Correct!

Research by Salisbury & Feinberg 2008 asked people to choose three chocolates to consume over the coming weeks.

People were either asked to choose all three at once (simultaneous choice) or one each week (sequential choice).

Those who had to choose all at once tended to want more variety, fearing they would tire of eating the same chocolate. The reality, of course, is by the time the next week rolls around we wish we would have stuck with our favourite!

According to the researchers people "overestimate (their need to diversity) at approximately the same rate (20%)." This is known as "Diversification Bias".

The lesson? People tend to overestimate the variety they'll actually need.

Incorrect!

Research by Salisbury & Feinberg 2008 asked people to choose three chocolates to consume over the coming weeks.

People were either asked to choose all three at once (simultaneous choice) or one each week (sequential choice).

Those who had to choose all at once tended to want more variety, fearing they would tire of eating the same chocolate. The reality, of course, is by the time the next week rolls around we wish we would have stuck with our favourite!

According to the researchers people "overestimate (their need to diversity) at approximately the same rate (20%)." This is known as "Diversification Bias".

The lesson? People tend to overestimate the variety they'll actually need.

Correct!

Research by Coulter & Coulter 2005 found price perception was altered by the relative size of number representations. 

In short, when the original ("was") price is in larger typeface and the mark-down ("now") price smaller, people perceive the message as congruent and tend to buy more. In this case, 28% more.

When the original price is smaller and the mark-down larger, this incongruence confuses people and they perceive it less favourably.

This is known as the size-congruency effect.

The lesson? Pay attention to the relative sizes of prices in your point of sale.

Incorrect!

Research by Coulter & Coulter 2005 found price perception was altered by the relative size of number representations. 

In short, when the original ("was") price is in larger typeface and the mark-down ("now") price smaller, people perceive the message as congruent and tend to buy more. In this case, 28% more.

When the original price is smaller and the mark-down larger, this incongruence confuses people and they perceive it less favourably.

This is known as the size-congruency effect.

The lesson? Pay attention to the relative sizes of prices in your point of sale.

Correct!

Research by Gneezy & Rustichini 2000 investigated whether a fine imposed for late collections from a childcare centre would act as a deterrent.

Instead of the fine reducing late-coming parents, they found the number increased significantly!

After the fine was removed no reduction occurred.

The lesson? Fines can switch-off moral behaviour. In this case, the parents went from feeling bad by imposing on the childcare workers, to feeling they were okay to be late because they were paying for it. Charging for things can change behaviour, not always in the way you had anticpated.

Incorrect!

Research by Gneezy & Rustichini 2000 investigated whether a fine imposed for late collections from a childcare centre would act as a deterrent.

Instead of the fine reducing late-coming parents, they found the number increased significantly!

After the fine was removed no reduction occurred.

The lesson? Fines can switch-off moral behaviour. In this case, the parents went from feeling bad by imposing on the childcare workers, to feeling they were okay to be late because they were paying for it. Charging for things can change behaviour, not always in the way you had anticpated.

Correct!

Research by Elmore & Urbaczewski 2019 explored how pro golfer behaviour was impacted by the perceived difficulty of a hole.

Due to an administrative quirk, the same hole at a golf course had in some years been graded a par 4 (easier), and in some years a par 5 (more difficult). Same hole, different par.

They found that in years the hole was par 4, golfers took fewer strokes than when it was par 5.

This is due to "loss aversion" - people hate to lose and try harder to avoid this pain.

The lesson? 

People respond to a subjective rather than objective reality, so it's up to you to frame expectations.

Incorrect!

Research by Elmore & Urbaczewski 2019 explored how pro golfer behaviour was impacted by the perceived difficulty of a hole.

Due to an administrative quirk, the same hole at a golf course had in some years been graded a par 4 (fewer strokes), and in some years a par 5 (more strokes). Same hole, different par.

They found that in years the hole was par 4, golfers took fewer strokes than when it was par 5 because they had only 4 strokes to play with.

This is due to "loss aversion" - people hate to lose and try harder to avoid this pain.

The lesson? 

People respond to a subjective rather than objective reality, so it's up to you to frame expectations.

Correct!

Researchers Atlas and Bartels 2018 tested the impact of how pricing messages were communicated by a US based meal delivery service.

When price was expressed as $16 per day (periodic pricing), sales increased by 77% compared to $99 per week (aggregate pricing), despite the cost per week being cheaper!

The researchers believe it is because the periodic pricing focussed buyers on the frequency of benefits.

The lesson? If yours is a product where people can imagine themselves enjoying the benefits, it may be worth considering periodic pricing. 

Incorrect!

Researchers Atlas and Bartels 2018 tested the impact of how pricing messages were communicated by a US based meal delivery service.

When price was expressed as $16 per day (periodic pricing), sales increased by 77% compared to $99 per week (aggregate pricing), despite the cost per week being cheaper!

