Nathalie Nahai - 5 psychological principles of persuasive design

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Psychological Principles
5
OF

ENDOWED PROGRESS
1

http://www.notonthehighstreet.com/
1

http://www.londonreal.tv/
1

THE RESEARCH
Nunes, J. C., & Drèze, X. (2006). The endowed progress effect: How artificial advancement increases effort. Journal of Consumer Research,
32(4), 504-512.
Randomly distributed 300 loyalty cards
to customers at a car wash
1

HALF GOT THIS
32(4), 504-512.
1

THE OTHER HALF GOT THIS
32(4), 504-512.
1

1
Which had the highest redemption rate?

8 STAMPS?
32(4), 504-512.
1

10 STAMPS?
32(4), 504-512.
1

RESULTS
19%
34%
8 stamps 10 stamps
Redemptionrate
1

WHAT HAPPENED?
32(4), 504-512.
Task requiring
8 steps
1

WHAT HAPPENED?
Task requiring
8 steps
32(4), 504-512.
Task requiring
10 steps
(2 completed)
1

WHAT HAPPENED?
Reframed the task so one was
perceived as undertaken & incomplete
(rather than not yet begun)
32(4), 504-512.
1

What’s the principle?

1
People provided with
artificial advancement toward a
goal exhibit greater persistence
toward reaching that goal
“ ”
Nunes, J. C., & Drèze, X. (2006). The endowed progress effect: How artificial advancement increases effort.
Journal of Consumer Research, 32(4), 504-512.

How does it work?

CONSISTENCY
We’re naturally motivated to
complete tasks we’ve started & want to
remain consistent with previous intentions
Fox, S. & Hoffman, M. (2002). Escalation Behavior as a Specific Case of Goal-Directed Activity: A Persistence Paradigm. Basic and Applied
Social Psychology, 24 (4), 273-285.
1

PROXIMITY
The closer we are to completing a goal
the more likely we are to increase our efforts
to close the last little gap
Hull, C. L. (1932). The goal-gradient hypothesis and maze learning. Psychological Review, 39(1), 25.
1

TRIGGERS
Hull, C. L. (1932). The goal-gradient hypothesis and maze learning. Psychological Review, 39(1), 25.
Giving people a couple of free holes on a punch
card is enough to trigger both of these effects
1

WHY IT’S USEFUL
•  Increases the likelihood of task completion
32(4), 504-512.
1

WHY IT’S USEFUL
•  Decreases completion time
32(4), 504-512.
1

WHY IT’S USEFUL
•  Decreases completion time
•  Effect depends on perception of task
completion rather than a desire to avoid
wasting the endowed progress
32(4), 504-512.
1

&

IN REALITY
Kahneman, D., & Tversky, A. (1984). Choices, values, and frames. American Psychologist, 39(4), 341.
1
“ ”
Losses loom larger than gains

THIS MEANS
Kahneman, D., Knetsch, J. L., & Thaler, R. H. (1991). Anomalies: The endowment effect, loss aversion, and status quo bias. The Journal Of
Economic Perspectives, 193-206.
We feel a greater loss over something we own
than something we haven’t yet bought
1

1

This also works in gaming

Sunk-cost fallacy
2

GAMING
Players are more likely to return to look after items
they have been endowed (paid for / earned)
than goods they have simply been given
Kahneman, D., Knetsch, J. L., & Thaler, R. H. (1991). Anomalies: The endowment effect, loss aversion, and status quo bias. The Journal Of
Economic Perspectives, 193-206.
2

SUNK-COST FALLACY
Rational player:
Arkes, H. R., & Blumer, C. (1985). The psychology of sunk cost. Organizational Behavior And Human Decision Processes, 35(1), 124-140.
Kahneman, D., & Tversky, A. (1979). Prospect theory: An analysis of decision under risk. Econometrica: Journal of the Econometric Society,
263-291.
2

SUNK-COST FALLACY
Rational player: would ignore sunk-costs
263-291.
2

SUNK-COST FALLACY
Real player:
263-291.
2

SUNK-COST FALLACY
Real player: reluctant to discontinue an activity
once they’ve already put effort in
263-291.
2

