Consumer Behavior Exam 2

What point does the "bat-and-ball" problem illustrate?

"A bat and a ball together cost $1.10. The bat costs a dollar more than the ball. How much does the ball cost?" 50% of Princeton students failed this and said $.10 (the answer is $.05) Most judgments and decisions are based on impressions generated by our intuitions We may monitor our intuitive judgments and correct them if they seem faulty, but we often fail to monitor our judgments carefully enough

What is a heuristic?

"Mental shortcut" used in judgment and decision making Essential for living in an uncertain world, but can lead to faulty beliefs and suboptimal decisions.

Describe three examples of specific real-world marketing techniques that apply the consistency principle:

- Toy companies advertise holiday toys, under-stock them during holidays, then restock them after holidays - Companies like P&G elicit customer testimonials to create loyal customers - Charities invite people to "like" or "follow" their causes via social media to cultivate donations

In the sixth study (also Petty & Cacioppo 1984), under low involvement, participants were most persuaded when they were presented with ______________ arguments, followed by ______________ arguments, and finally ______________ arguments, again suggesting that only the ______________ of arguments influenced participants' attitudes (the ______________ of arguments didn't matter). Under high involvement, participants were roughly equally persuaded by ______________ arguments as they were by ______________ arguments.

1. 3 weak & 3 strong 2. 3 strong 3. 3 weak 4. number 5. strength 6. 3 strong 7. 3 weak & 3 strong

What are three common marketing tactics that take advantage of reference dependence (anchoring, more specifically), as described in class and in Why We Make Mistakes?

1. Advertising sale items and raising the price on non-sale items - People tend to anchor on the sale prices and do not notice that other items are more pricey 2. Multi-unit pricing (.e.g "4 for $2") - People tend to buy the number of items suggested by the anchor even though the price per unit doesn't vary based on # items purchased 3. Quantity limits (e.g. "Limit, 12 per customer) - People tend to anchor on the limit, such that they buy more items when the limit is higher

Describe the two routes to persuasion in the Elaboration Likelihood Model:

1. Central Route: - Careful scrutiny of a persuasive communication to determine the merits of the arguments - Strength of arguments determines the persuasive outcome 2. Peripheral Route - Requires little thought & relies on judgmental heuristics - Surface features of a message or its source determine the persuasive outcome

What are two ways that marketers can help consumers avoid the planning fallacy?

1. Encourage consumers to take an outside view - focus on other people's experiences AND why we might have similar experiences - focus on relevant past experiences AND why this might turn out like before 2. Consult an unbiased outside observer - observers naturally tend to take an outside view

What are two ways in which framing choices as gains versus losses affects our judgments and decisions?

1. Gain vs. Loss Frame 2. Discounts vs. Surcharges

In the fourth study (also Petty, Cacioppo, & Goldman 1981), whether the source of the message was perceived as an expert mattered more when under ______________ (high or low?) involvement, and argument strength mattered more under ______________ (high or low?) involvement.

1. low 2. high High involvement: argument strength matters more Low involvement: expertise of source matters more

Describe three tactics that marketers can do to leverage the insight that consumers are loss averse:

1. Gain vs. Loss Frames - e.g. "You'll save money by replacing the insulation in your home" vs. "You're losing money by not replacing the insulation in your home" - Loss is more motivating to get people to take action 2. Discounts vs. Surcharges - e.g. "$2.30 per gallon with 10c/gallon cash discount" vs. "$2.20 per gallon with 10c/gallon credit surcharge" - The same situation, but the surcharge is more painful because it is framed as a loss 3. Opt-in vs. Opt-out framing - People tend to retain the default or status quo, because the disadvantages fo leaving it loom larger than advantages - e.g. Countries with opt-in organ donors (check the box) have much less donors vs. countries with opt-out organ donors (uncheck the box)

What are four ways that marketers take advantage of the fact that people tend to be overconfident?