The researchers believe it is because the periodic pricing focussed buyers on the frequency of benefits.

The lesson? If yours is a product where people can imagine themselves enjoying the benefits, it may be worth considering periodic pricing. 

Correct!

Research by Trudel, Argo & Meng 2016 found cups:

• with people's name spelt correctly were recycled 48% of the time;
• with no names were recycled 26% of the time, and
• with mispelled names were recycled only 24% of the time

This is due to what's known as "identity bias". People act differently if their identity is compromised.

The lesson? Always spell your customer's name correctly.

Incorrect!

Research by Trudel, Argo & Meng 2016 found cups:

• with people's name spelt correctly were recycled 48% of the time;
• with no names were recycled 26% of the time, and
• with mispelled names were recycled only 24% of the time

This is due to what's known as "identity bias". People act differently if their identity if compromised.

The lesson? Always spell your customer's name correctly.

Correct!

Thanks to "default bias", people tend to accept whatever the default option happens to be. In this case, taxi drivers changed the default tip payment buttons from 20% to 25%, for example, and people just went with it.

The lesson? Always consider whether and how you provide defaults for your customer.

Incorrect!

They generated more tips by changing the default amounts on the payment screen.

Thanks to "default bias", people tend to accept whatever the default option happens to be. In this case, taxi drivers changed the default tip payment buttons from 20% to 25%, for example, and people just went with it.

The lesson? Always consider whether and how you provide defaults for your customer.

Correct!

Research by Linder, Doctor, Friedberg et al 2014 monitored 204 doctors over 17 months and 21,867 visits.

They found doctors prescribed 5% more unnecessary antibiotics later in the day. Why? It is easier to prescribe than deny a patient when you are tired.

The lesson? Time of day and level of fatigue can significantly impact decision-making, so plan carefully for the state of mind you want your customer in.

Incorrect!

Research by Linder, Doctor, Friedberg et al 2014 monitored 204 doctors over 17 months and 21,867 visits.

They found doctors prescribed 5% more unnecessary antibiotics later in the day. Why? It is easier to prescribe than deny a patient when you are tired.

The lesson? Time of day and level of fatigue can significantly impact decision-making, so plan carefully for the state of mind you want your customer in.

Correct!

Research by Mason, Lee, Wiley & Ames 2013 found that buyers using a rounded number received counter offers from sellers that were 25% higher, but when they used a precise number, the counter offer was much lower (only 10-15% more).

The lesson? It is difficult to negotiate against a precise number because people assume lots of thought and calculation has gone into it.

Incorrect!

Research by Mason, Lee, Wiley & Ames 2013 found that buyers using a rounded number received counter offers from sellers that were 25% higher, but when they used a precise number, the counter offer was much lower (only 10-15% more).

The lesson? It is difficult to negotiate against a precise number because people assume lots of thought and calculation has gone into it.

Correct!

Research by Homonoff 2015 monitored 16,251 shoppers across 16 stores in Washington DC.

In stores where the bonus was offered, shoppers did not change their behaviour. They continued to use plastic and re-usable bags as they had previously.

In other stores a 5c tax was imposed on the use of plastic bags. In this case use of plastic was reduced fro 82% to 40%.

The lesson? Losses (like taxes) hurt more than gains (bonuses) feel good, so people are more likely to change their behaviour as a result.

Incorrect!

Research by Homonoff 2015 monitored 16,251 shoppers across 16 stores in Washington DC.

In stores where the bonus was offered, shoppers did not change their behaviour. They continued to use plastic and re-usable bags as they had previously.

In other stores a 5c tax was imposed on the use of plastic bags. In this case use of plastic was reduced fro 82% to 40%.

The lesson? Losses (like taxes) hurt more than gains (bonuses) feel good, so people are more likely to change their behaviour as a result.

Correct!

Research by Ernest-Jones, Nettle & Bateson 2011 found people contributed 2.76x more when a picture of eyeballs was included on the honesty box, compared to when the same box had a picture of flowers.

The lesson? People behave differently when they think they are being watched.

Incorrect!

Research by Ernest-Jones, Nettle & Bateson 2011 found people contributed 2.76x more when a picture of eyeballs was included on the honesty box, compared to when the same box had a picture of flowers.

The lesson? People behave differently when they think they are being watched.

Correct!

Research by Schwarz, Bless, Klumpp et al 1991 investigated how the ease of recall impacted self-ratings of assertiveness.

Thanks to 'cognitive fluency', when people are asked to list 6 reasons they like or are good at something, these come fairly easily.

When they are asked for a greater number of reasons, like 12, things get more difficult. This friction signals to the brain that maybe this thing isn't so good after all, and doubt starts to creep in.

