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Behavioural economics 101: We’re only human.

By All, Behavioural Science Insights

Behavioural economics, maybe you have asked yourself once or twice, what’s all the fuss about? Why is everybody talking about us not being rational and capable of making good decisions all of a sudden? Is Behavioural Design something you should add to your competence gamma, and if yes, why so? This is a short introduction to behavioural economics. Meant to bring you up-to-speed with what everybody seems to be talking about right now in a simple way. In fact, I could summarise what’s in it for you in one sentence: 

If you want more control over successful outcomes, you have to understand you are dealing with humans, not econs. 

 

behavioural Design

The difference between economics and behavioural economics

Okay, I admit this sounds vague without any background. Basically, it comes down to a difference in paradigm on decision-making between economists and psychologists that gave birth to a beautiful cross-over between the two: behavioural economics (also known as behavioural psychology). What is it all about?

Let’s start with a problem we have probably all faced. Many new products, ventures, policies or innovations of any kind fail because they don’t take a deep understanding of human decision-making into account. They are inside-out, not inside-in driven. Therefore, innovations are often technological high-end, make things more cost-effective or offer different unique selling points, but they don’t start at the end. How do people choose for your offering? What psychological effects does pricing have? What’s, is the impact of social influence? Does the way we display products or frame policies affect decision-making? Which unconscious psychological forces influence our decision-making? Do those forces make objective sense?

According to an economist, the answer is:

  • Decision-making is rational.
  • People make a cost-benefit analysis.
  • The utility is a critical driver of any choice we make.

However, if you have ever had any regret after purchase or not making a purchase, you know that economist rule out one crucial factor: emotion. Emotions from within and emotions attached to what we think others think or expect from us. We are not 100% rational (or econs); we are filled with emotions and sometimes make decisions that are a far cry from most optimal for ourselves or our future.

Behavioural economics put emotions into the economic equation.

Bounded rationality: critical concept of behavioural economics

Furthermore, economists propose people always have all information at hand to make informed decisions. But is that true? First of all, we are bombarded with information all day long via multiple channels and media. No sane person can process all this rationally. Secondly, do we truly have all information to make informed decisions, for example, about our future? This is where we really have to make crucial decisions, after all. Buying an ice cream is not so hard but deciding upon your mortgage or pension plan is a whole different ballgame. Do you have all the information at hand to make a 100% rational decision here?

For example, do you know exactly your income level in 5, 10 or 15 years? Do you know what the inflation ratio will be in the same periods? Do you know what your health level will be like? Will you be able to work full-time, part-time or be out of work?

Rationality requires completeness of information, computational abilities, consistency in decision-making and cognitive skills (ability to think through a problem unemotionally). No human scores 100% on all these factors. So, what do we do when faced with a decision? We rely on short-cuts and social cues in our context and past experiences. We are only human, after all.

Taking the human, so-called bounded-rational part of us into the decision equation is what behavioural economics is all about.

Behavioural economists have researched and unlocked these human tendencies for years. Behavioural Designers take this behavioural science to design environments that help shape positive behaviours and choices of people. In fact, by using the exact science and combining it with design and creativity, we can create tangible products, services, policies, or organisations that help people make better decisions for their health, wealth and happiness.

Behavioral Design is applied behavioural economics.

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Behavioural economics: a game of choice architecture

One final note: How can we design environments that shape positive behaviours and better choices? Often, we think we need disclosure. Make sure you provide people with all the required information to help them make their informed decision. Unfortunately, that again is an econ approach to matters. Even if you help people with the information they need for a particular decision, we as humans often don’t use it. Most of the times, we know what is good for us but don’t act upon it.

