I like to think that despite being wealthier than most Americans, I remain immune to materialistic desires. I drive a 17-year-old Honda Accord and wouldn’t know designer clothes if you wrapped me in them, head to toe. But it turns out that I’m wrong. I’m not above materialism despite my wealth and social status. I’m…
In two recent posts, I have posed questions about the appropriateness or inappropriateness of manipulating consumers by taking advantage of behavioral phenomena beyond their awareness. We behavioral scientists know things about human nature that most people haven’t learned. That is why we can fill books with visual illusions – our understanding of how the brain…
Steven Johnson was a rising star at the NordicWear Company, even before that brutal winter of 2002. But then, thanks to a rebate program he instituted for their new line of snow pants, he rocketed up the corporate ladder. His plan was brilliant in its simplicity. Late in the previous winter, he ran a series…
I teach a course on consumer irrationality and market failure at the Fuqua School of Business. I open up one of my lectures with a brief video demonstration of what psychologists call “the McGurk effect.” (See an example here.) In the video, a man makes the sound “ba ba ba.” About half of my students invariably identify…
Dr. Smith Townsend knelt on the filthy train station floor, the patient lying in front of him with a bullet wound in his back. The patient was clinically stable for the moment, so Townsend turned his attention to the wound, convinced a quick removal of the bullet would offer his patient the best chance of…