1. Golf pro shops encourage people to buy expensive clubs by having them try out the clubs on short putting greens, which make them feel more confident 2. Nutrisystem runs ads with atypical success stories, counting on the fact that people will think they are also atypical and likely to have great results 3. Gyms offer annual, monthly, and daily contracts, knowing that most people will overestimate how often they will go to the gym and get unnecessarily expensive and comprehensive plans 4. Credit cards offer low teaser interest rates followed by high rates, knowing that people will overestimate how quickly they will pay off their credit cards

Describe two biases that result from reliance on a representativeness heuristic:

1. Insensitivity to sample size - People judge samples as having similar properties to their population and do not take into consideration sample size 2. Regressive fallacy - People make predictions that expect exceptional results to continue as if the correlation between past performance and future performance is perfect, failing to account for natural fluctuations

Describe two biases that result from reliance on an availability heuristic:

1. Overclaiming - People claim more responsibility for collective endeavors than is logically possible (everyone feels that they did more than they did) - Self allocations sum to more than 100% - Why? Because one's contributions are more available than those of others 2. Ease of Recall Bias - People act based on how easy it is to think of examples, not how likely something actually is - e.g. Product quality and safety perceptions (driving vs. flying)

What five factors increase likability? Define each and provide an example of how the factor could be leveraged by marketers to increase compliance:

1. Physical Attractiveness - People are more likely to like and comply with people who are physically attractive - Halo effect: favorable impressions extend to other traits such as talent, kindness, and intelligence - e.g. Attractive models used in advertising 2. Similarity - People are more likely to like and comply with people who are similar - e.g. Brands use younger spokespeople to sell to younger people, and older spokespeople to sell to older people 3. Compliments - People are more likely to like and comply with people who compliment them - e.g. Salespeople saying "that outfit looks great on you" or giving other compliments to make people more likely to comply 4. Contact and Cooperation - People are more likely to like and comply with people who they feel are on their "team" - e.g. Good cop / bad cop 5. Conditioning and Association - People are more likely to comply when they associate the salesperson, product, or brand with things they like - e.g. Brand collaborations / licensing - e.g. Jim Bean coffee liquor has more positive association when it has Starbucks branding on it - e.g. I would be more likely to comply with / like someone wearing a Northeastern sweater because I go to the same school

What are two ways that marketers can help consumers to be better calibrated?

1. Provide clear, frequent, immediate feedback 2. Encourage consumers to construe situations in multiple ways (and consider why their own judgment of the situation may be wrong)

What are two reasons why the scarcity principle works?

1. Rareness signals value - Valuable objects are rare, so people assume that the reverse must also be true 2. Reactance - People desire things they are told they cannot have - e.g. "All the girls get prettier at closing time"

What are Cialdini's 6 Principles of Social Influence?

1. Reciprocity 2. Consistency 3. Scarcity 4. Liking 5. Social Proof 6. Authority

What are three aspects of the reciprocity principle that make it so influential?

1. Reciprocity is powerful, often more than other factors 2. Reciprocity applies even to uninvited first favors 3. Reciprocity can spur unequal exchanges

What are three reasons why the reciprocal concessions tactic (also known as the "reject-then-retreat technique" or "door-in-the-face technique") works:

1. Reciprocity: if people see the second request as a concession, they feel inclined to respond with a concession of their own 2. Perceptual Contrast: the second request appears even smaller in comparison to the larger request 3. Additional opportunities for success: we now have two chances of being successful; the first attempt with the big request and the second attempt with the smaller request

In the first study (Petty & Cacioppo 1979), under ______________ (high or low?) involvement, participants were more likely to agree with the source's position when arguments were strong and more likely to disagree with the source's position when arguments were weak. Under ______________ (high or low?) involvement, agreement did not vary as much based on argument strength.

1. high 2. low High involvement: argument strength matters more Low involvement: argument strength doesn't matter as much

In the third study (Petty, Cacioppo, & Goldman 1981), argument strength mattered more under ______________ (high or low?) involvement, and whether the source of the message was a celebrity or a regular citizen mattered more when under ______________ (high or low?) involvement. Under low involvement, when the source was a ______________ (celebrity or citizen?), participants tended to agree with the person regardless of the strength of the arguments they made. Only when the source was a ______________ (celebrity or citizen?), did the strength of the arguments matter.

