Tag Archive for emotional reaction

Google Apps New Pay Policy and Behavioral Economics

Google Apps Icons

Yesterday, Google flipped a switched on its Google Apps policy — starting with December 7th, 2012, Google Apps will no longer be free! The change is for Google Apps for Business and it effectively ends the ability to create free accounts for groups of 10 or fewer users (here’s Google’s announcement). Individuals could still have a personal account, but businesses will have to pay $50 per user, per year… That is NEW business customers will have to pay — if you had a business account prior to the announcement, you get to keep it on the same terms you’ve signed up for — free! But all new Google Apps business customers from this point forward will pay to play. There’s a lot of chatter about whether Google’s customers will pay or walk away, but I’m interested in the behavioral economics analysis of this change. Allow me describe a few experiments on anchoring — the psychological phenomena where individuals get attached to the first result they witness and base their subsequent decisions on that original priming. The experiments I’m going to describe come from two books: Dan Ariely’s “Predictably Irrational, Revised and Expanded Edition: The Hidden Forces That Shape Our Decisions”…

Same Desire, Cultural Shift in Solution

Give cigarettes for christmas

Over time, some desires have stayed constant: an aversion to pain, a wish for health, a longing to be loved, and a craving for wealth, power, and youth. But desires are susceptible to cultural shifts, and so they shift with the whim of fashion: the need to be thin, the hope to fit the norms of current beauty, the yearning for popularity, an aspiration for fame. Each generation comes up with solutions for their desired that are based in the cultural soup that nourished them. What is a cultural soup? Well, it’s a heady mixture of the following: anxiety — each generation has their own issues that they loose sleep over. In addition to the ones that their parents experienced, each generation can choose and pick and invent their own worries. affordances — affordances are available actions that are mired in context and situation. As context changes, affordances evolve. Each generation sees a unique subset of problem solutions. emotional design — each generation is stirred by issues and fashion that are uniquely their own. Emotional design is by definition tied to a particular group of people, be they joined in time, cause, or geography. Social value, user satisfaction, and emotional…

RE: Tracing the Spark of Creative Problem-Solving

Article:  Carey, B. (2010). “Tracing the Spark of Creative Problem-Solving.” nytimes.com. Visited on October 29th, 2012: http://www.nytimes.com/2010/12/07/science/07brain.html Summary:  Puzzles come in a wide variety of formats. They are appealing to people both because of the dopamine rush of arriving at a solution, and also because they shift the brain into an open, playful state. Puzzles are solved in two main ways — either through insight thinking or analytical thinking.  Insight thinking is when an answer comes to a person suddenly, seemingly out of the blue. Analytical thinking involves employing a systematic approach of testing available possibilities. Both types of thinking are typically required to solve challenging problems. The differences between the two approaches have been debated by scientists, but current experiments and brain-imaging studies indicate that they are separate abilities requiring truly different brain states. Test subjects are more likely to solve puzzles using insight thinking when they display brain activity in the anterior cingulate cortex. This activity is associated with the widening of attention, making the brain more open to distraction and to detecting weaker connections. Positive mood appears to shift the brain towards the state required for insight thinking. In experiments where subjects are shown a humorous video…

We Are 80% Optimistic

Gallagher, James, (2011). “Brain ‘rejects negative thoughts’.”  BBC.co.uk. Visited on October 8, 2012: http://www.bbc.co.uk/news/health-15214080 This article, “Brain ‘rejects negative thoughts’”, speaks of a generalized view of the brain based on evidence gathered from a wide population. Optimists, or those whose frontal lobes process good news and comparatively ignore bad news, make up about 80% of the population; while the remaining 20%, the pessimists, have a similar predisposition to bad news. Since optimists do not absorb bad news, risks are often underestimated; as a population, it can be generalized to say that the people respond more to good news than to bad. Conceptual Design: If risks are to be acknowledged and people’s views changed to reflect them, information regarding them should be emphasized. Information with positive effect will be more attractive, and need not be emphasized for message to be processed. Knowledge of this could be particularly useful in government. Knowing this, in sales, information may be designed which downplays risks, and emphasizes positive attributes, for maximum acceptance of the product in a general population. Furthermore, a population whose predilection is to pessimism could be acknowledged with information products designed specifically for them. Interaction Design: Elements of the product may be…

Who Controls Social Networks?

Article: Bohannon, J. (2012). “Who Controls Social Networks?” sciencemag.org. Visited on Oct 9, 2012:http://news.sciencemag.org/sciencenow/2012/06/who-controls-social-networks.html This article is about how ideas spread in social groups through peer influence. A theory long debated is that a small number of people who are influencers spread ideas through their peer groups. Critics of the theory argue that is it not how much influence these people have but how susceptible to the new idea people are. The study of peer influence has proven difficult to conduct, but the rise of social networks such as Facebook provide a means for researchers to study a large number of people. One study in the article found that on Facebook there was a clear divide between influencers and those that were susceptible to new ideas. Conceptually, it’s important for any product developer to understand who their product’s influencers are if they wish their product to spread through peer influence. The article suggests that the personality traits of people affect influence. Examples: Women influence men more than women. People over 30 were more influential than those under 30. The article states that the most important finding is that Influencers and those who are susceptible are not traits found within the…

RE: Is Pink Necessary?

How many different ways can someone describe a color? There is a delightful video titled “Luscious” by the Sappi paper company Off Register. In it, the main character attempts to describe the exact shade of “luscious” she wants printed on paper. “It’s like the inside of a baby polar bear’s ear,” she tells the printer. “It’s a nuclear accident, but there’s no problem with it,” she insists. “It’s like King Kong French kissed you … stop it Kong!” All of the metaphors from “Luscious” have another thing in common: They link disparate ideas, a seductive idea with a dangerous one. This is the problem encountered with Annie Paul’s article “Is Pink Necessary?,” which is a review of the book Cinderella Ate My Daughter by Peggy Orenstein. What color best describes a little girl’s sexuality? But little girls have no sexuality, one may protest. Research indicates they do, that children identify with external signs to determine their sex. What then is the hue of sparkly tulle and chiffon? What is the color of a kiss blown from the palm of your hand or a coyly twirled finger in softly dimpled cheek? From the viewpoint of product design, the article is better contemplated as a…