing.  [07:37] Anything she could find that might give her clients an advantage or extra edge was something she wanted to explore.  [10:20] It is important to test so we know what is working and what doesn’t work.  [11:10] Nancy’s examples in the book are very tangible, clear, easy, thorough, and thoughtful.  [13:49] Social proof is incredibly powerful. Nancy shares examples of using social proof with her clients and the results. [16:31] Nancy shares why she wrote her new book. People were often asking if she had a book, including her now publisher Kogan Page.  [16:54] Behavioral science and marketing absolutely work. Writing a book helps many more people to benefit from it.  [19:19] She wanted to create a book that was short on science and long on applicability. She wanted it to be practical, easy to read, and actionable. (“Mission accomplished!” says Melina.)  [21:30] She started her book with emotional and rational thinking because it was a good foundational factor and from there she started to talk about behavioral science principles that are strongly linked to emotion.  [23:24] Having more good books in the world is always a positive thing.  [25:44] If you present somebody with a couple of options as opposed to just one thing, they are much more likely to make a buying decision at the moment. If there are two options the question automatically changes to “Which of these two do I want?”  [28:29] When saying “You have to make a choice and if you don't, someone else is going to make it for you” leverages autonomy bias. There was a bigger response because people didn’t want someone making choices for them.  [30:04] Behavioral science is not just for marketing. It is applicable across so many areas and professions.  [33:04] Nancy shares an example of using choice architecture with a client that sold voluntary benefits.  [34:47] They made accepting the meeting the easy choice and the path with the least resistance.  [35:57] Melina shares an example of a blood drive on a college campus. [39:22] Melina shares her closing thoughts. [39:42] You are constantly communicating with people and there are small tweaks to your messaging that can make all the difference. [40:13] Melina’s new book, What Your Employees Need and Can't Tell You is coming out on October 11th, 2022.  [42:04] If you enjoy the experience I’ve provided here for you, will you share about it? That could mean leaving a rating/review or sharing the episode with a friend (or 10!) 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 Join the BE Thoughtful Revolution – our free behavioral economics community, and keep the conversation going! More from The Brainy Business: 🎉🎉🎉 Buy Melina’s award-winning book, What Your Customer Wants and Can’t Tell You on Amazon, Bookshop, Barnes & Noble, Book Depository, and Booktopia 🎉🎉🎉 Get the Books Mentioned on (or related to) this Episode: Using Behavioral Science in Marketing, by Nancy Harhut What Your Employees Need and Can't Tell You, by Melina Palmer What Your Customer Wants and Can't Tell You, by Melina Palmer Influence (Expanded), by Robert Cialdini Nudge, by Richard Thaler & Cass Sunstein Connect with Nancy:  HBT Marketing Nancy on Twitter Nancy on LinkedIn Top Recommended Next Episode: What is Behavioral Baking? (episode 155) Already Heard That One? Try These:  Dr. Robert Cialdini and the (Now!) 7 Principles of Persuasion (episode 157) Dan Ariely Interview: Discussing Shapa, the Numberless Scale (episode 101) NUDGES & Choice Architecture: Introducing Nobel-Winning Concepts (episode 35) Sludge (episode 179) Relativity (episode 12) How To Set Up Your Own Experiments (episode 63) Herding (episode 19) Social Proof (episode 87) Loss Aversion (episode 9) Reciprocity (episode 23) Framing (episode 16) How To Change, an interview Dr. Katy Milkman (episode 51) Defaults: Why The Pre-Selected Choice Wins More Often Than Not (episode 20) Other Important Links:  Brainy Bites - Melina’s LinkedIn Newsletter  A megastudy of text-based nudges encouraging patients to get vaccinated at an upcoming doctor’s appointment Behavior Change for Good Initiative Check out What Your Customer Wants and Can’t Tell You on Amazon, Bookshop, Barnes & Noble, Book Depository, and Booktopia

In today's conversation, I am joined by Michael Hallsworth, managing director for the Americas division of the Behavioral Insights Team, or BIT. Michael was on the show nearly two years ago in episode 125 when he was sharing about his book which is aptly named Behavioral Insights. The reason he is here today is to talk about a debate that has been going on across the behavioral science community for the bulk of this year: "Do nudges work?" Michael wrote an article recently in Behavioral Scientist which laid out all the points in a very clear way and talked about the real question we should be asking (as well as the next steps for the field in the future). I knew he was the perfect guest to come on and speak about this. He does a great job summarizing everything here and I hope you get value from this conversation. It can be hard to look at ourselves, the fields we are in, or ourselves personally, and embrace opportunities for improvement. But, it is so necessary in order to grow, change and thrive. The field is built on solid science, and we have an opportunity to do even more going forward. Listen in to hear all of our thoughts on this hot topic. Show Notes: [00:42] In today's conversation, I am joined by Dr. Michael Hallsworth, managing director for the Americas division of the Behavioral Insights Team. He was on the show nearly two years ago.  [02:37] It can be hard to look at ourselves, the fields we are in, or ourselves personally, and embrace opportunities for improvement. But, it is so necessary in order to grow, change and thrive. [05:00] Michael shares about himself and his background in behavioral science.  [06:56] Nudges guide people to decide while maintaining their freedom of choice.  [08:26] Publication bias is a problem that affects many disciplines (not just behavioral science) in the scientific literature. [11:19] Singular data points are not generalizable in other contexts. Context and testing are key.  [13:22] First we need to understand what is a realistic effect size for some of these interventions and can we get a better understanding of how context affects results.  [15:42] A missing piece of this debate around if nudges do or don’t work is looking at some work that is not affected by publication bias.  [16:59] We do have evidence for the real-world effects of nudging that are not affected by publication bias. Those effects are smaller than the ones in the original study but they are still meaningful.  [19:06] Human behavior is complex. Results vary by context and group.  [21:21] There are factors going into a result that are meaningful which may mean that something doesn’t work in a different situation.  [22:56] Instead of making overall claims we should be talking about some of these ideas a bit like scientists have talked about incentives.  [23:53] We don’t need to oversimplify or oversell because the results are there but they vary in ways we don’t understand (yet).  [25:34] Moving forward we can run multi-size studies so we can explore these differences more systematically.  [27:42] When you take your results together, you should be able to see which idea is more supported.  [29:49] They found that if you thought something was more context-dependent those studies were less likely to replicate success.  [31:35] It’s not about what you know. It is about how you match it to context to produce a result.  [33:56] Behavioral Science “in the wild” is different from behavioral science in the lab. [35:07] Within organizations it can be really hard to start tracing the threads between studies and looking into the connections.  [37:11] Michael shares about his upcoming manifesto.  [39:20] The overriding question he discusses in the manifesto is “How do we help behavioral science tackle some of those bigger questions?” [40:14] “Do nudges work?” is the wrong debate. There are ways we can take behavioral science forward.  [42:02] Anything that has happened so far isn’t bad or wrong. We are learning from what has happened and now we are moving forward.  [44:47] You may not be able to predict in advance all the potential outcomes, particularly if you are intervening in a complex environment with lots of things going on (i.e., the real world with human people). [46:11] Melina shares her closing thoughts. [47:21] The summary of what you heard from Michael is that, yes, nudges do work. And, as I have always said on this show, nothing is perfectly generalizable. [48:44] This idea of looking into the possibilities of more complex systems and being able to be even better at predicting what will happen when and why is fascinating, and something I look forward to being part of researching into the future. 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 Join the BE Thoughtful Revolution – our free behavioral economics community, and keep the conversation going! More from The Brainy Business: 🎉🎉🎉 Buy Melina’s award-winning book, What Your Customer Wants and Can’t Tell You on Amazon, Bookshop, Barnes & Noble, Book Depository, and Booktopia 🎉🎉🎉 Get the Books Mentioned on (or related to) this Episode: Behavioral Insights, by Michael Hallsworth Nudge, by Richard Thaler & Cass Sunstein How to Change, by Katy Milkman Behavioral Science in the Wild, by Nina Mazar & Dilip Soman Power of Us, by Jay Van Bavel & Dominic Packer Connect with Michael:  Michael’s Website  Michael on Twitter Michael on LinkedIn Top Recommended Next Episode: The Most Important Step in Applying Behavioral Economics: Understanding the Problem (episode 126) Already Heard That One? Try These:  NUDGES & Choice Architecture: Introducing Nobel-Winning Concepts (episode 35) Incentives - The "N" In NUDGES (episode 36) Understanding Mapping: The "U" in NUDGES (episode 37) Defaults: The "D" in NUDGES (episode 38) Expect Error: The "E" in NUDGES (episode 39) Give Feedback: The "G" in NUDGES (episode 40) Structuring Complex Choices: The "S" in NUDGES (episode 41) How To Use Behavioral Economics to Create Thriving Cities, an interview with Colu (episode 113) The Most Important Step in Applying Behavioral Economics: Understanding the Problem (episode 126) How To Change, an interview Dr. Katy Milkman (episode 51) The Power of Us with Dr. Dominic Packer (episode 178) How to Approach Negative Reviews Using Behavioral Economics (episode 163) Common Errors in Financial Decision Making with Dr. Chuck Howard (episode 213) Time Discounting (episode 51) The Power of Us with Dr. Dominic Packer (episode 178) Other Important Links:  Brainy Bites - Melina’s LinkedIn Newsletter  Making Sense of the “Do Nudges Work?” Debate The effectiveness of nudging: A meta-analysis of choice architecture interventions across behavioral domains No evidence for nudging after adjusting for publication bias Behavior Change for Good Initiative Behavioral Insights Team Website Check out What Your Customer Wants and Can’t Tell You on Amazon, Bookshop, Barnes & Noble, Book Depository, and Booktopia