For example, we all know exercising is good for us, and I guess we have all made a plan to do some form of exercise one day or the other, but most of us either started and stopped or are still procrastinating. This is known as the planning-action gap or intention-action gap. This is not new, of course, as we see in general three tools being applied to get humans into action:

  1. Restrictions (you cannot buy alcohol under the age of 18)
  2. Incentives (if your child attends school five days a week, you will get more child support)
  3. Selling (convincing people by telling them about benefits or USPs)

Behavioural Designers use another tool: choice architecture. We take humans and a deep understanding of their decision-making processes as a starting point to design a context that triggers better choices and behaviours. We do it using our SUE | Behavioural Design Method©, a highly structured, practical approach to turn human insights into strategies and ideas that influence better choices and shape positive behaviours. Basically, turning the breakthrough science of human behaviour into practical applications. What this results in, you can check out on our success stories page.

Summary: What’s behavioural economics all about

For now, I just want to wrap it up with the three things to remember when designing better choices and behaviours:

  1. You are dealing with humans, not econs
  2. Humans use cues in their context to make decisions
  3. You need to be aware of the intention-action gap

Taking these three principles as starting point already jumpstarts you in thinking as a behavioural designer. And understanding what all the fuss about behavioural economics is about (and how important it is to get a grip on success).

 

Astrid Groenewegen

 

Cover visual by Red with the Red Hat on Unsplash.

BONUS: free ebook 'Behavioural Economics: the Basics'

Especially for you we've created a free eBook 'Behavioural Economics: the basics'. For you to keep at hand, so you can start using the insights from this blog post whenever you want—it is a little gift from us to you.

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How do you do. Our name is SUE.

Do you want to learn more?

Suppose you want to learn more about how influence works. In that case, you might want to consider joining our Behavioural Design Academy, our officially accredited educational institution that already trained 2500+ people from 45+ countries in applied Behavioural Design. Or book an in-company training or one-day workshop for your team. In our top-notch training, we teach the Behavioural Design Method© and the Influence Framework©. Two powerful tools to make behavioural change happen in practice.

You can also hire SUE to help you to bring an innovative perspective on your product, service, policy or marketing. In a Behavioural Design Sprint, we help you shape choice and desired behaviours using a mix of behavioural psychology and creativity.

You can download the Behavioural Design Fundamentals Course brochure, contact us here or subscribe to our Behavioural Design Digest. This is our weekly newsletter in which we deconstruct how influence works in work, life and society.

Or maybe, you’re just curious about SUE | Behavioural Design. Here’s where you can read our backstory.

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How to make better financial decisions: mental accounting

By All, Behavioural Science Insights

Did you know we treat money differently depending on where it comes from, where it is kept, or how we label it? In this blog post, I want to introduce you to the concept of mental accounting. A fascinating psychological phenomenon affecting many of our financial behaviours, such as the way we spent and save money or value things for which we’ve paid money. Understanding more about mental accounting could help us design better financial decisions and behaviours. And understand why some people seem to make financial decisions that don’t always seem to make sense or be in their best interest.

Mental accounting: How humans violate the economic theory

Why mental accounting is so fascinating is that it simply explains why 1 euro isn’t always 1 euro. From an economic theory perspective, this might sound foolish. The value of 1 euro and another euro on the same day is equal. We have a whole international money rate system in place that can tell you the exact worth of your euro at any precise point in time. In four digits. Also, economists believe that it shouldn’t matter if you have a 100-euro banknote or five 20-euro banknotes. It is the same amount of money, and you will spend it the same way; after all, they are exchangeable. However, psychological research has shown that humans often violate this rational approach to money. 

This works may be easiest explained by an example described in the landmark paper of Richard Thaler (1), the author of the influential book ‘Nudge‘ and a Nobel prize laureate. Let’s say you have bought a ticket to a concert and it cost you 50 euros. You made your way to the concert venue, you have dressed up nicely, you have arranged a babysitter, and if you say so yourself: you look good. You are more than ready for the evening out that you have anticipated for weeks. You get to the entrance, reach into your pocket to find out that you have seemed to have lost your ticket. After going through all the stages of grief: denial, pain, anger, depression, acceptance, finally, hope kicks in as you see the ticket booth is still open. You quickly head over to the ticket booth to find out you don’t get your ticket reimbursed but have to pay another 50-euro for a new ticket, which is luckily still available.