1. high 2. low 3. celebrity 4. citizen

Prospect Theory offers several insights about how we construe the world. Identify and define the four insights we discussed in class:

1. Reference Point - We evaluate prospects as changes relative to a reference point - Standard of comparison which an observed price is compared 2. Diminishing Marginal Utility - We are less sensitive to each additional unit of change 3. Risk Aversion & Risk Seeking - We are risk averse when choosing among gains, and risk seeking when choosing among losses 4. Loss Aversion - We are more sensitive to losses than we are to gains

Describe two biases that result from reliance on an affect heuristic:

1. Scope Insensitivity - ## migrating birds die each year by drowning in oil ponds... how much money would you be willing to pay for the needed nets? - Turns out, people are willing to pay the same amount to save 2,000, 20,000, or 200,000 birds 2. Identifiable Victim Effect - "A death of a single Russian solder is a tragedy. A million deaths is a statistic" - People are willing to donate twice as much money to Rokia (an identifiable victim) than the masses

What are three examples of how subliminal perception works?

1. Subliminal presentation of a word will lead you to recognize that word more quickly later on 2. Subliminal exposure to adjectives can influence judgments of later targets 3. Subliminal exposure to a stimulus can lead to increased liking for the stimulus (mere exposure)

What are three factors that increase conformity?

1. The unanimity of the majority 2. The public nature of the judgments 3. The size of the group

What are three cues that signal authority? How could a person use these cues to increase the likelihood that others will perceive them as an authority?

1. Titles 2. Clothing (suit, uniform, police uniform) 3. Trappings (luxury items that convey a sense of status, such as a nice car, expensive baggage, etc.)

What are three factors that influence consumers' predictions?

1. We over-rely on our present state of being 2. We exaggerate the importance of focal events 3. We fail to anticipate adaptation

Describe three examples of how priming certain social groups can lead people to assimilate their behavior to fit the stereotype of that group:

1. When primed with politicians, people wrote longer political essays than those not primed 2. When primed with words related to the elderly, they walked more slowly than those not primed 3. People were presented with either a professor or jock and wrote about the behavior, lifestyle, looks, and attributes of the typical X. Those primed with professors did better on a trivia quiz while those primed with jocks did worse.

In the second study (Chaiken 1980), under ______________ (high or low?) involvement, participants were more persuaded by the likeable source than the unlikeable source, regardless of how many strong arguments they presented. Under ______________ (high or low?) involvement, participants were more persuaded by the source with a greater number of strong arguments, regardless of how likeable they were.

1. low 2. high Low involvement: likability mattered more High involvement: number of arguments mattered more

In the fifth study (Petty & Cacioppo 1984), under high involvement, both the ______________ and ______________ of arguments influenced participants' attitudes. Under low involvement, only the ______________ of arguments influenced participants' attitudes (the ______________ of arguments didn't matter).

1. strength of arguments 2. number of arguments 3. number of arguments 4. strength of arguments

What is an attitude?

A favorable or unfavorable evaluative reaction to something exhibited in one's beliefs, feelings, or intended behavior

Describe how marketers can leverage the insight that consumers are less sensitive to each additional unit of change:

Aggregation vs. Segregation - Losses are more acceptable when integrated and gains are more valued when segregated Aggregate losses - add shipping into cost of order - including dessert or beverage with meal - one price for whole set Segregate gains - itemize all the things you get in package (vacations, gift sets, etc.)

What are three differences between attitudes formed via the central route and those formed via the peripheral route?

Attitudes formed via the central route... 1. tend to persist longer (ex: writing an essay leads to more processing via the central route, and more attitude change 6 weeks later compared to just reading an essay) 2. are more resistant to new persuasion 3. are more predictive of behavior

What is a central cue? What sorts of central cues were utilized in the ELM research presented in lecture (i.e., how did researchers manipulate message strength in various studies)?

Central cues all come down to argument strength

Conformity increases with the size of a group up to a certain point, then levels off. At about what point does conformity level off?

Conformity increases with group size up to four people, then levels off.

How might evaluating options together vs. separately lead to focalism?

Considering alternatives side-by-side can highlight attributes that are easily comparable and lead people to focus on those attributes e.g. Looking at job offers: one might focus on a higher salary when comparing two jobs, but other aspects like work culture, job experience, commute, etc. might matter more

What is construal?

