Business/ By Nima Shokouhfar

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Business/ By Nima Shokouhfar by Mind Map: Business/ By Nima Shokouhfar

1. Note

1.1. "Counterintuitively, fear is not the enemy, in fact, it is your best friend."

1.1.1. Without, you cannot stay out of the herd

1.1.2. Without it, you cannot sell product

1.1.3. Without fear, life would have been an anarchy.

2. story

2.1. mystery-story format

2.1.1. "In keeping with the holding power of puzzles, I’ve learned that I can arrange for an audience to comprehend those teaching points more profoundly if I present them in mystery-story format." (from "Pre-Suasion: A Revolutionary Way to Influence and Persuade" by Robert B. Cialdini)

3. Illusions

3.1. Self

3.2. Free will

3.3. Good and bad

3.4. God

3.5. The focusing illusion

3.5.1. When we focus attention on something, we immediately come to see it as more significant to us. Nobel laureate Daniel Kahneman labeled the phenomenon “the focusing illusion,”

3.5.2. often when we make a decision about someone or something, we don’t use all of the relevant available information. We use only a single, highly representative piece of the total.

4. Cognitive Biases and Heuristics

4.1. marketing

4.1.1. endowment effect

4.1.2. Implicit egotism

4.1.2.1. Implicit egotism is the hypothesis that humans have an unconscious preference for things they associate with themselves

4.1.3. status quo

4.1.4. loss aversion

4.1.5. Sunk cost fallacy

4.1.5.1. the phenomenon whereby a person is reluctant to abandon a strategy or course of action because they have invested heavily in it, even when it is clear that abandonment would be more beneficial.

4.1.5.2. can be related to burning the ship

4.1.5.3. example

4.1.5.3.1. The group members had gone too far, given up too much for their beliefs to see them destroyed; the shame, the economic cost, the mockery would be too great to bear.

4.1.5.3.2. I’ve turned my back on the world. I can’t afford to doubt. I have to believe. And there isn’t any other truth.

4.1.5.3.3. So massive was the commitment to their beliefs that no other truth was tolerable.

4.1.6. regret aversion

4.1.6.1. a negative emotional bias that urges investors to avoid regret, thus sometimes making the wrong decision

4.1.7. extremeness aversion

4.1.7.1. it’s the idea that people will go to great lengths to avoid choosing an option that lays on the extremes of thinking

4.1.8. Confirmation bias

4.1.8.1. is the tendency of people to favor information that confirms or strengthens their beliefs or values and is difficult to dislodge once affirmed.

4.1.8.2. As one famous psychologists noted, when we examine evidence relevance to a given belief, we're inclined to see it the way we want to see it

4.1.8.3. The more we care about something the smaller the zone of things we're willing to consider.

4.1.8.4. example

4.1.8.4.1. Exact same game, two very different perspectives just based on the lens with people saw that game through

4.1.8.5. Zones

4.1.8.5.1. zone of acceptance

4.1.8.5.2. zone of rejection

4.1.8.6. solution

4.1.8.6.1. finding the movable middle

4.1.8.6.2. asking for less

4.1.8.6.3. switching the field to find an unsticking point

4.1.8.7. Moveable middle

4.1.8.7.1. One place where candidates changed minds in general elections, even when change seemed quite difficult, and that was by finding something called the movable middle

4.1.8.7.2. People who have a larger zone of acceptance or a zone that overlaps more with the candidate's positions

4.1.8.7.3. And so when dealing with issues where people feel strongly, we need to start with the movable middle

4.1.8.7.4. behavioral residue.

4.1.9. Consensus bias

4.1.9.1. it is a pervasive cognitive bias that causes people to “see their own behavioral choices and judgments as relatively common and appropriate to existing circumstances

4.1.10. Restraint bias

4.1.10.1. Restrain bias is the tendency to overestimate our ability to resist temptations when making a decision

4.1.11. herding bias / bandwagon effect

4.1.11.1. it is a psychological phenomenon in which people rationalise that a course of action is the right one because 'everybody else' is doing it

4.1.12. Present bias

4.1.12.1. Present bias is the tendency to rather settle for a smaller present reward than to wait for a larger future reward, in a trade-off situation. It describes the trend of overvaluing immediate rewards, while putting less worth in long-term consequences

4.1.13. hindsight bias

4.1.13.1. hindsight bias, the tendency, upon learning an outcome of an event—such as an experiment, a sporting event, a military decision, or a political election—to overestimate one's ability to have foreseen the outcome.

