"B's get degrees!"

We've all heard the saying "C's get degrees!" but is this really a good thing to base our grades off of? What if the saying were "B's get degrees"? Would this increase the standards that college students have for themselves? It is true that C's get degrees, but if the "normal" was B's rather than C's, I believe more people would strive for higher grades.

In my Consumer Behavior class we had to come up with a nudge that would encourage students to study more and do more homework. One small idea we had (but it would be very hard to implement) is this "B's get degrees" mentality into students. Since this motto is so engrained in students minds with C's, the reality of this happening is not that great.

Our second and more feasible idea is to make final exams optional. The way it would work is if students are happy with their grade going into the final exam, they do not have to take the final. Rather than finals being manditory, have finals be something that can only help you, but not hurt you. This would make students work harder earlier on in the semester, as they can be rewarded by not having to endure finals week. If a student has a B in a class, and they are happy with that then they are exempt from taking the final so there is no chance that their grade can go down. However, if that same student wants to take the final in hopes to get an A in the class, they can do so to try and help their grade. If a student is not passing a class, then they obviously have no choice but to take the final exam, or to retake the class.

We think this would be very helpful to students in encouraging them to try harder on homework and be more dedicated to their studies earlier on in the semester. Everyone dreads finals week, and we believe that most students would do whatever it took to get out of that awful week.

grocery bags: T R I C K Y or meaningless?

In an article titled "How Grocery Bags Manipulate Your Mind," by the Harvard Business School, we discover that maybe grocery bags do more than just provide a place to hold your groceries. I personally have never given much thought on the power of a bag before, but now I see why it is important. Do you think the type of grocery bag you use determines your likeliness to purchase ice cream??


     



In a study done by Carmen Noble, senior editor of Harvard Business School Working Knowledge, experiments were conducted to show a relationship between customers bringing their own reuseable grocery bags and the types of food they chose to purchase. Noble discovered that there is a high correlation between bringing your own reuseable bag and purchasing organic foods and indulgent items such as ice cream and cookies. The fact that people who use reuseable bags are more likely to purchase organic food makes sense because they obviously care about the environment and good healthy, however the ice cream is a different story. It seems strange that the same person who buys organic foods is also very likely to purchase unhealthy "snack" foods. The reason is because when people bring their own bag, they feel they are doing something good and shall be rewarded, in this case with indulgent items.

It turns out there is a high chance that you will buy ice cream (or something else indulgent) next time you go to the grocery store if you bring your own bag willingly. We make subconcious choices every single day as consumers and I bet you never thought this is one that people make. It seems a little far fetched, but hey, stranger things have happened.

To read the details of the experiment go to:
http://hbswk.hbs.edu/item/how-grocery-bags-manipulate-your-mind

the D A S H button

Amazon recently released a new product that changes the way consumers purchase common household items. This product is called the Dash Button. The Dash Button allows customers to purchase a button specifically for a variety of items relating to household supplies, grocery, health and personal care, and pets. Each button costs $4.99 and once it is received, all the consumer has to do is press the button when they are running low on that specified product. Amazon automatically ships the amount previously specified on your account to your doorstep so you never run out of products again. The dash buttons look like this:

The dash buttons are sticky on the back, similar to a command strip, which allows you to place it next to the toilet paper so it's convenient to push, next to the washer so you can press it when you are getting low on detergent, and anywhere else in the house!

This is a whole new step in the realm of consumer buying habits, and I think it has potential to be really affective for some customers. For people that lead extremely busy lives and are busy running their kids to sports practices and other events, this is the answer to their prayers. Personally, I enjoy going to the store to get the things I need and I don't seem to have a problem with running out. I don't think that I will be part of the target market, but I think many Americans will be! What do you think about the Dash Button?

customers who bought this item A L S O bought...

If you have ever shopped on Amazon, you will know exactly what I am talking about when it says "Customers who bought this item also bought..." This upselling technique is called Amazon suggestion. Suggestions tactics like the one Amazon uses is a great way to get customers to continue shopping similar items. Getting lost in a plethora of extra items is like getting lost in YouTube videos... it's a endless vicious cycle. It becomes so easy to just keep clicking and all of a sudden you have added two more items to your cart!