Construal: the way in which a person interprets the world around them - The same situation may produce very different behavior depending on the subjective meaning that is attached to it

What is the planning fallacy? Give an example.

Describes the tendency for people to overestimate their rate of work or to underestimate how long it will take them to get things done e.g. In 1957, the Sydney Opera House was estimated to be completed early in 1963 for $7 million. A scaled-down version of the opera house opened in 1973 at a cost of $102 million.

What is framing?

Describing the same options in different ways can lead to different preferences and choices - Both formats convey the same information - The way we construe that information is what differs e.g. "Our new fan uses 50% less energy than our old fan!" vs. "Our old fan uses twice as much energy as our new fan!"

Marketers often leverage social proof by highlighting descriptive and injunctive norms in favor of their products or brands. Define these norms, and provide an example of how each could be used to increase sales:

Descriptive norms: - "How things are" - McDonald's: Billions and billions served Injunctive norms: - "How things should be" - NFL Play60: Eat healthy. Get active. Make a difference!

What is the durability bias, what is immune neglect, and how to they relate?

Durability Bias - when we predict how long we will feel about some event, we tend to over-estimate the duration of the emotional impact Immune Neglect - tendency to overlook the important value of coping processes (our psychological 'immune' system), leading people to overestimate the intensity and duration of distress experienced in response to negative events People tend to overestimate both duration and intensity of negative events due to our biases

What is and is not a good way of debiasing individuals?

Educating consumers about how specific biases can affect them can help debias them The same warnings framed toward people in general are less effective. Similarly, warning people about susceptibility to biases in general (as opposed to specific biases) was not very effective.

What is priming, and how does it work?

Exposure to a stimulus influences a response to a later stimulus ex: Whole Foods puts flowers near the store entrance because they prime freshness ex: Whole Foods puts cardboard boxes of produce suggest it was just delivered

What is subliminal perception?

Exposure to a stimulus influences a response to a later stimulus without those affected being aware of conscious of it. We're attending to a stimulus, and something flashes so quickly that we can't consciously perceive it. Nonetheless, those who were exposed to the stimulus feel and act differently than those who were not exposed to it

What is the consistency principle?

Once we make a choice or take a stand, we feel pressure to behave consistently with that commitment

Describe three examples of the power of thin slice judgments:

Honesty / deception, emotions, relationship success, personality, teaching ratings, voting behavior, etc.

Describe the Asch's experiments, and explain what they illustrate about the influence of social proof on behavior:

In a room with others, participants were asked to judge which line length (in a group of 3) matched the given line. Other "participants" in this experiment are actually confederates, and they all start giving the wrong answers. Consequently, the lone participant started going against their own judgment to agree with the group. This is either because they felt that everyone else's answer must be right, or they didn't want to draw attention to themselves by giving a different answer.

First impressions are powerful - describe an example of the power of first impressions:

In a study, people were shown photos of candidates for Congress and asked which looked more competent. Their judgments predicted 72% of Senate and 67% of House races.

Reference points can be internally derived or externally derived. Provide three examples of each:

Internally derived - the "fair" price - the price often / most often charged - the last price you paid - the price of brand usually bought - e.g. you'd pay less for a beer at the local beach vs. at a hotel resort Externally derived - "regular retail price" - what it's placed near - how other items in the line are priced - e.g. people are willing to pay more for the same amount of ice cream when it's in a smaller cup that makes it look like there's more

What are the limitations of subliminal persuasion?

It's hard to make it subliminal for everyone - May make the stimulus too weak or too strong - Need to get people to attend to the stimulus location - Need the presentation to be just at the right distance - Can only prime a word or two - not too much info

Is making a detailed plan likely to make you more or less susceptible to the planning fallacy? Why?

Making a detailed plan makes us even more optimistic, and thus more susceptible to the planning fallacy.

What is the availability heuristic? Provide an example:

Making judgments about the frequency or likelihood of an event based on the ease with which evidence or examples come to mind

What is the representativeness heuristics? Provide an example:

Making predictions by assuming that a specific instance will be prototypical of and/or similar in essential characteristics to the general category e.g. Stereotypes of people

How can marketers increase availability?

