This year was pretty great. Here are some of the more interesting things I learned: Around 90% of infants lie with their heads facing right. (Gardner, et. al. 1976) In the NBA, teams down by one at halftime are more likely to win. (Berger & Pope, 2011) Neighbors of lottery winners are more likely than […]
The psychology behind Audible’s pricing strategy
A few years ago, my boss told me I was crazy for subscribing to Audible. I had been researching subscription models for dozens of companies across several industries and markets, because our company was thinking of launching a SaaS product. Audible came up in my research not only because I subscribed, but because it was […]
The Endowment Effect: Why ownership makes you overvalue your things
You feel attached to things you own. And sometimes that can cause big problems (and cost you big time). If you’ve ever sold a house, you’ve probably entered into a negotiation with the seller. Your asking price is more than they’re willing to pay. You want to realize the biggest gain from the sale. Who […]
What causes loss aversion?
In my first week of my first marketing job, my boss told me something I’ll never forget: There is one thing that motivates people more than anything else: the fear of loss. He’s right. People go to great lengths to avoid a loss. In ten years of working in marketing, I have found that appealing […]
Prospect theory: How you make decisions when you don’t know the outcome
Every day you make decisions. Sometimes you can predict the outcome. Sometimes not. Sometimes your decisions are binary—this or that—both with positive outcomes. You’re choosing between two wins. Other times, you need to decide to take action–or do nothing. Even the decision not to decide is still a decision. Other decisions are complicated. Like this: […]
The availability heuristic: Why your brain confuses “easy” with “true”
It’s spring break, and all your friends traveled somewhere warm. And they’re all posting pictures on Facebook. Your life sucks. …Only to an extent. What you won’t see is that most of your friends are stuck in Michigan, just like you are. They’re just not posting pictures of themselves on Facebook. You get the wrong […]