Okay, same scenario, but just a bit different. You want to see that same concert, again you dress up nicely, sprayed on a bit of cologne because it is a special night out, after all, the same babysitter is there to attend to your kids, and you head over to the concert venue. When you go over to the ticket booth to buy yourself a ticket, you realise the 50-euro banknote you had put in your pocket to pay for the ticket fell out. After almost panicky going through all your pockets, reality sinks in. The 50 euros are gone. Luckily, the time tickets are still available; you have to get out another 50 euros to buy the ticket. 

The interesting question is would you do so in both situations? From an economist perspective, the exact same situation: You have lost 50 euros, and you have to pay another 50 euros to attend the concert. So, there shouldn’t be a difference in the decision you make. However, Thaler’s research found that people in the first scenario are far more likely not to buy a second ticket, whereas people in the second scenario do. 

If you lose cash, it turns out you’re willing to buy a ticket. If you lose a ticket, you do not want to buy a second ticket.

Mental accounting: What is it, and how do people do it?

Mental accounting explains this story. What is mental accounting? It is the idea that people tend to label money. And the moment you label money differently, it gets spent differently. 

People tend to label money. And the moment you label money differently, it gets spent differently.

 So, how do people mentally account? Well, there are several different ways in which people put money into different psychological categories: 

  1. You could mentally account by purpose. You can allocate money to a specific product or service, or objective. This is what happened with the concert ticket. It was assigned to the concert, losing the ticket felt we had lost out on the concert in our mental account. You think you are already in the ‘red’. You are not going to make it worse by spending even more money on the same product. But allocating money to savings is another way to mentally account by purpose.
  2. You could mentally account by time. You could say I will spend X amount per week or budget that many euros each month.
  3. You could mentally account as a function of how you have earned money. If you have put in many hours of hard work to make your money, you will spend it differently if you have earned it by winning a lottery. 

Want to shape behaviour and decisions?

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Mental accounting: The sunk cost effect

Let’s take a look at another way mental accounting influences our behaviour. Let’s get back to the concert. Let’s say you have the ticket, only this time there is a difference in how you acquired that ticket. In the first scenario, you have prepaid for it; in the second scenario, the ticket was a gift. Imagine this situation, on the evening of the concert, there is this raging blizzard storm, and the concert is a two-hour drive away from your home. Would you go to the concert in both scenarios? If you would rationally think about it, you wouldn’t go in both situations. It is much safer to snuggle up comfortably on your couch. However, most people who have prepaid the ticket will make an effort to drive a few hours through a blizzard storm to attend a concert that they (only) paid $20 for. This is caused by a phenomenon known as sunk cost fallacy

If people have spent effort, time or money on something, they will commit to the behaviour related to it; otherwise, they feel they lose out.

The moment you spend money to consume something in the future, our sunk cost effect of mental accounting kicks in. The moment you prepay, you have a deficit in your account. If you cannot consume, then you have to close your account in red. It’s like making a loss. People don’t like making losses, so they rather get what they paid for than perhaps make a better decision not to consume something. For example, if people spent 60 euros on a four-course dinner, but they are already full at the third course, most of them will eat dessert anyway. I paid for it! It feels like a loss not to go or not finish all your plates.

Another example made famous by Richard Thaler is about a man who joined a tennis club and paid a $300 membership fee for the year. After just two weeks of playing, he develops a case of tennis elbow. Despite being in pain, the man continues to play, saying: ‘I don’t want to waste the $300.’ (2)

The sunk cost effect becomes a huge motivator of consumer behaviour.

However, the intensity of the sunk cost effect isn’t always the same; it depends on how closely the cost and benefit are connected. Let me give you an example of how this works. Let’s say you love skiing and you have booked yourself a trip to the French Alps. You got yourself a four-day ski pass giving you access to all the ski lifts for the four days at the costs of € 160. You enjoyed the first three days, and then all of a sudden, the weather conditions change dramatically: Big snows, fog, heavy winds. No skiing conditions that will bring joy. The same scenario, but now you have bought four separate tickets of € 40 with which you can hit the slopes for four days. In which situation would you go out skiing on the fourth day?