Which is why this works

https://www.facebook.com/FarmVille
2

SUNK-COST FALLACY
263-291.
The sunk-cost of planting the tomatoes
increases your desire to continue the game
2

Which gives rise to yet another dynamic…

Appointment dynamic
3

APPOINTMENT DYNAMIC
http://badgeville.com/wiki/Game_Mechanics/Appointments
At a predetermined time / place user must login
or participate in the game for positive effect
3

APPOINTMENT DYNAMIC
This keeps the customer coming back for more,
creating a habitual pattern of use
3

How these work together

Endowed progress
Customer is helped to begin

Endowed progress
Consistency
Initial intention
fuels desire to
complete

Endowed progress
Consistency
Initial intention
fuels desire to
complete
Sunk-cost fallacy
Encourages further investment

Endowed progress
Appointment
dynamic
Habitual use is
reinforced
Sunk-cost fallacy
Encourages further investment
Consistency
Initial intention
fuels desire to
complete

HOW TO USE IT
•  Research what motivates your users

HOW TO USE IT
•  Give relevant initial progress for free (e.g.
points, upgrade, virtual currency / product)

HOW TO USE IT
•  Give relevant initial progress for free (e.g.
points, upgrade, virtual currency / product)
•  Use these principles to create a user
journey that encourages completion

Opportunity cost
4

4
Imagine I give you $100 to
spend as you like

4
Which of the following
would you choose?

1  You buy some clothes
4

2  You take your friends out for drinks
4

2  You take your friends out for drinks
3  You save it for a rainy day
4

HOW DID YOU DECIDE?
4
Resources are limited

HOW DID YOU DECIDE?
You probably weighed up the value of each
alternative and made a decision
4

4
Benefits forgone by
particular use of resources
“ ”
Palmer, S., & Raftery, J. (1999). Economics notes: Opportunity cost. BMJ: British Medical Journal, 318(7197), 1551.

4
What you’re giving up by making
that particular choice

THREE MAIN COSTS
1  Attention
2  Time
3  Money
4

1 - ATTENTION

ATTENTION
4.1
Attention is limited, increasingly
fragmented & highly valued

So how do you grab & hold attention?

4.1
ATTENTION
Trigger an emotional / arousal response

4.1

4.1
ATTENTION
Serve a fundamental human need

4.1
ATTENTION

ATTENTION
4.1
Create a compelling cycle of variable rewards

2 - TIME

When do you typically use the
following products?
4.2

4.2
And why?

4.2

You have to minimize TIME costs

MINIMIZE TIME COSTS
Do this by understanding:
4.2

MINIMIZE TIME COSTS
•  Your customers’ incentives for using it
4.2

INTERNET (APP) USE
Nielsen (2014). Tech-or-treat: Consumers are sweet on mobile apps, Q3 2014 Report.
http://acnielsen.Co.Uk/us/en/insights/news/2014/tech-or-treat-consumers-are-sweet-on-mobile-apps.Html
4.2

MINIMIZE TIME COSTS
•  Their usage patterns
4.2

MINIMIZE TIME COSTS
•  Their usage patterns
•  How to target specific ‘time packets’
4.2

3 - MONEY

How do these products reduce the
perceived cost of paying?
4.3

4.3

FREEMIUM
BetaBlog (2011). Roger Dickey's Tactics for Game Monetization:
http://www.gamasutra.com/blogs/BetableBlog/20111129/90708/Roger_Dickeys_Tactics_for_Game_Monetization.php
They create ‘fun pain’ by making us wait in real
time (e.g. for our city / fortress to be built)
4.3

FREEMIUM
In Sim City, to solve this pain we need to buy
‘bliss’… But how do we value ‘bliss’?
4.3

4
4.3

FREEMIUM
We can’t
Instead we have to buy gems (intermediate
currency) in exchange for ‘bliss’
4
4.3

FREEMIUM
Adding just one intermediate currency between
consumers and real money reduces our ability
to assess the value of the transaction
Gabaix, X., & Laibson, D. (2004). Shrouded attributes and information suppression in competitive markets. National Bureau of Economic
Research.
4
4.3