Today I’m joined by Scott Schutte and Dr. Janine Stichter, co-founders of the Healthy Behavior Institute. Scott is a personal trainer, weight loss behavior coach, gym owner, and fitness educator who has successfully guided thousands of people on their fitness journey. Janine (whom he calls “Dr. J”) has been in the field of behavior change for over 20 years as a researcher, author, educator, and practitioner.  Her career has focused on understanding the “why” behind behavior and identifying clear practices that are practical and result in sustained change. As part of her research, she has procured over 14M in federal grants, published over 100 peer-reviewed articles and three books. (As well as chairing 40+ doctoral dissertations and masters committees, providing over 150 international and national presentations, and over 80 workshops.)  Together, they co-founded the Healthy Behavior Institute, an educational platform for fitness professionals and gym owners that specialize in behavior modification. I was particularly interested in having on the show because they are changing an industry where everyone has just sort of accepted that people don't do what they “should,” yet where everyone keeps doing the same thing over and over, expecting different results instead of trying something new. Thankfully, they have, and so I have asked them to enlighten us on the work they do and the advice they would give to others looking to do something similar – in any industry.  Show Notes: [00:44] In today's conversation, I am joined by Scott Schutte and Dr. Janine Stichter (Dr. J), co-founders of the Healthy Behavior Institute. [02:21] The Healthy Behavior Institute is an educational platform for fitness professionals and gym owners that specialize in behavior modification. [05:14] Scott shares about himself, his background, and how his work is related to behavioral science.  [06:06] Dr. J shares about herself, her background, and how her work is related to behavioral science. She has a doctorate in behavioral analysis. [08:22] The case for the need for behavioral science often comes from a health or wellness example because it is an area where everyone knows what they “should” do…but behavior rarely changes.  [09:50] Many times fitness trainers or the industry have misinformation because they are looking at things through their own lens.  [11:50] A lot of us can do something for a period of time that is extreme but we don’t maintain it.  [12:15] Behavior does not persist unless it is being reinforced and serving a purpose.  [12:56] When they talk about the root causes they use the EATS Model - Escape, Attention, Tangible, and Sensory.  [14:21] If we can figure out and help people figure out what the root cause of the behavior is then we can find a replacement that matches that.  [16:09] Your eating behaviors and reasoning can flow throughout the day.  [19:01] Having a guide through these changes is the fast track and going to keep you on point.  [19:55] People go through different stages of life so they have different wants and desires. This is an ongoing process that we need to reevaluate and reconfigure along the way.  [23:16] We need to focus on the minimum we need to do to trend in the direction of our goals. Tracking or journaling can be a short term learning tool but it is not something everyone has to do long term.  [24:26] Your clients are coming with different personalities and different ways they are naturally wired – you need to meet them where they are at.  [25:45] Using tracking or journaling at certain points can be helpful when necessary to educate or just give a better picture.  [28:03] The EATS Model gives you a place to start to try to understand the behavior.  [30:37] We don’t have to adjust everything every day. We could make adjustments a few days a week and still see an impact.  [32:56] Understanding the problem and the behavior shift you are trying to make is so important.  [34:32] Be cognizant of not trying to address the symptom but actually look at the why. [35:55] Behavior is a manifestation of what is going on in our heads. It is just an outward expression and we often need to get past that symptom.  [38:39] In behavior analysis and research the EATS Model is called the four functions of behavior and it applies to all industries.  [39:48] Any one thing can be all of those things (escape, attention, tangible, and sensory) at any given time.  [41:46] Melina shares her closing thoughts. [43:26] Taking the time to explore and explain how every behavior could be a source of Escape, a way to get Attention, getting something Tangible, or being Sensory is a great way to better understand (and potentially shift) that behavior. [45:08] Thank you to Andrew Gavigan for recommending this week’s guest! If you have a recommendation for someone you think should be a guest on the show or a concept or topic you want to be sure I cover please reach out to me through email or social media.  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 Join the BE Thoughtful Revolution – our free behavioral economics community, and keep the conversation going! More from The Brainy Business: 🎉🎉🎉 Buy Melina’s award-winning book, What Your Customer Wants and Can’t Tell You on Amazon, Bookshop, Barnes & Noble, Book Depository, and Booktopia 🎉🎉🎉 Get the Books Mentioned on (or related to) this Episode: Fitness Redefined, by Scott Schutte & Janine Stichter Power of Us, by Jay Van Bavel & Dominic Packer Influence, by Robert Cialdini Good Habits, Bad Habits, by Wendy Wood Tiny Habits, by BJ Fogg Connect with Healthy Behavior Institute:  Healthy Behavior Institute  Dr. J on Instagram Scott on Instagram Top Recommended Next Episode: The Most Important Step in Applying Behavioral Economics: Understanding the Problem (episode 126) Already Heard That One? Try These:  Habits (episode 21) Announcing! Certificate in Applied Behavioral Economics from the Texas A&M Human Behavior Laboratory (episode 115) Using Behavioral Science in Healthcare, Interview with Aline Holzwarth (episode 135) Dan Ariely Interview: Discussing Shapa, the Numberless Scale (episode 101) The Power of Habit (episode 22) Good Habits, Bad Habits: An Interview with Wendy Wood (episode 127) Optimism Bias (episode 34) Behavior Change at WW and Beyond, an Interview with Dr. Julie O’Brien (episode 98) Get Your D.O.S.E. of Brain Chemicals (episode 123) Get It Done: Surprising Lessons from the Science of Motivation with Ayelet Fishbach (episode 186) Framing (episode 16) Unity: Cialdini’s 7th Principle of Persuasion (episode 216) Using Behavioral Science to Tackle Addiction (and the Lessons for any Business), Interview with Richard Chataway (episode 134) Common Errors in Financial Decision Making with Dr. Chuck Howard (episode 213) Time Discounting (episode 51) The Power of Us with Dr. Dominic Packer (episode 178) Other Important Links:  Brainy Bites - Melina’s LinkedIn Newsletter  EATS Model Become A Certified Behavior Change Coach Andrew Gavigan Fitness Check out What Your Customer Wants and Can’t Tell You on Amazon, Bookshop, Barnes & Noble, Book Depository, and Booktopia

A little over a year ago, in episode 157 of The Brainy Business, I was honored to have Dr. Robert Cialdini join me on the show to talk about the new and expanded version of his book Influence, which has sold many, many millions of copies around the world, and it is so impactful even nearly 40 years after its original publishing date. The new version added 220 (pure gold!) pages and a whole new seventh principle of persuasion – unity – which is of course the focus of today’s episode.  The six original principles of persuasion include reciprocity, liking, authority, scarcity, social proof, and commitment/consistency. Most of those already have their own episodes of the podcast, which are linked for you in the show notes along with my interview with Bob when he was on the show. So, why unity? As I said, while I’ve dedicated episodes to several of the initial six principles, including scarcity, social proof, reciprocity, and precommitment…I haven’t done them all yet…so why jump to the end with Unity before “completing the set” so to speak? Listen in to find out why and learn more about the amazing principle of unity.  Show Notes: [00:07] Today’s behavioral economics foundations episode is all about Cialdini's new 7th principle of persuasion: unity. [00:48] In episode 157 of The Brainy Business, I was honored to have Dr. Robert Cialdini join me on the show to talk about the new and expanded version of his book Influence, which has sold multi multi multi million copies and it is so impactful even nearly 40 years after its original publishing date. [03:36] Unity is an underlying principle that runs through all the others. If you have unity, everything else can come easier, so understanding this technique can be impactful in most any approach. (A great reason to jump here first! It also has less info on it when you search since it is new, so I wanted to contribute there, and it has a big feature in my new book, What Your Employees Need and Can’t Tell You).  [04:54] Melina shares an overview of the first six principles. Reciprocity: when given a gift, even something incredibly small, people feel compelled to give back to the gifter. [05:51] People are more likely to do business with people they like. We are also influenced by people in authority even when they don’t have any expertise in the area we may be asking about. [06:28] Because we are a herding species, we are very influenced by social proof. We also are very influenced by items that are scarce. We find them more valuable, our FOMO and loss aversion are triggered.  [07:04] People like to be consistent and do what they have said they will do.  They also like to do business with people who do what they say they will do. Showing that you have done this is powerful. [08:02] If people aren’t buying what you have to sell, whether it is an idea or a physical product or service or anything else, it doesn’t necessarily mean the idea is wrong or bad. You can often change the way you are presenting the information and enjoy a different result. [08:35] Unity goes beyond liking or social proof and is in the space of how we are the same. It’s not just that I like you, but we are (as they say) cut from the same cloth. When you are part of my tribe, when we are a WE, I become more compelled toward whatever it is you are asking for or offering up. [09:36] We all have a lot of identities that we flow between throughout the day; they don’t have to be weighty to create that connection.  [10:54] It is pretty easy for people to come up with 20 self-defining things pretty quickly off the top of their head.  [12:32] The way we identify with a group can shape the way we see the world around us and the decisions we make. [14:31] A key to unity is finding what is central, core, or defining to both people. [16:25] When you find something that you like about someone else, it creates a connection that makes them, in turn, like you more. [18:03] Ask good questions and know there will be some commonality that will help you to find them more interesting and engaging, and give you something to talk about, and that it is possible they will think of you more fondly as well. [18:22] Know that when you need to ask people for things, your own affinity groups or people who you would say are part of your “I am” group are a great place to start because they are the most likely to say yes to you. [21:11] Bringing one particular aspect of your shared identity to the front of their mind at the right time – making that particular identity you share salient at the right moment – is key for using unity in your life and work communication. [22:17] People are busy and their brains are even busier. Reminding someone of that important detail at the right moment can have a massive impact. [23:32] We form an idea of who we are, what we are about, and the brain is really good at explaining why every action supports the way we see ourselves. [26:30] The main point I want to make is that our busy brains have a lot going on and when you are asking or offering something to someone, the way you present that information matters because the brain will assume that whatever you bring up is being brought up for some reason and it has a lot of weight on the decision the person makes in that moment. [28:46] Unity is an amazing concept that can help you relate better to those around you and have a higher likelihood that things will just flow better and be easier for you. [29:05] Take Melina’s Unity Challenge. Do the 20 statement challenge Dominic talked about in the snip from his episode on The Power of Us. Next, pick three people whom you can practice on finding a new opportunity for unity with. Use your freebie worksheet in these notes to help! [31:23] The second challenge you could take on would be to look at the short term, and if there is someone you need to ask for a favor from or to pitch something to. [32:31] Try out one or both of these challenges and share it with Melina on social media. 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 Join the BE Thoughtful Revolution – our free behavioral economics community, and keep the conversation going! More from The Brainy Business: 🎉🎉🎉 Buy Melina’s award-winning book, What Your Customer Wants and Can’t Tell You on Amazon, Bookshop, Barnes & Noble, Book Depository, and Booktopia 🎉🎉🎉 Get the Books Mentioned on (or related to) this Episode: Influence (New and Expanded), by Robert Cialdini The Power of Us, by Jay Van Bavel & Dominic Packer The Power of Regret, by Dan Pink The Influencer, by Brian Ahearn What Your Employees Need and Can't Tell You, by Melina Palmer Top Recommended Next Episode: Dr. Robert Cialdini and the (Now!) 7 Principles of Persuasion (episode 157) Already Heard That One? Try These:  The Power of Us with Dr. Dominic Packer (episode 178) Brainy Tips for Ethical Influence with Brian Ahearn (episode 199) Priming (episode 18) Reciprocity (episode 23) Loss Aversion (episode 9) Scarcity (episode 14) Fundamental Attribution Error (episode 92) Social Proof (episode 87) Herding (episode 19) Focusing Illusion (episode 89) Precommitment (episode 120) Peak-End Rule (episode 97) Other Important Links:  Brainy Bites - Melina’s LinkedIn Newsletter  How To Ethically Influence People: Interview with Author Brian Ahearn (episode 104) Texas A&M Certificate Program Check out What Your Customer Wants and Can’t Tell You on Amazon, Bookshop, Barnes & Noble, Book Depository, and Booktopia

Beatrix Daros, Global Consumer Intelligence Director for Mars, discusses a project on healthy snacking and impulse buying with KIND. They talk about using technology during the pandemic, future research plans, questionstorming sessions, and applying behavioral economics in research and project development.