Marketers can make recall feel easier and thus increase availability via... - Personal experience - Vividness - Recency

What two factors determine whether consumers process persuasive messages via the central or peripheral route? List three things that influence each factor:

Motivation - Personal involvement / relevance - Responsibility / accountability - Need for cognition Ability - Personal expertise - Distraction / multi-tasking - Message comprehensibility / complexity

What does the "Lipton Ice" study tell us about the limitations of subliminal persuasion?

Motivation matters: when people were thirsty already, the "Lipton Ice" prime was more effective

What normative and informational reasons for conforming?

Normative: In the service of avoiding the disapproval, scorn, or ostracism that accompanies norm violations (i.e. people don't want to be labeled as a jerk or weirdo) Informational: In the service of learning what is right or appropriate in a situation (i.e. sometimes people don't know what to do)

What is the social proof principle?

One important means that people use to decide what to believe or how to act in a situation is to look at what other people are believing or doing there

What is the scarcity principle?

Opportunities seem more valuable to use when their availabilities are limited - e.g. Companies charge more for "limited edition" products or advertise as "one-time" offers to boost sales

If, as the administer of a local nonprofit, you'd like to increase the size of incoming donation amounts, how could you design the donation form to help achieve your objective? Which would result in larger donations: ordering the options from larger donation amounts to smaller amounts or from smaller donation amounts to larger ones?

Ordering options from larger donation amounts to smaller amounts would utilize anchoring - by presenting the larger option first, donors would anchor off that amount and donate a higher amount than if anchoring off the smaller amount

What factors contribute to overconfidence?

People who are well-calibrated (not overconfident) receive feedback that is: - unambiguous - frequent - immediate In the absence of feedback, overconfidence may be fueled by: - wishful thinking - confirmation bias - hindsight bias - self-serving bias

Describe the Milgram experiments, and explain what they illustrate about the powerful influence of authority on behavior:

Participants were told by a scientist in a lab coat to administer an increasingly lethal shock to a person in another room for getting questions wrong. It found that many participants kept going along when instructed by the scientist, even when the person receiving the shocks was seemingly unconscious. This experiment was designed to reflect the situation of WWII Nazi officers and showed how people can do horrible things they typically wouldn't when instructed to do so by an authority figure.

How did researchers manipulate whether participants were motivated to process the persuasive messages via the central route (vs. the peripheral route) in the ELM research presented in lecture? Provide specific examples:

Participants who had high personal involvement to the message processed via the central route, while those with low personal involvement processed via peripheral route

What are thin slice judgments?

People can make surprisingly accurate judgments quickly and automatically. Accuracy was just as high for judgments based on less than 30 seconds of observation as those based on 3-5 minutes of observation.

People often fail to take into account the speed and extent to which they will emotionally adapt to changes in life circumstances. What are some ways in which people mis-predict adaptation?

People fail to anticipate the factors that make them more or less likely to adapt to an event 1. People adapt more quickly to unchangeable than changeable choices - people want the option to change their minds, but this makes them less happy with their choices - changeability makes people more likely to second-guess their choices rather than rationalize them - e.g. Photography example - e.g. The option to return an item makes you appreciate it less 2. People adapt more quickly to uninterrupted than interrupted experiences - people believe that commercials make them enjoy TV shows less, but they actually make them appreciate shows more - people tend to get bored, and commercials disrupt adaptation and slow down boredom 3. People adapt more quickly to material than experiential purchases - people believe that they will get more out of material purchases, but they actually get more out of experiences - the value of material items depreciate with repetition and comparisons

What is the authority principle?

People often defer to authorities in a relatively automatic fashion There is a tendency to do so in response to the mere symbols of authority rather than to its substance

What does it mean to take an "outside view" versus an "inside view?" Which perspective tends to lead to more accurate predictions?

People take an "inside view" - focus on plans and intentions and construct a best-case scenario in which the task gets done But people should take an "outside view" - they should consider others' failures - they should consider their own past failures

What is the bias blind spot? Give an example.

People tend to believe that their own judgments are less prone to bias than others' e.g. Third Person Effect: the tendency to think we are less influence than others by ads and other persuasive messages e.g. The greater in difference in opinion, the more people believe their own opinions are "valid" and others' opinions are "biased"

What is presentism?