FREEMIUM
Allowing people to earn currency
(albeit very slowly) and offering bulk discounts
cloaks the true cost of playing
4
4.3

So, to reduce perceived cost of MONEY…

HOW TO DO IT
•  There has to be ‘fun pain’ (e.g. waiting)
4
4.3

HOW TO DO IT
•  Use an intermediate currency
4.3

HOW TO DO IT
•  Use an intermediate currency
•  Allow people to earn currency (albeit very
slowly) and offer bulk discounts
4.3

Hedonic adaptation
5

THE RESEARCH
Nelson, L. D., & Meyvis, T. (2008). Interrupted consumption: Disrupting adaptation to hedonic experiences. Journal of Marketing Research,
45(6), 654-664.
Group A
180 second massage
(total: 3 mins)
5

THE RESEARCH
45(6), 654-664.
Group B
80 second massage
20 second break
80 seconds
(total: 2 mins 40 secs)
5

Which group reported
higher satisfaction and said they
would be willing to pay more for it?
5

Group B
(the ones who had a shorter
massage & took a break)
5

5
Why?

Short break stymied their adaptation
to the pleasurable event and ‘reset’
their appreciation for it
5

THE RESEARCH
Same effect for unpleasant
experiences
45(6), 654-664.
5

THE RESEARCH
Same effect for unpleasant
experiences
If you take a break, it
sucks more
45(6), 654-664.
5

This is why bad smells
fade the longer you’re
exposed to them
5

It’s the same thing with products

5

5
“ ”
Lyubomirsky, S. (2011). Hedonic adaptation to positive and negative experiences. Oxford handbook of stress,
health, and coping, 200-224.
People become accustomed
to a positive or negative stimulus…
emotional effects of that stimulus
are attenuated over time

5
Over time, we become de-sensitized
or bored of the same thing (features,
concepts, rewards)

WE ADAPT
Hedonic adaptation applies to everything:
apps, games, products, relationships…
5

HEDONIC ADAPTATION
5

So how do we use it?

HOW TO USE IT
•  Update your product frequently
5

HOW TO USE IT
•  Change the layout / structure
5

HOW TO USE IT
•  Alter the user experience
5

HOW TO USE IT
•  Alter the user experience
•  Make the rewards unpredictable
5

KEY TAKEAWAYS

KEY TAKEAWAYS
You have to understand the
psychological triggers, biases & motivations
that drive your customers

KEY TAKEAWAYS
1  Endowed progress

KEY TAKEAWAYS
2  Sunk-cost fallacy

KEY TAKEAWAYS
3  Appointment dynamic

KEY TAKEAWAYS
4  Opportunity Cost

KEY TAKEAWAYS
4  Opportunity Cost
5  Hedonic adaptation

WEBS OF INFLUENCE
THE PSYCHOLOGY OF ONLINE PERSUASION
bit.ly/websofinfluence

DOWNLOAD THE SLIDES
bit.ly/persuasive_products

Get in touch.
ANY QUESTIONS?
@NathalieNahai
TheWebPsychologist.com

REFERENCES & FURTHER READING
1  Meyer, R. (2014). Everything We Know About Facebook's Secret Mood Manipulation Experiment. The Atlantic, June 28th:
http://www.theatlantic.com/technology/archive/2014/06/everything-we-know-about-facebooks-secret-mood-manipulation-
experiment/373648/
2  Horn, L. Study Finds Chemical Reason Behind Facebook 'Addiction'. PC Mag (2012). Available from
http://www.pcmag.com/article2/0,2817,2400011,00.asp (retrieved 17th February 2015)
3  Przybylski, A. K., Murayama, K., DeHaan, C. R., & Gladwell, V. (2013). Motivational, emotional, and behavioral correlates of fear of
missing out. Computers in Human Behavior, 29(4), 1841-1848.
4  Muise, A., Christofides, E., & Desmarais, S. (2009). More information than you ever wanted: Does Facebook bring out the green-
eyed monster of jealousy? CyberPsychology & Behavior, 12(4), 441-444.
5  Przybylski, A. K., & Weinstein, N. (2013). Can you connect with me now? How the presence of mobile communication technology
influences face-to-face conversation quality. Journal of Social and Personal Relationships, 30(3), 237-246.
6  Bavelier, D., Green, C. S., & Dye, M. W. (2010). Children, wired: for better and for worse. Neuron, 67(5), 692-701
7  Harris Interactive (2013). Mobile Consumer Habits Study. Available from:
http://pages.jumio.com/rs/jumio/images/Jumio%20-%20Mobile%20Consumer%20Habits%20Study-2.pdf (retrieved 13th March 2015)

BUT

There’s a deeper question we need to ask…

ARE WE ADDICTED?