This was researched (3), and it showed that people who bought the one ticket would be more prone to stay in. However, the people who had four separate tickets were far more inclined to go out and ski anyway. They felt the €40 burn in their pocket (cost) and want to experience the benefit (skiing). The all-inclusive ticket is, in fact, a form of price bundling. This leads to a ‘decoupling’ of costs and benefits. The effect being it reduces someone’s attention to sunk costs and decreasing a consumer’s likelihood of consuming a paid-for service. In other words,

Price bundling affects the decision to consume.

Now, it becomes interesting how we can use these insights to design for better choice and positive behaviour.

Mental accounting: Using it for better decision-making

Being aware of the human tendency to engage in mental accounting and being affected by the related sunk costs effect can help us develop behavioural interventions that can help people make better decisions. I want to end this blog post with an example of how this might work. 

A lot of people find it challenging to spend less money than intended. You can make this easier for them by partitioning. How does it work? Let me illustrate this with a real-life example that took place in India. In India, there are quite some low-income households with very little spare cash. Salaries are often paid in cash, making it very easy for family providers to spend it, for instance, in the bar, after a hard days’ work. Still, people also needed money for the children’s upbringing, for example. 

Those households typically earned 670 rupees per week (£6,60 or $11,20), and most families only managed to put aside 5 rupees per week (0,75%) (4). The intervention they did is divide the money into envelopes before handing it over to the beneficiary and partitioning it beforehand. It increased the savings rates to 4% (27 rupees per week)(5). What made it even more successful is putting a visual reminder on the envelopes. So, for example, a picture of their children on the envelope contained money for their upbringing.

You could also use this for yourself. We are also more reluctant to spend money we have already mentally allocated for savings. You can distribute very physically, like the envelopes, but think about labelled jars in which you divide your household money. Viviana Zelizer, a sociologist at Princeton, calls this ‘Tin Can Accounting’ (6). The more digitally savvy translation of this is the digital saving buckets many banks offer nowadays, in which you can allocate your savings to specific goals. It will be harder to withdraw money from an ‘ultimate wedding dress’ or ‘summer family holiday’ bucket than from a general savings account.

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Summary

We, as humans, often make very emotional decisions when it comes to money. It largely depends on how we have earned, labelled or how our money is kept, how we will treat money and how we value what we bought with the money. This largely influences our behaviour. A euro isn’t always a euro, and a dollar not always a dollar. It may sound illogical, but it will make perfect sense once you understand the concepts of mental accounting and the sunk cost effect. We need to take these psychological phenomena into account if we want to help people make better decisions.

Astrid Groenewegen

 

Cover visual by Kelly Sikkema on Unsplash.

BONUS: free ebook 'Mental Accounting: How Money Works in our Mind''

Especially for you we've created a free eBook 'Mental Accounting: How Money Works in our Mind'. For you to keep at hand, so you can start using the insights from this blog post whenever you want—it is a little gift from us to you.

Download ebook

Go ahead, it’s completely free of charge!

How do you do. Our name is SUE.

Do you want to learn more?

Suppose you want to learn more about how influence works. In that case, you might want to consider joining our Behavioural Design Academy, our officially accredited educational institution that already trained 2500+ people from 45+ countries in applied Behavioural Design. Or book an in-company training or one-day workshop for your team. In our top-notch training, we teach the Behavioural Design Method© and the Influence Framework©. Two powerful tools to make behavioural change happen in practice.

You can also hire SUE to help you to bring an innovative perspective on your product, service, policy or marketing. In a Behavioural Design Sprint, we help you shape choice and desired behaviours using a mix of behavioural psychology and creativity.

You can download the Behavioural Design Fundamentals Course brochure, contact us here or subscribe to our Behavioural Design Digest. This is our weekly newsletter in which we deconstruct how influence works in work, life and society.

