How we became 100 AUD richer without doing anything: about mental accounting and adjustment

Five years ago when my wife and I got married (hence, she is now my wife), we received a greeting card with 100 Australian dollars from a friend of my mother who lives in Australia. Cornelia (my wife) and I never converted those 100 AUD in Euros and kept them in a safe place either as a last resort fund or, at the time naively, thinking that we will someday go to Australia and spend them there. A year and a half ago we moved from The Netherlands to the USA. As any international move, it was no walk in the park and since we were moving to a smaller apartment, we decided to ship some of our stuff to Romania (where our parents live). Moreover, after leaving The Netherlands, we made a longer vis

Beyond Nudge (Interview Prefacing my Upcoming talk at the AMSRS Conference)

Kerry Sunderland: Nick Naumof is a thought leader in applied behavioural science and author of It Makes (No) Sense – In Between the Joy of Gaining and the Fear of Losing. He describes himself as a behavioural scientist rather than a behavioural economist – while acknowledging the borders between disciplines are very permeable – because his focus is much broader than just decisions in the realm of economics. This interview was originally published on Kerry Sunderland: What can AMSRS conference delegates expect from your keynote? Nick Naumof: My presentation is titled ‘Beyond nudge: behavioural design and big context’. It’s been more than seven years since the publication of

Loss Aversion in a Package

I bought a set of two HP ink cartridges (black and color) and they came in this packaging. Even if I know that I was supposed to get two cartridges and paid for two, seeing the packaging with three slots (two with the cartridges and one empty) creates the feeling that “something is missing”. It’s like there were supposed to be three and I only got two. This packaging is a waste of materials and induces a negative affect (feeling) in clients. Why HP? Why?

Consumer Centricity: Can Brands Build One Without a Consumer Psychologist?

A dialogue between consumer psychologist Laura Zaikauskaite and myself on the topic why consumer psychologists are necessary for organizations. Identifying Key Drivers of Consumer Behavior Nick: True consumer centricity is impossible without good understanding of consumer psychology. A lot of businesses want to achieve consumer centricity, but without understanding consumer psychology (judgment, decision making, behavior etc.) it is difficult to truly be consumer centric. Much of consumer centricity is rooted in empathy (putting yourself in the customers’ shoes), empirical observation and common sense. All of these are relevant for designing businesses that focus on the buyers. Consumer psyc

The Value of a Degree Resides in Others Not Having it

Many people like and want to have degrees and certificates. Other people and organizations prefer people who have degrees and certificates over those who don’t or have fewer of them. We like to believe that the value of such a document comes from the fact that it indicates (certifies) some qualities, skills, and knowledge of its owner. This is, to a very large extent, true. At the same time: The value of a degree (certificate) comes from the fact that others don’t have it. This statement does not conflict with a degree’s (certificate’s) role of indicating skills, abilities, knowledge etc. Imagine that a country would decide to issue certificates that attest a highly important ability for any

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