4.1.14. Say do gap bias

4.1.14.1. Listening to what customers say, without an appreciation of their biases and motivations – emotional, unconscious, and sometimes irrational – delivers only a veneer of insight. This may be useful in directing thinking, but can result in time and effort being invested in the wrong place.

4.1.15. Anchoring Bias

4.1.15.1. Anchoring bias describes people's tendency to rely too heavily on the first piece of information they receive on a topic. Regardless of the accuracy of that information, people use it as a reference point, or anchor, to make subsequent judgments.

4.1.15.2. example,

4.1.15.2.1. As you can tell, I cannot charge you one billion dollar. However, the price of the product is 1000 dollars

4.1.16. Availability cascade bias

4.1.16.1. Availability cascade is a bias in human psychology which acts as a self-reinforcing cycle that perceives information to be true as it is spoken widely with increased repetition in the public domain. As a result, everyone believes such information to be true.

4.1.17. zero risk bias

4.1.17.1. Zero-risk bias is the tendency to eliminate all current possibilities of risks even when alternatives may reduce more risks and may produce better results.

4.1.18. Response bias

4.1.18.1. Response bias refers to several factors that can lead someone to respond falsely or inaccurately to a question. Self-report questions, such as those asked on surveys or in structured interviews, are particularly prone to this type of bias.

4.1.19. authority bias

4.1.19.1. it is defined as having an unreasonably high confidence in the belief that the information verified by a person with formal authority is correct, and therefore an individual is likely to be more influenced by them.

4.1.19.2. the shortcut rule that goes, “If an expert said so, it must be true.”

4.1.20. Choice overload bias

4.1.20.1. quotes

4.1.20.1.1. "First, a thorough analysis of all legitimate roads to success is time consuming, requiring potentially lengthy delays for identifying, vetting, and then mapping out each of the promising routes; and highly placed decision makers didn’t get to their lofty positions by being known as bottlenecks inside their organizations. Second, for any decision maker, a painstaking comparative assessment of multiple options is difficult and stressful, akin to the juggler’s task of trying to keep several objects in the air all at once. The resultant (and understandable) tendency is to avoid or abbreviate such an arduous process by selecting the first practicable candidate that presents itself." (from "Pre-Suasion: A Revolutionary Way to Influence and Persuade" by Robert B. Cialdini)

4.1.20.1.2. "The combination reflects two simultaneous goals of a chooser when facing a decision—to make it good and to make it gone—which, according to Simon, usually means making it good enough." (from "Pre-Suasion: A Revolutionary Way to Influence and Persuade" by Robert B. Cialdini)

4.2. non-marketing

4.2.1. declinism

4.2.1.1. Declinism bias is when view the present or future in an excessively negative light, and romanticize the past in a positive light. Following this, it leads us to believe that everything is worse than it used to be in the past.

4.2.2. belief bias

4.2.2.1. Belief bias is the tendency in syllogistic reasoning to rely on prior beliefs rather than to fully obey logical principles.

4.2.3. Bellow average bias or Worse-than-average effect

4.2.3.1. The worse-than-average effect or below-average effect is the human tendency to underestimate one's achievements and capabilities in relation to others. It is the opposite of the usually pervasive better-than-average effect.

4.2.4. Better than average

4.2.4.1. The better-than-average-effect (BTAE) is the tendency for people to perceive their abilities, attributes, and personality traits as superior compared with their average peer.

4.2.5. just world hypothesis

4.2.5.1. The just-world hypothesis refers to our belief that the world is fair, and consequently, that the moral standings of our actions will determine our outcomes. This viewpoint causes us to believe that those who do good will be rewarded, and those who exhibit negative behaviors will be punished.

4.2.6. Optimism bias

4.2.7. Pessimism bias

4.2.8. naive realism

4.2.9. Moral luck

4.2.10. curse of knowledge

4.2.11. false memory bias

4.2.11.1. False memory refers to cases in which people remember events differently from the way they happened or, in the most dramatic case, remember events that never happened at all

4.2.12. cryptomnesia bias

4.2.12.1. It is a memory bias whereby a person may falsely recall generating a thought, an idea, a tune, a name, or a joke,[1] not deliberately engaging in plagiarism but rather experiencing a memory as if it were a new inspiration.

4.2.13. The Optimism Bias

4.2.14. pessimism bias

4.2.14.1. The pessimism bias refers to the tendency to overestimate the likelihood of negative events while underestimating the likelihood of positive events

4.2.15. The Availability Heuristic

4.2.16. The Self-Serving Bias

4.2.17. The Halo Effect

4.2.18. automation bias

4.2.18.1. Automation bias is an over-reliance on automated aids and decision support systems. As the availability of automated decision aids is increasing additions to critical decision-making contexts such as intensive care units, or aircraft cockpits are becoming more common.