Or maybe, you’re just curious about SUE | Behavioural Design. Here’s where you can read our backstory.

sue behavioural design

How to design a choice: The art of choosing

By All, Behavioural Science Insights

Can we design a choice? In most societies, if there is one value we hold dear, it is our freedom of choice. Having autonomy is a concept that directly speaks to our core as human being. Suppliers of goods and services understand this and have submerged us in an economy of choice that can match everyone’s individual needs. It fits our need for autonomy like a glove. It allows us to be in the driver seat of our own lives. But is it? Is it true? Does abundance help us make better decisions? Does more choice equal more satisfaction? The answer is no. So, the question is: How we can master the subtle art of choosing to shape better decisions and positive behaviours?

How to design a choice: The paradox of choice

Something interesting is going on which choice. It is a paradox, a concept cornered by Barry Schwartz. He describes the paradox of choice as follows:

So, what does this implicate? Is less indeed more? Well, yes and no. In most cases, too many options to choose from isn’t in our best interest. This has to do with our bounded rationality. We, as human beings, cannot make every decision in our daily lives wholly rational or, better put, with focused attention. There are too many decisions for us to deal with to do so.

Just think about your morning. From the moment you heard your alarm go off, you had to decide to turn it off or snooze. You had to decide to stretch or do another roll-over on your side right into that comfy spot that has the perfect temperature; You had to decide to get up or sleep in for just a little bit longer. You had to decide to get dressed right away or get your first coffee in PJ’s first. You had to decide to have coffee indeed, or did you decide to have something else? Or did you decide to go pee first? I have not even begun to talk about the decision to check your phone, turn on the radio, heating or toaster yet. Or the decision to combine all of these with checking your to-dos of the day. And your day has only just started.

These examples all may seem trivial, but they’re not. It is estimated that your brain has to compute about 35.000 decisions a day, from minor ones to bigger ones. Your brain cannot process all of them consciously or with extensive thought; It would simply crash. Therefore, a lot of our decisions are made automatically and unconscious. As Nobel laureates Kahneman and Tversky have discovered, we have two operating systems in our brain: A deliberate and an automatic one. And the automatic one has the upper hand, which is a good thing. It simply shows our brain is wired to help us navigate as with as little effort as possible through life.

How to design a choice: The phenomenon of choice overload

Now back to too many options to choose from. Why does it work against us?

First of all, having too many options causes apathy simply as it requires too much cognitive activity. This can lead to decision fatigue or even not making any decision at all. This phenomenon is called choice paralysis (also referred to as choice deferral).

There is a cognitive bias related to this phenomenon called regret aversion. When people anticipate regret from a choice, they tend to not act at all. This can have severe consequences. A meta-analysis has shown that people’s behaviour to accept medical treatments is influenced more to avoid regretting making the wrong choice than it is influenced by other kinds of anticipated negative emotions. Therefore, when designing a choice, you have to be aware that the number of options you present to someone also enhances the probability of choice regret. Which in return enhances inertia. In the mentioned example, this has shown to seriously impact behaviour concerning health.

Secondly, when we have more options to choose from, we tend to make worse decisions as we tend to rely even more on our system 1 cues, which can be biased. Examples are our tendency to stick to defaults, recommendations, or reliance on peer choices. Have you ever said in a restaurant: I am having what he/she is having’? Well, probably this was caused by option overload on the menu. Research showed what happens if there are either six or thirty food options on a menu. In the first case, people tend to choose for themselves. In the second case, they choose what their partner chooses.

Thirdly, we tend to make more conservative choices to minimise the potential for regret.

And finally, the more options to choose from we have, the less satisfied we are with the choice we did make. The more options, the more we feel we ‘missed out on.’ In his book, Schwartz described two experiments. One in which people had to choose between 20 varieties of jams and another could choose between six models of jeans. The experiment showed that the more choices people had, the less satisfied they were with their final choice. This matches Sheena Iyengar’s research, professor at the Columbia Business School and author of ‘The Art of Choosing’, which taught us that:

‘The existence of multiple alternatives makes it easy for us to imagine alternatives that don’t exist. And to the extent that we engage our imaginations in this way, we will be even less satisfied with the alternative we end up choosing. So, once again, a greater variety of choices actually makes us feel worse.