People tend to over-rely on their present state of being when predicting how they would feel or behave when in a different state of being - e.g. Grocery shopping while hungry

How does presentism sometimes contribute to variety seeking? Provide two examples:

People think that they will want variety when they choose items all at once, when that is only true when they consume items all at once

What is the affect heuristic? Provide an example:

People's feelings often guide their decisions Vivid, relatable examples are likely to have more of an influence than cold, hard statistics

What is overconfidence? Give an example.

People's subjective confidence in their judgments is reliably greater than their objective accuracy

What is anchoring and adjustment? Provide an example:

Providing people with an externally derived reference point can lead to anchoring People base their judgments on that initial value (anchor) and adjust accordingly. But: - adjustment is often insufficient - anchors are often irrelevant

In class, we saw several examples of ads that attempted leverage the psychological process of subliminal perception to influence consumers' choices outside of their conscious awareness. Describe one of these ads:

Repeatedly flashing a frame-long image that read either "Drink Coke" or "Eat Popcorn" during a movie

What is the difference between risk aversion and loss aversion?

Risk aversion is the tendency to attempt to lower uncertainty (risk) Loss aversion is the tendency to attempt to lower losses, which can result in both risk averse and risk seeking behavior

What is a peripheral cue? What sorts of peripheral cues were utilized in the ELM research presented in lecture? Be sure specify whether those cues were features of the source of the message or features of the message itself:

Source factors: likability, attractiveness, celebrity status, expertise, perceived competence, etc. Message factors: number of arguments, length of argument, etc.

What is the "mere exposure" effect, and how does it work?

Subliminal exposure to a stimulus can lead to increased liking for the stimulus. The repeated presentation of a stimulus enhances the subjective feeling of fluency (ease) when the stimulus is encountered again. This enhanced fluency is misattributed to liking, resulting in a preference for familiar vs. new stimuli

What are two general persuasion tactics that leverage the consistency principle? For each general tactic, describe an example of an experiment that illustrates it:

Tactic #1: Foot in the door technique - Get a large favor by first getting a small one (small commitments manipulate a person's self-image and position them for a larger commitment) - e.g. Participants initially asked to sign a petition were more likely to comply with a second similar request Tactic #2: Low balling - Offer an item at a lower price than is actually intended to be charged, and after eliciting a commitment, raise the price to increase profits - e.g. Participants asked "would you be willing to participate in an experiment? Yes? Great, it's at 7 am. Are you still willing to participate" were more likely to say yes than when they were asked "would you be willing to participate in an experiment at 7am?"

What are two general persuasion tactics that leverage the reciprocity principle? For each general tactic, describe three examples of specific real-world marketing techniques that apply the tactic.

Tactic #1: Provide a person with a favor and then ask for one in return - e.g. Marketers give free samples to increase the likelihood of a purchase - e.g. Restaurant and hotel staff give mints to increase tips - e.g. Charities give small gifts to solicit donations Tactic #2: Ask for a big favor, and when the target refuses, ask for a small favor instead ("door in the face" technique) - e.g. Charities often open by asking for large donations, then "concede" by asking for smaller donations - e.g. Labor negotiators often open extreme demands, then "concede" by asking for their actual needs - e.g. Salespeople ask for referrals after being refused, which works better than asking for referrals upfront

The "foot in the door technique" is often confused with the reciprocal concessions tactic (also known as the "reject-then-retreat technique" or "door-in-the-face technique"), perhaps because both involve asking for big and small favors but in different orders. What is the difference between these two tactics?

The foot in the door technique entails asking a small favor first, which increases the likelihood of someone complying with a second bigger favor. The door in the face technique entails asking a large favor first, and when it is rejected, increases the likelihood of someone complying with a second smaller favor.

Marketers sometimes misuse descriptive norms such that they backfire. What is the right and wrong way to leverage descriptive norms?

The right way: Communicate the descriptive norm by saying what most people are doing is the good doing. Never do the opposite by communicating what most people are doing is the bad thing - this is when descriptive norms backfire.