4.2.19. Outgroup Bias

4.2.19.1. it is the psychological tendency to have a dislike for other people that are outside of one's own identity group

4.2.20. placebo bias

4.2.20.1. The tendency for patients or experimental subjects to report their symptoms in a way they feel is socially acceptable or desirable. Patients or experimental subjects in the placebo group may report symptoms more optimistically than in the no-treatment group.

4.2.21. survivorship bias

4.2.21.1. Survivorship bias occurs when researchers focus on individuals, groups, or cases that have passed some sort of selection process while ignoring those who did not. Survivorship bias can lead researchers to form incorrect conclusions due to only studying a subset of the population

4.2.22. blind spot bias

4.2.22.1. Blind Spot Bias is the tendency to see oneself as less biased than other people, or to be able to identify more cognitive biases in others than in oneself.

4.2.23. Affinity bias

4.2.23.1. Affinity bias, also referred to as similarity bias, is the unconscious human tendency to gravitate toward other people with similar backgrounds, interests, and beliefs.

4.2.24. gambler's fallacy

4.2.24.1. occurs when an individual erroneously believes that a certain random event is less likely or more likely to happen based on the outcome of a previous event or series of events.

4.2.25. tachypsychia

4.2.25.1. Tachypsychia” is a neurological condition that distorts the perception of time, appearing to make events slow down or speed up

5. effects

5.1. Marketing

5.1.1. matthew effect

5.1.1.1. The Matthew effect of accumulated advantage, Matthew principle, or Matthew effect, is the tendency of individuals to accrue social or economic success in proportion to their initial level of popularity, friends, wealth, etc. It is sometimes summarized by the adage "the rich get richer and the poor get poorer"

5.1.2. Ikea effect

5.1.2.1. the IKEA effect speaks to how we tend to like things more if we've expended effort to create them.

5.1.3. zeigarnik effect

5.1.3.1. It postulates that people remember unfinished or interrupted tasks better than completed tasks

5.1.3.1.1. Progress trackers which inform users of how close they are to complete a task. For example, when users see a message like "Your profile is 64% complete", they are more likely to spend a few minutes on providing all missing details.

5.1.4. house money effect

5.1.4.1. The house money effect is a theory used to explain the tendency of investors to take on greater risk when reinvesting profit earned through investing than they would when investing their savings or wages.

5.2. non-marketing

5.2.1. bystander effect

5.2.1.1. It is a theory that states that individuals are less likely to offer help to a victim in presence of other people

5.2.2. the pain of independence

5.2.2.1. The answer lies in what occurred whenever they resisted the consensus of other people. The sector of their brains associated with negative emotion (the amygdala) became activated, reflecting what the researchers called “the pain of independence.”

5.2.3. self-relevance

5.2.3.1. The self-relevance effect refers to the human tendency to wonder, "Is this about (or does it effect) me?" when evaluating other peoples' facial expressions.

5.2.4. backfire effect

5.2.4.1. The backfire effect is a cognitive bias that causes people who encounter evidence that challenges their beliefs to reject that evidence, and to strengthen their support of their original stance

5.2.5. ben franklin

5.2.5.1. The Ben Franklin effect is a proposed psychological phenomenon: people like someone more after doing a favour for them

5.2.5.1.1. People reason that they help others because they like them, even if they do not, because their minds struggle to maintain logical consistency between their actions and perceptions.

5.2.6. third person effect

5.2.6.1. The third-person effect hypothesis predicts that people tend to perceive that mass media messages have a greater effect on others than on themselves

5.2.7. spot light effect

5.2.8. Zeigarnik effect

5.2.8.1. The Zeigarnik Effect is the tendency for tasks which have been interrupted and uncompleted to be better remembered than tasks which have been completed.

5.2.8.2. example

5.2.8.2.1. "During the experiment, the men who kept popping up in the women’s minds were those whose ratings hadn’t been revealed, confirming the researchers’ view that when an important outcome is unknown to people, “they can hardly think of anything else.” And because, as we know, regular attention to something makes it seem more worthy of attention, the women’s repeated refocusing on those guys made them appear the most attractive." (from "Pre-Suasion: A Revolutionary Way to Influence and Persuade" by Robert B. Cialdini)

5.2.9. outgroup homogeneity

5.2.9.1. The out-group homogeneity effect is the perception of out-group members as more similar to one another than are in-group members, e.g. "they are alike; we are diverse".