Let’s take a quick quiz…

1
Do you ever feel preoccupied
with the internet?

2
Do you feel restless, moody,
depressed, or irritable when
attempting to cut down?

3
Do you stay online longer
than originally intended?

Have you lied to family and
friends to conceal the extent
of your internet use?
4

Do you use the internet as
a way of escaping from
problems or relieving a
dysphoric mood?
(helplessness, guilt, anxiety, depression)
5

HIDDEN PERSUADERS

HIDDEN PERSUADERS
The reason we’ve all had these
kinds of experiences is because we’re
being persuaded all the time

THE QUIZ
Diagnostic Questionnaire for internet addiction

THE QUIZ
Q: When do you think it came out?

THE QUIZ
A: Before twitter, Facebook, Whatsapp…

THE QUIZ
A: In 1998
Young, K. S. (1998). Internet addiction: The emergence of a new clinical disorder. CyberPsychology & Behavior, 1(3), 237-244.

Folks, the research is in

INTERNET (APP) USE
Nielsen (2014). Tech-or-treat: Consumers are sweet on mobile apps, Q3 2014 Report.
http://acnielsen.Co.Uk/us/en/insights/news/2014/tech-or-treat-consumers-are-sweet-on-mobile-apps.Html

And there’s an unseen impact

IMPACT
1  Mood
Facebook research1,2, FOMO3

IMPACT
1  Mood
2  Relationships
Facebook jealousy4, phone stacking5, emotional cues6

IMPACT
1  Mood
2  Relationships
Facebook jealousy4, phone stacking5, emotional cues6
3  Sex life
Disruptive checking habits7

THE RESULT?
Growing media attention & push-back:

THE RESULT?
•  Blackout productivity apps

THE RESULT?
•  Blackout vacations

THE RESULT?
•  Blackout vacations
•  Tracker- and ad-blocking software

So where does that leave us?

ETHICS
As designers, we have to decide
whether and in what way to use these
ethically in our product design

BUT
How on earth do we decide?

RISK / REWARD
•  Easier to take immediate risk for short-term
rewards

RISK / REWARD
rewards
•  Leverage heuristics with (e.g.) dark patterns

RISK / REWARD
rewards
•  Leverage heuristics with (e.g.) dark patterns
•  Blackhat practices

BALANCE
•  Short term vs. long term success

BALANCE
•  Build trust to secure & increase sales

BALANCE
•  Build trust to secure & increase sales
•  Build advocacy to boost brand salience

BUT
There’s one crucial point we’re forgetting…

WE ARE THE USER

WHERE DO YOU SIT?

WHERE DO YOU SIT?
Facilitation

WHERE DO YOU SIT?
Facilitation Coercion

INTENTION
The difference between
persuasion and manipulation is intent
Robin Dreeke, Head of the Behavioural Analysis Unit, FBI
“ ”

WHERE DO YOU SIT?
Facilitation
Persuasion
Coercion
Manipulation

WHERE DO YOU SIT?
Facilitation
Persuasion
Coercion
Manipulation
Intent

THE SILVER RULE
Do not do unto others what you
would not have them do unto you
Hillel the Elder in Talmud: Shabbat 31a
“ ”

ACCOUNTABILITY
•  Good intentions aren’t enough

ACCOUNTABILITY
•  We all need a system of checks & balances

ACCOUNTABILITY
•  We all need a system of checks & balances
•  Quality assurance is key

As designers…

You are both the
ARCHITECTS & THE USERS
of our future tech

WHAT KIND OF WORLD
do you want to build?

Nathalie Nahai - 5 psychological principles of persuasive design

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