Under what conditions is the "foot in the door technique" most effective? Provide an example of each:

This tactic is most effective when initial commitments are... Active - People are more likely to feel like they have to act consistently with something when they have actively committed to do so - e.g. Telling someone to cancel a reservation if they can't come, vs. asking "can you cancel if you can't come" (which elicits a response, making them more committed) Public - Public commitments tend to be more lasting because people care about looking consistent to others - e.g. Those who post about weight loss goals on social media are more likely to follow through on their goal Effortful - People who go through a great deal of trouble or pain to attain something tend to value it more highly than people who attain the same thing with less effort - e.g. Fraternities with hazing make members feel more committed because they went through all that effort to join already Internally motivated - People are more likely to feel like they have to behave in a consistent manner when they take inner responsibility for their actions (rather than attributing it to external incentives) - e.g. Kids were more motivated to play with markers in the future when they received a prize for doing so without being told, vs. kids who were told they would receive a prize for playing with markers

What are the characteristics of "System 1" and "System 2" processing?

Two systems of reasoning: System 1 (fast system): - "Intuitive" - Automatic - Effortless - Rapid & parallel - Concrete - Associative System 2 (slow, deliberate system): - "Reflective" - Controlled - Effortful - Slow & often serial - May be abstract - Rule based

What's a visceral state, and how might it influence how we make judgments? Provide three examples:

Visceral state: hunger, thirst, sexual arousal, drug cravings, physical pain Hunger: - Grocery shopping while hungry Thirst: - Imagine you go hiking and you're low on food and water... would it be worse to be hungry or thirsty? - More participants thought thirst would be worse than hunger when asked after working out Sexual Arousal - Compared to those in a neutral state, male college students who were assigned to a state of sexual arousal (via self-stimulation) - Rated a wide range of sexual stimuli and activities as more appealing - Reported greater willingness to engage in morally questionable behavior in order to obtain sexual gratification - Reported greater willingness to engage in unsafe sex when sexually aroused

Provide an example of visual, auditory, and olfactory priming:

Visual priming: when candy jars are clear or open (instead of opaque or closed), people are likely to eat more Olfactory priming: Participants asked to eat a crumbly cookie were neater when in a room that smelled like citrus cleaning product Auditory priming: A grocery store saw French wine sales grow when playing French music, and saw German wine sales grow when playing German music

Are we more or less likely to fall prey to the planning fallacy when we are making predictions about our own behavior or others' behavior? Why?

We are more likely to fall prey to the planning fallacy when we are making predictions about our own behavior because we tend to be overly optimistic about ourselves, while we consider other possibilities when taking an outside view.

What is the likability principle?

We are more likely to say yes to someone we know and like

What is focalism? Provide an example:

We make predictions of happiness based on our reactions to a focal event or attribute, without regard to the fact that other things matter aside from that event / attribute e.g. People tend to think that living in California would make them happy because of the warmer weather, but people in California are no happier than people living elsewhere. People focus on the climate difference, but there are other factors that affect happiness

What is the Introspection Illusion, and how does it contribute to our tendency to see bias in others but not in ourselves?

We treat conscious introspections as a sovereign source of evidence in making self assessments and give less consideration our behavior We do the opposite when assessing other people - we place less diagnostic weight on others' introspections and more weight on their behavior

What is the reciprocity principle?

We want to repay, in kind, what another person has provided us. Often, reciprocation goes above and beyond the original favor.

Why are weathermen less overconfident and better calibrated than doctors?

Weathermen get immediate, concrete feedback on their forecasts while doctors don't get feedback whether their diagnoses are correct

Describe the "Asian Disease Problem," and explain what it illustrates about how marketers can use this type of gain/loss framing to leverage the insight that consumers risk averse when choosing among gains, and risk seeking when choosing among losses:

When framed as what you have to gain (200 people will be saved), people are risk averse and choose the option that will for sure save 200 people. But when framed in terms as losses (400 people will die), people become risk seeking and take the chance to save everyone, even though there is the chance everyone will die.

Under what circumstances would you get people to do the opposite of a prime, rather than the same?

When presented with Extreme Exemplars (specific examples) instead of stereotypes, people do the opposite of the prime. "I'm smart, but I'm no Einstein"