5.2.10. framing effect

5.2.10.1. it is a cognitive bias where people decide on options based on whether the options are presented with positive or negative connotations

5.2.11. Google effect

5.2.11.1. The Google effect, also known as digital amnesia, is the tendency to forget information that is readily available through search engines like Google. We do not commit this information to our memory because we know that this information is easy to access online.

5.2.12. what the hell effect

5.2.12.1. the what-the-hell effect describes the cycle you feel when you indulge, regret what you’ve done, and then go back for more. Your brain rationalizes your behavior by saying, “You already blew your goal of only having two cookies, so... what the hell, you might as well eat the entire pan.”

6. Culture

6.1. norm of social responsibility

6.1.1. quotes

6.1.1.1. "The obligation comes from the helping norm, which behavioral scientists sometimes call the norm of social responsibility. It states that we should aid those who need assistance in proportion to their need. Several decades’ worth of research shows that, in general, the more someone needs our help, the more obligated we feel to provide it, the more guilty we feel if we don’t provide it, and the more likely we are to provide it." (from "Pre-Suasion: A Revolutionary Way to Influence and Persuade" by Robert B. Cialdini)

7. Before they are likely to change their minds, people want to be assured any decision they are being urged to make is wise.

8. Business

8.1. Fairness

8.1.1. acceptable

8.1.1.1. increasing price for additional cost is fair "misbehaving, chapter 14"

8.1.1.2. client expect the manufacturer to gain a reasonable profit, "misbehaving, chapter 14"

8.1.2. not acceptable

8.1.2.1. Deviation from status que is unfair.

8.1.2.1.1. cutting wages drives employees crazy. this is why companies lay off rather than reduce wages ,"misbehaving, chapter 14"

8.1.2.1.2. For example, the bank that started to charge its customers who use counter to motivate them to use atm machine. "misbehaving, chapter 14"

8.1.2.1.3. coke change taste, "misbehaving, chapter 14"

8.1.2.1.4. Decreasing prices are not fair, "misbehaving, chapter 14"

8.1.2.1.5. spike in goods' prices are not fair, "misbehaving, chapter 14"

8.2. Free

8.2.1. “There’s nothing more expensive than that which comes for free.”

8.3. Reciprocity

8.3.1. we are nice to people who are nice to us, and we are mean to people who are mean to us

8.3.1.1. in other words we are conditional cooperator

8.3.2. A person can trigger a feeling of indebtedness by doing us an uninvited favor.

8.3.2.1. there is a set of conditions that magnifies that force even more: when the first gift is customized, and thereby personalized, to the recipient’s current needs or preferences.

8.3.3. There is another reason as well. A person who violates the reciprocity rule by accepting without attempting to return the good acts of others is disliked by the social group.

8.3.4. technique

8.3.4.1. providing that person with a favor and then asking for one in return.

8.3.4.2. a gift to my child is a gift to me.

8.4. Unity

8.4.1. The reality of internal discomfort and the possibility of external shame can produce a heavy psychological cost.

8.4.2. People are inclined to say yes to someone they consider one of them.

8.4.3. you root for your own sex, your own culture, your own locality . . . and what you want to prove is that you are better than the other person. Whomever you root for represents you; and when he [or she] wins, you win.”

8.4.4. when engaged in an economic game with their groupmates, those who had suffered together were significantly more likely to make financial choices designed to enrich the whole group as opposed to only themselves.

8.4.5. We all admire the wisdom of those who have come to us for advice. —Ben Franklin

8.4.5.1. Providing advice puts a person in a merging state of mind, which stimulates a linking of one’s own identity with another party’s.

8.4.6. simply knowing that a member of our own group has a cross-group friend reduces our negative feelings toward the other group.

8.4.7. Those within the boundaries of “we” get more agreement, trust, help, liking, cooperation, emotional support, and forgiveness and are even judged as being more creative, moral, and humane.

8.4.8. We normally shift our beliefs and opinions to conform to others’, which we do as a way to be correct. When it comes to issues of taste, though, in clothing, hairstyles, scents, food, music and the like, there is a countervailing motivation to distance from the crowd for reasons of distinctiveness.

8.4.8.1. balance the desire to conform against the desire to demonstrate their individuality.

8.5. Liking

8.5.1. Trust

8.5.1.1. 92 percent of consumers trust product recommendations from someone they know

8.5.2. There is nothing more effective in selling anything than getting customers to believe, really believe, you like them.