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What works to design a choice: Bounded choice

So, what works then to design choice in a way it shapes positive behaviours? Next to the concept of bounded rationality, there is the concept of bounded choice (which I prefer to call bounded options as you may have guessed). Let’s look back at the paradox of choice again. It shows that having too many choices has been associated with feelings of unhappiness.

 

A greater variety of choices actually makes us feel worse.’

But on the other hand, it works the other way around too, and on the more positive side of things:

Limiting the number of options can lead to more satisfying choices.

Researchers did a meta-analysis comparing 99 scientific studies on choice overload. They found that choice reduction is most effective when:

  1. When people want to make a quick and easy choice
  2. When the product is complex
  3. When it’s difficult to compare alternatives
  4. When consumers don’t have clear preferences

Before we design a choice: Ethical considerations

From an ethical point of view, it is good to make a distinction between options and choice. We feel it can be a very effective Behavioural Design to help someone make better decisions by limiting an option, but you shouldn’t forbid a choice. So, in fact, you design choice by working with options. This is the essence of nudging. Let me illustrate the difference with an example.

Limiting the number of options or take out some options altogether has, for example, proven to be very beneficial in helping people who are struggling with being overweight. One very effective way to fight this is to change eating habits. A lot of interventions have been developed and tested to help people change their eating patterns. From adapting food labels to more affective nudges, for example, by promoting the taste instead of a particular food’s healthiness. From a meta-analysis, aggregating data from almost 96 behavioural experiments on successfully promoting healthy eating, the most effective intervention turned out to change the plate and cup size Taking an option (in this case, large 16 oz. cups) helped people eat less and still feel satisfied. Although you take away options with this intervention, you don’t take away the freedom of choice. People always have the choice to go for a refill or buy a second portion. Only, it turned out not many people do. By simply reducing options, you make it easier for people to change their behaviour.

Just one more argument against limiting freedom of choice (instead of options). We, as humans, are wired to want a sense of control and closely tied to this sense of control is our need for freedom and autonomy. If you do forbid a choice, you may, therefore, very well encounter adverse effects. People might start avoiding, ignoring or counterarguing. This is also why warnings backfire. We don’t like to be told what to do. It crosses our innate need for freedom. And if people are pushed into doing something, they push back. How many times did you change your mind or behaviour in your adult life because someone demanded you to do so? My parents and teachers still had that influence on me, but in daily life when we want to influence people, we need to allow for agency.

Want to shape behaviour and decisions?

Then our two-day Fundamentals Course is the perfect training for you. You will learn the latest insights from behavioural science and get easy-to-use tools and templates to apply these in practice right away!

Download the brochure

Go ahead, it’s completely free of charge!

Designing a choice: Behavioural change interventions

Time to turn human understanding into practice. What can we do to help people make better decisions and be more satisfied? I want to show you five behavioural intervention strategies to design for better choices:

Limit or remove options
Terminate products or services that are not doing well.

Organise options
Make categories or ease people into choosing from more options.

Frame options
Present information to someone in a way choosing becomes easy.

Help people to understand their personal preferences
Helping them limit options to the ones that fit them.

Offer expert advice
This way, people can ask a specialist to help them choose, outsourcing the decision.


Limit or remove options
How far you should limit options depends on the behaviour you are designing. If you want someone to click on a button on your website, it is better to have one clear option. If you want someone to pick a health regimen, it works to have three options, with your preferred option positioned in the centre, as people tend to gravitate to the middle. If you want someone to buy a specific product, it works to show two options of which the left product (in Western countries) is a decoy that is priced much higher than your target product. This higher-priced product will act as a mental anchor that makes people feel your product is a perfect deal. These are best practices from behavioural science, but it is always a matter of experimenting with what works best in your situation. One thing remains the same for every situation: Less is always more when shaping decisions and behaviour. 