Many online retailers use this tactic as a way to show consumers what else they have to offer, based on your preferences and other buyers preferences similar to yours. It's a great way to make you see what else there is, without feeling like you are being forced to look at all of these other items. At the same time, these probably really are items that you would like because other like-minded people have bought the same thing!

This is obvioulsy a nudging technique that works very well, as it is becoming more and more popular on a variety of websites. Next time you are browsing the internet, pay attention to how many retail websites of any kind use this tactic to get more items in your cart. Be careful not to fall for this technique, it can be very very sneaky! Or do, it may lead you to something you didn't even know you needed.

F R E E shipping and returns!

Online shopping is becoming increasingly popular in todays web driven times. If you have ever online shopped for any item, you will probably agree that most websites offer "Free shipping on orders over $..." This is a very convincing nudge.

As the consumer, you went on to buy that on sweater that is $45.99, but now you see that you only have to spend $50 to get free shipping! So what do you do? Of course you aren't going to pay the $7 shipping charge, but rather buy the shirt you debated on getting that costs $20, because at least you are getting something with that extra money spent - not just spending it on shipping. And just like that, your order increased from $45.99 to $65.99, but hey, you got free shipping...

Not only does that nudge people to buy an extra item, but it allows people to act as if they were shopping in store and able to try everything on. Since there is free shipping and returns, you might as well order everything you are even thinking about getting, and then you can try it all out and send back what you don't like. Psh, chances are you will like most of it. More often than not when I myself have done this, I end up keeping more than I originally planned because I have already spent the money AND it's just so much better in person.

The power of this one little nudge is becoming increasingly popular for todays online shopping. Companies know that without a doubt, you will end up spending more than originally planned, and the shipping costs them next to nothing. They are more than willing to pay the extra cost to nudge you to tack on that extra shirt you thought you might like.

can I get you A N Y T H I N G else?

I work in the service industry, at a coffee shop to be exact, and it never ceases to amaze me the power of saying "Can I get you anything else?". This instantly plants the idea in consumers minds that maybe they do want something else. Maybe they don't just want that latte, they would actually like a muffin to go with it. If I'm asking if they want anything else, it may be rude to say no, but rather choose something else that they maybe didn't even want in the first place.

I see it happen all the time - and I believe we are all prone to do it. When the waiter or waitress at a restaurant automatically brings the dessert menu, it is much harder to turn it down. All of those delicious options right in front of you, how can you resist? When the idea is planted that we shoud be getting more than what we are already getting, it becomes much harder to turn down.

These examples show the power of a nudge. Someone is nudging you to get more than you wanted, but it becomes much harder to say no. Just that little extra push can be the difference between getting the consumer to buy or not to buy...

too many C H O I C E S

...If this isn't the best meme you have ever seen, I don't know what is!

Back to having too many choices... I was listening to Pandora Radio this morning and I heard a funny add that related directly to having too many options as consumers! Jensen Jewelers was advertising engagement rings. They were marketing their hundreds of different rings, for every budget, all with 14 different financing options. 14 financing options!!! In "The Paradox of Choice," Schwartz poses the idea that having too many choices can lead to uncertainty, regret, and a struggle to make a decision. I think this is exactly what will happen when a man walks into Jensen Jewelers.

Most people will not ever miss the choices they don't even know they have, but it is easy to regret the choice that you made. As consumers, we think more choices will lead to a more definite decision because we see everything there is and are able to choose from all of them. Contradictorily, it only makes the decision making process worse.

The following video talks about the scientific part of having to make choices and highlights a phenomenon known as decision fatigue. This states that no matter how small or large the decision, choices causes anxiety - even in win win situations where there is no 'wrong' choice! He also discusses decision paralysis, which is when consumers get overwhelmed by too many choices and they end up not making a choice all together. This is a great five minute clip to talk about the downfalls of too many choices!





And there we have it... Too many choices is stressing us out and causing us to be bad decision makers. So next time you are faced with a choice, narrow your options and don't think about it again once your decision is made.