8.5.3. What makes people like you

8.5.3.1. Physical Attractiveness

8.5.3.1.1. We automatically assign to good-looking individuals such favorable traits as talent, kindness, honesty, agreeableness, trustworthiness, and intelligence

8.5.3.1.2. They are better liked, better paid, more persuasive, more frequently helped, and seen as possessing more desirable personality traits and greater intellectual capacities.

8.5.3.2. Similarity

8.5.3.2.1. You can make somebody like you by using a few simple techniques: be around them to create a feeling of familiarity, point to similarities between you, mirror their behavior, do small favors for them, and show that you like them.

8.5.3.2.2. How to use it in online marketing: Use the language of your audience. Using words, phrases, and slang common to the group will work even better.

8.5.3.3. Familiarity

8.5.3.3.1. For the most part, we like things familiar to us.

8.5.3.3.2. repetition

8.5.3.4. Popularity

8.5.3.4.1. the dishes became more popular because of their popularity.

8.5.3.4.2. Uncertainty pauses action • Catalysts make things easier to try • Reduce risk by letting people experience things for themselves

8.5.3.4.3. Greg Peters disclosed the results of internal tests in which Netflix members who were told which shows were popular, then made them more so.

8.5.3.4.4. “Popularity is a data point that people can choose to use

8.5.3.5. Association

8.5.3.5.1. association with either bad things or good things will influence how people feel about us.

8.5.4. as a rule, we tend to pay attention to differences rather than similarities.

8.5.4.1. Typically, people are more ready to search for and register separations than connections.

8.5.5. example

8.5.5.1. Research shows that messages are more likely to be successful if recipients can first be made to feel positively toward the messenger.

8.5.5.2. People just don’t sue the doctors they like

8.5.6. We are phenomenal suckers for flattery.

8.5.6.1. The information that someone fancies us can be a bewitchingly effective means for producing return liking and willing compliance.

8.5.6.1.1. Individuals who worked on a digital assignment and received flattering feedback from their computer (“You seem to have an uncommon ability to structure data logically”) developed more favorable feelings toward the machine, even though they were told that the feedback had been preprogrammed and did not reflect their actual task performance. More remarkable still, they also became prouder of their performances after receiving this hollow praise.

8.5.6.2. Positive comments produced just as much liking for the flatterer when they were untrue as when they were true.

8.5.6.3. Accordingly, one particularly beneficial form of sincere flattery would be to praise people when they’ve done a good thing we’d like them to continue doing.

8.6. Framing

8.6.1. example

8.6.1.1. Take back control. The moto used to persue voters to vote. this moto uses loss aversion.

8.6.2. Narrow framing

8.6.2.1. A myopic approach of investors wherein they make investment decisions without considering the context of their entire portfolio. People affected with this bias focus their attention to specific, seemingly attractive investment options while they tend to overlook the full range of options available to them.

8.7. Gradualism

8.7.1. foot-in-the-door technique

8.8. Choice

8.8.1. too much choice

8.8.2. No choice. Being forced

8.8.2.1. why

8.8.2.1.1. people have need for freedom and autonomy

8.8.2.1.2. a need for agency and control

8.8.3. bounded option

8.8.3.1. finite amount of options maximum 2 or 3

8.8.3.2. client is choosing but I set the stage

8.9. Commitment and consistency

8.9.1. It is our desire to be (and to appear) consistent with what we have already said or done.

8.9.2. Inconsistency is commonly thought to be an undesirable personality trait. The person whose beliefs, words, and deeds don’t match is seen as confused, two-faced, even mentally ill. On the other side, a high degree of consistency is normally associated with personal and intellectual strength.

8.9.3. Once we make a choice or take a stand, we encounter personal and interpersonal pressures to think and behave consistently with that commitment. Moreover, those pressures will cause us to respond in ways that justify our decision.

8.9.4. Once we have made up our minds about an issue, stubborn consistency allows us an appealing luxury: we don’t have to think hard about the issue anymore. We don’t have to sift through the blizzard of information we encounter every day to identify relevant facts; we don’t have to expend the mental energy to weigh the pros and cons...

8.9.5. The more EFFORT that goes into a commitment, the greater its ability to influence the attitudes and actions of the person who made it.

8.9.6. Automatic consistency functions as a shield against thought

8.9.7. Self-image

8.9.7.1. what those around us think is true of us importantly determines what we ourselves think.

8.9.7.2. altering self image for persuasion

8.9.7.2.1. Further, once a person’s self-image is altered, all sorts of subtle advantages become available to someone who wants to exploit the new image.

8.9.7.2.2. It appears the commitments most effective in changing self-image and future behavior are those that are active, public, and effortful.