In today's conversation, I am joined by Daniel Pink; author of five New York Times bestsellers, including his latest, The Power of Regret: How Looking Backward Moves Us Forward (which is the focus of our conversation today). His other books include When, A Whole New Mind, Drive, and To Sell is Human. Dan’s books have won multiple awards, have been translated into 42 languages, and have sold millions of copies around the world. I reached out to Dan while I was writing my new book, What Your Employees Need and Can't Tell You (which is now on presale and coming out on October 11, 2022) because I reference his book Drive a few times and wanted him to have a chance to weigh in and make sure I attributed everything correctly (something I do for every mention in my books). I was so deep in writing mode that I didn't realize he had a new book coming out at that time, so I asked him to come join me on the podcast to talk about his newest book, The Power of Regret. You will hear all about it in our conversation of course, but let me tell you, this book did not disappoint. It is full of great examples and extensive research -- it will change the way you think about regret and what it means to be human. You don’t want to miss this conversation where we talk all about it. Show Notes: [00:40] In today's conversation, I am joined by Dan Pink. He is the author of five New York Times bestsellers. [01:51] In this episode we talk about his newest book, The Power of Regret. [03:41] Dan shares about himself and his background. [05:49] He realized in his early thirties what he was doing on the side (writing) should be what he was doing full-time.  [07:12] He shares about the manga comic book he wrote called The Adventures of Johnny Bunko: The Last Career Guide You'll Ever Need. It is a 180-page graphic novel written in the Japanese comic form of manga.   [09:41] The book received a number of awards, including one from the American Library Association.  [12:06] In the first week the book came out he got an offer for the movie rights, which he declined, and he never got another one. (Per the theme of today’s episode…Does he regret it?)   [14:43] Dan’s tips for writing books: When it comes to writing and content creation there is a lot to be said for getting the reps. Start small and work up to writing a book. Listen to the feedback you get. [15:59] When writing a book you have to have a very high bar for whether something is worth writing a book about. Many ideas don’t have shoulders broad enough to carry a full book and they would be better as an article or essay.  [17:20] Writing a book is hard so if you don’t pick a topic that you are deeply interested in it is going to be a profoundly miserable experience.  [19:50] Does your book deserve 9 hours and 300 pages of someone else’s time? And, do you want to live with this for the rest of your life? [21:13] His early book Free Agent Nation was about the rise of people who were working for themselves.  [22:41] At any point in our lives we want to have some exploration but at a certain point, we have to execute.  [25:15] Dan loves sharing what he is working on along the way and getting feedback from others.   [27:14] Not only is regret normal and exceedingly common. Everybody has regrets.  [28:15] We want to use our regrets as information for understanding what our value is and learning to do better.  [29:21] He did two pieces of original research, one was The American Regret Project. It was a very large public opinion survey of the US population.  [30:59] He also did a piece of qualitative research called The World Regret Survey where he invited people around the world to submit their regrets (over 20,000 of them!).  [31:55] He found that people around the world had the same four core underlying regrets over and over again.  [33:42] One of the core regrets is foundation regrets. These are regrets people have about small bad decisions early in life that accumulate and have negative consequences later in life.  [34:23] Boldness regrets are if only I had taken the chance regrets. Moral regrets are if only I had done the right thing. Connection regrets are regrets about relationships.  [36:37] We need to process our regrets and use them as a force going forward. A starting point is looking at our regrets and deciding if they are regrets of action or regrets of inaction.  [38:15] Regret is one of the most common emotions that we have. Everybody has regrets.  [38:30] We have a massive amount of evidence that when we confront and think about our regrets we can use them to make better decisions, solve problems faster and better, avoid cognitive biases, become better negotiators and strategists, and find more meaning in life.  [39:59] Feelings are for thinking. They are signals, data, and information. When you have negative feelings even when it is unpleasant we need to figure out what it is teaching us to use them as a force of progress.  [41:35] You want to have way more positive emotions than negative emotions but a life well lived is not a life of only positive emotions. Negative emotions serve a role and are part of life. [43:43] Discomfort is a sign of growth so you want a little discomfort because that is how we learn and grow.  [46:00] Melina shares her closing thoughts. [48:15] If you enjoy the experience I’ve provided here for you, will you share about it? That could mean leaving a rating/review or sharing the episode with a friend (or 10!) 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 Join the BE Thoughtful Revolution – our free behavioral economics community, and keep the conversation going! More from The Brainy Business: 🎉🎉🎉 Buy Melina’s award-winning book, What Your Customer Wants and Can’t Tell You on Amazon, Bookshop, Barnes & Noble, Book Depository, and Booktopia 🎉🎉🎉 Get the Books Mentioned on (or related to) this Episode: The Power of Regret, by Daniel Pink Drive, by Daniel Pink When, by Daniel Pink To Sell is Human, by Daniel Pink A Whole New Mind, by Daniel Pink Connect with Dan:  Dan Website Dan on Twitter Dan on LinkedIn Top Recommended Next Episode: Counterfactual Thinking  (episode 68) Already Heard That One? Try These:  Unleash Your Primal Brain, An Interview with Tim Ash (episode 124) Motivation and Incentives at Work with Kurt Nelson (episode 187) Prefactual Thinking (episode 71) Framing (episode 16) How Minds Change with David McRaney (episode 210) Dr. Robert Cialdini and the (Now!) 7 Principles of Persuasion (episode 157) Focusing Illusion (episode 89) Common Errors in Financial Decision Making with Dr. Chuck Howard (episode 213) A More Beautiful Question with Warren Berger (episode 200) Get Your D.O.S.E. of Brain Chemicals (episode 123) Status Quo Bias (episode 142) Other Important Links:  Brainy Bites - Melina’s LinkedIn Newsletter  The Adventures of Johnny Bunko: The Last Career Guide You'll Ever Need Free Agent Nation: The Future of Working for Yourself Exploit & Explore: Two Ways of Categorizing Innovation Research Check out What Your Customer Wants and Can’t Tell You on Amazon, Bookshop, Barnes & Noble, Book Depository, and Booktopia

Today I am very excited to introduce you to Dr. Chuck Howard, an Assistant Professor of Marketing in the Mays Business School at Texas A&M University. In his research, Chuck asks questions like, “Why do consumers so often underpredict their future expenses?” and “Why do people who work in the gig economy over-predict their future income?” He then designs simple solutions for these problems that help people improve their financial well-being. Chuck’s research has earned awards from the Society for Consumer Psychology, the Society for Judgment and Decision Making, and the Behavioral Insights Group at Harvard University. Chuck earned his Ph.D. in Marketing and Behavioral Science from the University of British Columbia, and his BA in Economics and Finance from Ryerson University. I met Chuck on a recent trip to College Station and we have had a few conversations since then. Upon hearing about some of his recent research I thought it would be something that you would find interesting (I sure did!) and while it is more on personal financial decision-making, we definitely talk about this from a business aspect, and the insights are relevant to everyone -- especially all the people in the financial industry who I know listen to the show. Show Notes: [00:41] Today I am very excited to introduce you to Dr. Chuck Howard, an Assistant Professor of Marketing in the Mays Business School at Texas A&M University. [03:36] Chuck and Melina didn’t meet in the same way as most guests of the show.  [04:04] Chuck shares about himself, his background (including a “gap decade”), and how he found himself in this space. [06:30] He was able to combine his passion and knowledge of psychology and economics to land on studying consumer financial decision-making. [07:38] Making ridiculously optimistic budgets or underpredicting your future expenses can help a lot of people spend less money. They often spend more than they budget (but still spend less than they used to) as long as they track their spending.  [10:12] Melina and Chuck talk about some weird common sayings and how they don’t always translate around the world. [10:51] There are a number of situations in which you need to have an accurate view of how much you are going to spend in the future.  [13:14] He was motivated to understand why people underpredict expenses and how we can improve their predictions and accuracy. He wanted to help people make better financial decisions to improve their financial well-being.  [14:25] People’s predictions of expenses are deeply grounded in their past experiences. The problem is they are only thinking of the very typical things they have endured.  [16:18] In their research, they never found that the tendency to underpredict expenses or over-predict income is tied to being an optimist. It is simply about what comes to mind most easily when you are making the prediction.  [18:23] Chuck shares about a study they did where they asked people over several weeks to tell how much they spent the week prior, how typical their spending was that week, and how much they think they will spend the following week.  [19:25] Atypical expenses are common in the sense that they happen a lot of the time, but then they are uncommon because it is not the same thing repeated over time so people don’t think they will happen again.  [22:20] If the person you are thinking of is similar to you then it could be helpful to think of their spending. It could help you gain perspective on your spending.  [24:59] To make more accurate expense predictions they prompt people to consider a handful of reasons why their expenses will be different than usual. This helps them think of those atypical expenses and increases prediction accuracy.  [26:23] So far, they have people type out the reason that their budget could be atypical. Writing it down may help because it takes a load off your working memory. [29:00] They were motivated to do budgeting research because there was a debate about whether or not budgets actually work.  [30:08] Even though peoples’ budgets are wildly optimistic and they never end up spending as little as they have budgeted, they still end up spending substantially less than they used to.  [32:23] You have to be tracking your spending against your budget. Once a week is ideal. [34:58] At the end of the day it is typically about understanding why. [36:53] Be very conscious of what information you are giving to people and when.  [38:55] Even if you haven’t hit your budget (because most people don’t), you are still spending less than you used to.  [41:40] They found that budgets are an effective way to decrease spending across a number of different personality traits.  [42:11] Tracking and monitoring your behavior against a goal can be very powerful. [45:21] Melina shares her closing thoughts. [47:40] If you enjoy the experience I’ve provided here for you, will you share about it? That could mean leaving a rating/review or sharing the episode with a friend (or 10!) 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 Join the BE Thoughtful Revolution – our free behavioral economics community, and keep the conversation going! More from The Brainy Business: 🎉🎉🎉 Buy Melina’s award-winning book, What Your Customer Wants and Can’t Tell You on Amazon, Bookshop, Barnes & Noble, Book Depository, and Booktopia 🎉🎉🎉 Get the Books Mentioned on (or related to) this Episode: Nudge, by Richard Thaler and Cass Sunstein Marketing to Mindstates, by Will Leach Sludge, by Cass Sunstein Friction, by Roger Dooley What Your Customer Wants and Can't Tell You, by Melina Palmer Connect with Chuck:  Chuck on Texas A&M Website Chuck on LinkedIn Mays Business School on Twitter Top Recommended Next Episode: Checking in with Dr. Marco Palma (episode 202) Already Heard That One? Try These:  Inside the Texas A&M Human Behavior Lab (episode 33) Brainy Health Benefits of Nature, with Dr. Jay Maddock (episode 203) Behavioral Bartending with Maker's Mark, featuring Greta Harper (episode 207) NUDGES & Choice Architecture (episode 35) Planning Fallacy (episode 114) Behavioural Science Club: Interview with Co-Founder Louise Ward (episode 118) Optimism Bias (episode 34) How To Change, an interview Dr. Katy Milkman (episode 51) How to Finally Change Your Behavior (So it Sticks) (episode 81) Anchoring(episode 11) Pain of Paying: Why The First Item In A Purchase Is The Hardest: A Behavioral Economics Foundations Episode (episode 59) Using Biosensors to Unpack Human Behavior, with iMotions’ Jessica Wilson (episode 182) Other Important Links:  Brainy Bites - Melina’s LinkedIn Newsletter  Understanding and Neutralizing the Expense Prediction Bias: The Role of Accessibility, Typicality, and Skewness The Influence of Budgets on Consumer Spending Income Prediction Bias in the Gig Economy Can Behavioral Economics Increase Savings and Member Loyalty? Check out What Your Customer Wants and Can’t Tell You on Amazon, Bookshop, Barnes & Noble, Book Depository, and Booktopia