The lesson? While we assume that more reasons mean something will be more convincing, it turns out you shouldn't ask customers for a long list of reasons they like you!

Incorrect!

Research by Schwarz, Bless, Klumpp et al 1991 investigated how the ease of recall impacted self-ratings of assertiveness.

Thanks to 'cognitive fluency', when people are asked to list 6 reasons they like or are good at something, these come fairly easily.

When they are asked for a greater number of reasons, like 12, things get more difficult. This friction signals to the brain that maybe this thing isn't so good after all, and doubt starts to creep in.

The lesson? While we assume that more reasons mean something will be more convincing, it turns out you shouldn't ask customers for a long list of reasons they like you!

Correct!

Research by Shu & Gneezy discovered the longer the expiry, the less likely people were to redeem their gift card.

When given 3 weeks, 31% of people redeemed their card. When given 8 weeks, this dropped to only 6%.

The lesson? On paper, more time should mean more opportunity to redeem a card (which is why the Australian Government extended the mandatory expiration fron 1 to 3 years).

In reality, people keep delaying it thinking there will always be a better time than now. When they have only 3 weeks, scarcity kicks in and they make it a priority. In short, people might say they want more time but this will work against them.

Incorrect!

Research by Shu & Gneezy discovered the longer the expiry, the less likely people were to redeem their gift card.

When given 3 weeks, 31% of people redeemed their card. When given 8 weeks, this dropped to only 6%.

The lesson? On paper, more time should mean more opportunity to redeem a card (which is why the Australian Government extended the mandatory expiration fron 1 to 3 years).

In reality, people keep delaying thinking there will always be a better time than now. When they have only 3 weeks, scarcity kicks in and they make it a priority. In short, people might say they want more time but this will work against them.

Correct!

Research by Carlson & Shu 2013 found the magic number of reasons is three.

More than that triggers skepticism - a case of "doth protest too much".

Incorrect!

Research by Carlson & Shu 2013 found the magic number of reasons is three.

More than that triggers skepticism - a case of "doth protest too much".

Correct!

Research by North, Hargreaves & McKendrick 1999 experimented with how music could prime customer behaviour.

In weeks where French music was played in a bottle shop, 77% of wine sold was French.

In weeks where German music played, 73% of wine sold was German.

When customers were asked whether music has influenced their decision, 86% said it did not affect them.

The lesson? We are all influenced by environmental cues, or "primes", even though we may not be consciously aware of them. As a business you need to pay attention to how the environment you have created is affecting your customers.

Incorrect!

Increasing a range may actualy decrease sales (paradox of choice) and to my knowledge there has not been any research on whether lighting impacts wine sales.

What we do know, thanks to research by North, Hargreaves & McKendrick 1999, is that music can prime customer behaviour.

In weeks where French music was played in a bottle shop, 77% of wine sold was French.

In weeks where German music played, 73% of wine sold was German.

When customers were asked whether music has influenced their decision, 86% said it did not affect them.

The lesson? We are all influenced by environmental cues, or "primes", even though we may not be consciously aware of them. As a business you need to pay attention to how the environment you have created is affecting your customers.

Correct!

Known as the "egg theory", sales of packet mix cake increased when customers were asked to add an egg to the process.

At first glance this doesn't really make sense - asking customers to do more should make the product less appealing.

However, adding an egg resolved a problem customers were grappling with. You see, when they had less to do they didn't feel the cake was theirs, so they were embarassed to present it as something they had made. By adding the egg, this changed and sales sky rocketed.

The lesson? Sometimes customers need to feel a sense of ownership, so it may be appropriate to give them more to do.

Incorrect!

Known as the "egg theory", sales of packet mix cake increased when customers were asked to add an egg to the process.

At first glance this doesn't really make sense - asking customers to do more should make the product less appealing.

However, adding an egg resolved a problem customers were grappling with. You see, when they had less to do they didn't feel the cake was theirs, so they were embarassed to present it as something they had made. By adding the egg, this changed and sales sky rocketed.

The lesson? Sometimes customers need to feel a sense of ownership, so it may be appropriate to give them more to do.

Correct!

Research by Meyers-Levy & Zhu 2007 sat people in a room with either a high or low ceiling and had them solve word jumbles.

When people were in a room with high ceilings they solved 'freedom' anagrams faster and 'confinement' anagrams more slowly.

The lesson? High ceilings are better for abstract, expansive thinking whereas low ceilings are better for specific, detail-oriented work.

Incorrect!

It's all about the ceiling height.

Research by Meyers-Levy & Zhu 2007 sat people in a room with either a high or low ceiling and had them solve word jumbles.

When people were in a room with high ceilings they solved 'freedom' anagrams faster and 'confinement' anagrams more slowly.

The lesson? High ceilings are better for abstract, expansive thinking whereas low ceilings are better for specific, detail-oriented work.