8.9.7.2.3. A large reward is one such external pressure. It may get us to perform certain actions, but it won’t get us to accept inner responsibility for the acts. Consequently, we won’t feel committed to them. The same is true of a strong threat; it may motivate immediate compliance, but it is unlikely to produce long-term commitment. In fact, large material rewards or threats may even reduce or “undermine” our sense of inner responsibility for an act, causing excessive reluctance to perform it when the reward is no longer present.

8.9.7.2.4. tell people their great characteristics that you want to strengthen

8.9.7.2.5. never tell people their great characteristics that you want to weaken

8.9.7.2.6. Once people have been induced to take actions that shift their self-images to that of, let’s say, public-spirited citizens, they are likely to be public spirited in a variety of other circumstances where their compliance may also be desired. And they are likely to continue their public-spirited behavior for as long as their new self-images hold.

8.9.8. types

8.9.8.1. internal

8.9.8.1.1. example

8.9.8.2. external

8.9.8.2.1. example

8.9.9. technique

8.9.9.1. Testimonial contests

8.9.9.1.1. Participants voluntarily write essays for attractive prizes they have only a small chance to win. They know that for an essay to have any chance of winning, it must include praise for the product. So they search for praiseworthy features, and they describe them in their essays

8.9.10. example

8.9.10.1. “If I put my goals down in writing and make them known to the world, I’m committed to achieving them.”

8.9.10.2. written down and publicly made commitments can be used not only to influence others in desirable ways but to influence ourselves similarly.

8.9.10.2.1. The more public our commitment, the more pressure we feel to act according to our commitment and therefore appear consistent.

8.9.10.3. The developers of the app discovered that users who exposed their calorie counts to friends lost 50% more weight than a typical user.

8.9.11. why

8.9.11.1. Most people strive for internal consistency

8.9.11.2. They want their attitudes, beliefs, and behaviors to align

8.9.11.3. When attitudes and behaviors conflict, people get uncomfortable

8.9.11.4. To reduce this discomfort, which scientists call cognitive dissonance, people take steps to bring things back in line

8.10. cognitive dissonance

8.10.1. Why

8.10.1.1. inconsistency

8.10.1.1.1. we want to create a clear picture of the world

8.10.1.2. negative consequences

8.10.1.3. Having a choice must be present for this to occur

8.10.2. Solution

8.10.2.1. change a thought

8.10.2.2. Change a behavior

8.10.2.3. add a new thought

8.10.2.4. Don't care

8.11. self control

8.11.1. commitment

8.11.2. making things harder to demotivated

8.11.3. removing the cue or trigger

8.11.4. Self control restriction is always easier sometimes in the future

8.11.4.1. I will diet tomorrow

8.12. Status quo

8.12.1. Research suggests that the potential gains of doing something have to be more than 2 times larger than the potential downsides to get people to take action. "Removing Barriers to Change, Jonah Berger"

8.12.2. default option

8.12.2.1. Significantly higher organ donors in countries that organ donation in the form were the default choice

8.12.3. why

8.12.3.1. "Inaction is easy— it requires little effort to stick with the same beliefs, little time to stick with the same policies and approaches", Catalyst

8.12.4. examples

8.12.4.1. parking my car in Vitrox at the end of parking lot

8.12.4.2. I studied Dropbox’s pricing strategy and wondered, why did they start charging at 2 gigabytes instead of 1? As I thought about it, I realized, it gave you time to use Dropbox more, and the more you used it more likely you will hit the cap and starting paying.

8.13. Extremeness aversion

8.13.1. it’s the idea that people will go to great lengths to avoid choosing an option that lays on the extremes of thinking

8.13.1.1. In essence people would rather choose the “safe option” and take a middle path than pick something on the edges of possibility.

8.14. Loss aversion

8.14.1. To overcome loss aversion, the advantages have to be at least twice as good as the disadvantages. "Removing Barriers to Change, Jonah Berger "

8.14.2. prospect theory

8.14.2.1. The prospect theory says that investors value gains and losses differently, placing more weight on perceived gains versus perceived losses.

8.14.2.2. that managers weigh potential losses more heavily than potential gains in their decisions.

8.14.2.3. it fit perfectly with the results of long-standing research showing that especially under conditions of risk and uncertainty, people are intensely motivated to make choices designed to avoid losing something of value—to a much greater extent than choices designed to obtain that thing.

8.14.2.4. If one has enough to survive, an increase in resources will be helpful but a decrease in those same resources could be fatal.