Organise options
However, you can make people more capable of choosing from more options. You just have to do it gradually. A research team at a German car manufacturer ran an experiment with the manufacturer’s online car configurator. Potential clients using the configurator had to choose from 60 different options to configure their entire car. Every option again consisted of sub-options. For instance, to pick your car colour, you had 56 colours to choose from, picking your engine also four options and so on. It seemed logical to have people select an ‘easy option first. For example, colour is something that most people have a set preference for. And then move to the ‘harder’ options like the engine. The experiment made half of the customers go through the configurator from many options (e.g., colour) to fewer options (e.g., engine type). The other half from fewer options to many options. The researchers found that they ‘lost’ the second group: They kept hitting the default button or aborted the process. The first group hung in there. They had the same information and the same number of options, only the order in which the information was presented varied. 

If you start someone off easy, you can teach them how to choose.

Frame Options
Sometimes option reduction is a matter of framing. In other words, thinking about how to present information to someone. Maybe you have kids, and well, most kids aren’t big on eating veggies. Mine isn’t, anyway. We, as parents, often tell our kids: ‘Eat your peas’. You’ll probably have more success if you give your kids a sense of control, designing the options a different way. ‘Do you want to eat your peas or carrots first?’ It can also work in our professional life. Let’s say you are in negotiation with a talent you like to attract your team or organisation. Make sure you frame your negations in a way options are limited but still allow for autonomy. To make it more real: Often, negotiations come down to challenging the salary offer. Suppose you give someone the option to get awarded a higher salary, but you tie a condition to it. For example, sure, you can have a higher salary X, but it implies X fewer days off. Your candidate still has freedom of choice, but at the same time, you framed your offer as bounded options. Thus, prevented setting the stage for a limitless salary/bonus battle, nitpicking over secondary employment conditions. ‘It’s either this or that kind of framing.

Identify personal preferences
We have seen that when we experience option overload, we tend to rely on system 1 cues such as following the choices of others. If you can help someone identify their personal preferences, you can rule out a lot of options. This is why shopping bots or online filters really help us navigate through options. Once you have set your preference, you only get to see a selection of all available options.

Offer expert advice
A different way to reduce options is to outsource the decision process to an expert. In this case, we can learn from the healthcare domain. If you have a condition that can be solved with treatment A, B or C, most people follow their doctor’s advice for a specific treatment. He rules out some options for you. What if we could also provide trusted experts in other domains? If you know, you can rely on an exercise, nutrition, finance, education expert? That would save you a lot of option researching and go down a rabbit hole of endless possibilities. You could simply follow the lead of a trusted specialist.  

To conclude, there is, in fact, an art to choosing. If you start to understand a bit more about the workings of the human mind this will give you far more control over successful outcomes. You can choose to be more successful, in fact. How’s that for a change? Doesn’t it spark your sense of freedom?

Astrid Groenewegen

BONUS: free ebook 'How to Design a Choice: the art of choosing'

Especially for you we've created a free eBook 'How to Design a Choice: the art of choosing.' For you to keep at hand, so you can start using the insights from this blog post whenever you want—it is a little gift from us to you.

Download ebook

Go ahead, it’s completely free of charge!

How do you do. Our name is SUE.

Do you want to learn more?

Suppose you want to learn more about how influence works. In that case, you might want to consider joining our Behavioural Design Academy, our officially accredited educational institution that already trained 2500+ people from 45+ countries in applied Behavioural Design. Or book an in-company training or one-day workshop for your team. In our top-notch training, we teach the Behavioural Design Method© and the Influence Framework©. Two powerful tools to make behavioural change happen in practice.

You can also hire SUE to help you to bring an innovative perspective on your product, service, policy or marketing. In a Behavioural Design Sprint, we help you shape choice and desired behaviours using a mix of behavioural psychology and creativity.

You can download the Behavioural Design Fundamentals Course brochure, contact us here or subscribe to our Behavioural Design Digest. This is our weekly newsletter in which we deconstruct how influence works in work, life and society.

Or maybe, you’re just curious about SUE | Behavioural Design. Here’s where you can read our backstory.

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