Download - Open Brand Summit: Dan Ariely
Branding
A view from a Behavioral Economics perspective
Choice Architecture
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Denmark
Netherl
ands
United K
ingdom
German
y
Austria
Belgium
France
Hungary
Poland
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Sweden
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Johnson & Goldstein (2003)
Time Discounting
Now
Des
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Nextweek
Now
Des
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Nextweek
Now
Des
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Nextweek
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Des
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Nextweek
Nextyear
Year&week
Now
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Nextyear
Year&week
Choice Architecture+
Time Discounting=
Trivial decision
Significant decision
Trivial decision
Significant decision
Trivial decision
Emot
iona
l
Significant decision
Trivial decision
Emot
iona
lEm
otio
nal
Significant decision
Trivial decision
Emot
iona
lEm
otio
nal
Com
puta
tiona
l
Significant decision
Trivial decision
Emot
iona
lEm
otio
nal
Com
puta
tiona
l
Significant decision
Trivial decision
Emot
iona
lEm
otio
nal
Com
puta
tiona
l “Emotional computation”
Significant decision
Trivial decision
Emot
iona
lEm
otio
nal
Com
puta
tiona
l “Emotional computation”
Significant decision
Trivial decision
Emot
iona
lEm
otio
nal
Com
puta
tiona
l “Emotional computation”
External SignalingSelf Signaling
Signaling
Signaling
SignalingTo others
SignalingTo others
SignalingTo others To self
Significant decision
Trivial decision
Emot
iona
lEm
otio
nal
Com
puta
tiona
l “Emotional computation”
Social coordination
Social coordination
Significant decision
Trivial decision
Emot
iona
lEm
otio
nal
Com
puta
tiona
l “Emotional computation”
Expectations
Expectations
Expectations
Significant decision
Trivial decision
Emot
iona
lEm
otio
nal
Com
puta
tiona
l “Emotional computation”
Fluency
Fluency
Significant decision
Trivial decision
Emot
iona
lEm
otio
nal
Com
puta
tiona
l “Emotional computation”
Reward Substitution
Reward substitution
Significant decision
Trivial decision
Emot
iona
lEm
otio
nal
Com
puta
tiona
l “Emotional computation”Habits
Habits
Significant decision
Trivial decision
Emot
iona
lEm
otio
nal
Com
puta
tiona
l “Emotional computation”Habits
External SignalingSelf Signaling
Signaling
Social coordination
Expectations
Fluency
Reward Substitution
Other forces• Defaults*
• Emotions*
• Spotlight effect
• Conceptual consumption
• Price quality inference
• Encoding / Retrieval Match
• Elimination by aspects
• Habits
The spotlight effect
The spotlight effect
Final words• Branding taps many aspects of human decision
making
• Not all brands and not all products tap the same psychological mechanisms
• Understanding where your brand falls on the “significance / computational map” is a crucial first step*
• Once you understand your brand’s location -- it should be clearer what actions you should take!