8.14.3. The way to love anything is to realize that it might be lost.

8.14.4. example

8.14.4.1. Monetary cost

8.14.4.2. Mental effort - read reviews, compare attributes, investigate alternatives

8.14.4.3. Time - to order the device, install it, learn a new system

8.14.4.4. Potential cost of regret for making the wrong choice

8.15. Scarcity

8.15.1. Less Is Best and Loss Is Worst

8.15.2. As a rule, if an item is rare or becoming rare, it is viewed as more valuable.

8.15.3. Part of the problem is that our typical reaction to scarcity hinders our ability to think.

8.15.4. The joy is not in the experiencing of a scarce commodity but in the possessing of it.

8.15.5. As opportunities become less available, we lose freedoms. And we hate to lose the freedoms we already have

8.15.5.1. when free choice is limited or threatened, the need to retain our freedoms makes us want them (as well as the goods and services associated with them) significantly more than before.

8.15.6. people see a thing as more desirable when it recently has become less available than when it has been scarce all along.

8.15.7. In fact, when a desirable item is rare or unavailable, consumers no longer base its fair price on perceived quality; instead, they base it on the item’s scarcity.

8.15.8. The weakness is, as before, an enlightened one. We know that things that are difficult to get are typically better than those that are easy to get.

8.15.9. The wisdom of offering abundant items for sale one at a time recognizes that abundance is the opposite of scarcity and, consequently, presenting an item in abundance reduces its perceived value.

8.15.10. example

8.15.10.1. that opportunities seem more valuable to us when they are less available

8.16. Endowment effect

8.16.1. People are attached to what they are doing already

8.16.1.1. Surface the cost of inactioninaction

8.16.1.2. Burning the ship

8.16.2. "while doing nothing seems costless, it’s often not as costless as it seems", Catalyst

8.16.3. solution

8.16.3.1. surface the cost of inaction

8.16.3.1.1. Everyone is worried about the risks of doing something new

8.16.3.1.2. Equally important are the risks of doing nothing

8.16.3.1.3. When the status quo is terrible, it’s easier to get people to switch

8.16.3.1.4. • When things aren’t terrible, it’s harder to get people to budge

8.16.3.2. burn the ships

8.16.3.2.1. example

8.16.3.3. frame new things as old one

8.16.4. quote

8.16.4.1. “ Good is the enemy of great… We don't have great schools, principally because we have good schools. We don't have great government, principally because we have good government. Few people attain great lives, in large part because it is just so easy to settle for a good life.” — JIM COLLINS

8.17. Reactance

8.17.1. Sometimes things are too far away

8.17.1.1. If information is in people’s zone of acceptance, they are willing to listen

8.17.1.1.1. normal people field of acceptance

8.17.1.1.2. an extremist field of acceptance

8.17.1.2. If it falls too far away, in the region of rejection, everything flips

8.17.1.3. Big changes require asking for less, not pushing for more

8.17.2. people don't like to be heared to what to do

8.17.2.1. because they want to have a sense of agency and control

8.17.3. response

8.17.3.1. Anti-persuasion radar

8.17.3.2. Avoid or ignore

8.17.3.3. Counter argue

8.17.4. solution

8.17.4.1. encourage people to persuade themselves

8.17.4.2. address objection up front

8.17.4.3. allow for agency

8.17.4.4. guide the path

8.17.4.5. highlight a gap

8.17.4.6. find the moveable middle

8.17.4.6.1. example

8.17.4.7. Ask for Less

8.17.4.7.1. Agreeing to a small, related ask moved people in the right direction

8.17.4.7.2. The final ask, which once would have been too far away, is now more likely to be within the zone of acceptance

8.17.4.7.3. Because when people move their position on the field, the regions and zones around them move with them

8.17.4.7.4. Big changes are often more like a process— slow and steady with many changes along the way

8.17.4.7.5. Asking for less is not about only asking for less, it’s about committing to that process

8.17.4.7.6. example

8.17.4.8. Ease uncertainty

8.17.4.8.1. Solution

8.17.4.8.2. The Cost of Uncertainty

8.17.5. example

8.17.5.1. do not eat tide capsul

8.17.5.2. do not smoke

8.17.5.3. do not drink

8.17.5.4. Counterarguing – thinking about all the reasons why what you are saying is wrong

8.17.5.5. The retirement fund in Swiss. Everybody signed up for the default fund. Then the fund started to use risky investment techniques. But users did not leave the fund. After a while, the fund was invested for fraud. Still, not many people leaved the fund.

8.17.6. why

8.17.6.1. Sense of freedom

8.17.6.2. Sense of control

8.18. Mental accounting

8.19. Techniques

8.19.1. door-in-the-face

8.19.1.1. The technique is a simple one that we can call the rejection-then-retreat technique

8.19.1.1.1. Suppose you want me to agree to a certain request. One way to increase the chances I will comply is first to make a larger request of me, one that I will most likely turn down. Then, after I have refused, you make the smaller request that you were really interested in all along. Provided that you structured your requests skillfully, I should view your second request as a concession to me and should feel inclined to respond with a concession of my own—compliance with your second request.

8.19.1.1.2. the second request did not have to be small; it only had to be smaller than the initial one.

8.19.1.1.3. on the rejection-then-retreat technique shows that if the first set of demands is so extreme as to be seen as unreasonable, the tactic backfires.

8.19.1.1.4. The truly gifted negotiator, then, is one whose initial position is exaggerated just enough to allow for a series of small reciprocal concessions and counteroffers that will yield a desirable final offer from the opponent.

8.19.1.1.5. use of the rejection-then-retreat tactic also engages the action of the contrast principle. Not only did the initial larger amount make the smaller one seem like a retreat, but it made that second request seem an extra measure smaller too.

8.19.1.1.6. The requester’s concession within the rejection-then-retreat technique caused targets not only to say yes more often but also to feel more responsible for having “dictated” the final agreement. Thus the uncanny ability of the rejection-then-retreat technique to make its targets meet their commitments becomes understandable: a person who feels responsible for the terms of a contract will be more likely to live up to that contract.

8.19.1.1.7. they gave the most money to the opponent who used the concessions strategy, the subjects who were the targets of this strategy were the most satisfied with the final arrangement. It appears that an agreement that has been forged through the concessions of one’s opponents is quite satisfying.

8.19.1.2. As research suggests, the rejection-then-retreat tactic increased both the number of customers’ agreements and their satisfaction with those agreements.

8.19.2. foot-in-the-door

8.19.2.1. The tactic of starting with a little request in order to gain eventual compliance with related larger requests has a name: the foot-in-the-door technique.

8.19.3. low-ball tactic

8.19.3.1. Low-balling is a technique designed to gain compliance by making a very attractive initial offer to induce a person to accept the offer and then making the terms less favorable.

8.19.3.1.1. The impressive thing about the low-ball tactic is its ability to make a person feel pleased with a poor choice.

8.19.3.2. I knew then that without the price advantage, those other reasons would not have brought me there. They hadn’t created the decision; the decision had created them.

8.20. Use you

8.21. Focous

8.21.1. "simply by asking you to consider the qualities of Canon cameras but not asking you to consider the qualities of any of its major rivals, such as Nikon, Olympus, Pentax, or Minolta." (from "Pre-Suasion: A Revolutionary Way to Influence and Persuade" by Robert B. Cialdini)

9. Catalyst

9.1. principles

9.1.1. Endowment

9.1.2. reactance

9.1.3. Distance

9.1.4. Uncertainty

9.1.5. corroborating evidence

9.2. Good change agents

9.2.1. Reactance =>reduce Endowment=> ease Distance =>shrink Uncertainty =>alleviate Corroborating Evidence => find

9.3. Question

9.3.1. Why hasn’t that person changed already?

9.3.2. What’s hindering or preventing them?

10. Stereotypes

10.1. explanation

10.1.1. he human brain has a natural tendency to categorise everything

10.1.2. At any one time, our brain is bombarded with an infinite number of stimuli. Without an efficient method of making sense of this information, our brains would become overloaded

10.2. when it happens

10.2.1. Researchers have demonstrated that individuals with a greater need for control are more likely to use stereotypes.

10.2.2. when we have limited mental resources available for making sense of our social environment, we rely more on stereotypes to make judgements and guide our behaviors

10.2.3. Reliance on stereotypes is more pronounced when we are distracted by another mentally taxing task, or when we are under emotional or physiological stress

10.3. The problems with stereotypes

10.3.1. Socially-constructed

10.3.1.1. Some stereotypes are informed generalizations about a group of people

10.3.2. Arbitrary

10.3.2.1. Stereotypes are arbitrary ways of categorising individuals.

11. bounded abilities

11.1. We can’t be expected to recognize and analyze all the aspects of each person, event, and situation we encounter in even one day. We haven’t the time, energy, or capacity for it. Instead, we must often use our stereotypes, our rules of thumb, to classify things according to a few key features and then respond without thinking when one or another of the trigger features is present.

11.2. people often believe what they prefer to believe.

11.3. will power

11.4. selfishness

11.5. self-control

11.6. Rationality