Nudge

Most restaurants have a major problem. Paying the bill. Give the bill too early, and the customer feels rushed. Too late, and they feel ignored. To solve this problem (and many more), Will Guidara turned to behavioural science. And his solution helped his restaurant become the world’s best. --- Listen to the bonus episode: ⁠https://nudge.kit.com/aeea58886f⁠ Will’s book Unreasonable Hospitality: ⁠https://amzn.to/4tPrMl8⁠ Will’s new book The Field Guide: ⁠https://amzn.to/3Orq1u0⁠ Will’s newsletter, Pre-Meal: ⁠https://www.unreasonablehospitality.com/premeal⁠ Unlock the Nudge Vaults: ⁠https://www.nudgepodcast.com/vaults⁠ Join 10,728 readers of my newsletter: ⁠https://www.nudgepodcast.com/mailing-list ⁠ Connect on LinkedIn: ⁠https://www.linkedin.com/in/phill-agnew/⁠ --- Today’s sources: Kahneman, D., Fredrickson, B. L., Schreiber, C. A., & Redelmeier, D. A. (1993). When more pain is preferred to less: Adding a better end. Psychological Science, 4(6), 401–405. Shotton, R. (2023). The illusion of choice: 16½ psychological biases that influence what we buy. Harriman House. Strohmetz, D. B., Rind, B., Fisher, R., & Lynn, M. (2002). Sweetening the till: The use of candy to increase restaurant tipping. Journal of Applied Social Psychology, 32(2), 300–309.

In 2015, the media became obsessed with one man’s attempts to grow tea in the Scottish Highlands. The BBC profiled him on the One Show. Radio reporters flocked to interview him. Even the Chinese national news agency reported his work. Tam O’Braan (as he was then known) was the first to ever sell Scottish tea, and the press went wild. Fornum and Mason bought his leaves. The Dorchester created a new Scottish tea-tasting menu. Barack Obama reportedly tried his tea, and the Queen loved it. Tam’s business started bringing in hundreds of thousands of pounds. But soon his lies began to unravel. Today, with Jaega Wise, we tell the story of the Scottish tea scandal. We explain how Tam O’Brann fooled the world and the psychology behind why so many customers believed him. --- Listen to the BBC Food Program’s show on the scandal: https://www.bbc.co.uk/programmes/m002mn01 Learn more about Jaega: https://www.jaegawise.com/ Unlock the Nudge Vaults: https://www.nudgepodcast.com/vaults Join 10,828 readers of my newsletter: https://www.nudgepodcast.com/mailing-list Connect on LinkedIn: https://www.linkedin.com/in/phill-agnew/ --- Today’s sources: Koschate-Fischer, N., Diamantopoulos, A., & Oldenkotte, K. (2012). Are consumers really willing to pay more for a favorable country image? A study of country-of-origin effects on willingness to pay. Journal of International Marketing, 20(1), 19–41. Langer, E. J., Blank, A., & Chanowitz, B. (1978). The mindlessness of ostensibly thoughtful action: The role of “placebic” information in interpersonal interaction. Journal of Personality and Social Psychology, 36(6), 635–642. Mackie, D. M., Worth, L. T., & Asuncion, A. G. (1990). Processing of persuasive in-group messages. Journal of Personality and Social Psychology, 58(5), 812–822. Maier, L., Schreier, M., Baccarella, C. V., & Voigt, K.-I. (2023). University knowledge inside: How and when university–industry collaborations make new products more attractive to consumers. Journal of Marketing. Peterson, R. A., Kim, Y., & Jeong, J. (2019). Out-of-stock, sold out, or unavailable? Framing a product outage in online retailing. Journal of Marketing Theory and Practice.

Will Guidara is the co-founder and restaurateur behind the world’s best restaurant. But Will’s not a standard restaurateur. He didn’t just focus on creating the best food. He used psychology and behavioural science to build the best experience. Listen to learn how his restaurant became #1 by using anchoring, reciprocity and many more psych principles. --- Listen to the bonus episode: https://nudge.kit.com/aeea58886f Will’s book Unreasonable Hospitality: https://amzn.to/4tPrMl8 Will’s new book The Field Guide: https://amzn.to/3Orq1u0 Will’s newsletter, Pre-Meal: https://www.unreasonablehospitality.com/premeal Unlock the Nudge Vaults: https://www.nudgepodcast.com/vaults Join 10,728 readers of my newsletter: https://www.nudgepodcast.com/mailing-list Connect on LinkedIn: https://www.linkedin.com/in/phill-agnew/ --- Today’s sources: Mukherjee, A., Smith, R. J., & Burton, S. (2021). The effect of positive anticipatory utility on product pre-order evaluations and choices. Journal of the Academy of Marketing Science, 51, 551–569. Pariyadath, V., & Eagleman, D. M. (2007). The effect of predictability on subjective duration. PLOS ONE, 2(11), e1264.

Do nine-ending prices really work? Will £9.99 sell more than £10.00? Can it be used for high-quality products? What about hedonic products? Can it be used on speed limits? For years this debate has raged on. But today on Nudge, I speak with pricing expert Dr Markus Husemann-Kopetzky to settle the argument. --- Markus’ book: https://amzn.to/46Hetcg Unlock the Nudge Vaults: https://www.nudgepodcast.com/vaults Join 10,534 readers of my newsletter: https://www.nudgepodcast.com/mailing-list Connect on LinkedIn: https://www.linkedin.com/in/phill-agnew/ --- Today’s sources: Gendall, P. (1998). Estimating the effect of odd pricing. Journal of Product & Brand Management, 7(5), 421–432. Husemann-Kopetzky, M. (2018). Handbook on the psychology of pricing: 100+ effects on persuasion and influence every entrepreneur, marketer and pricing manager needs to know. Independently published. ITN Archive. (2022, November 28). “I will not accept that it’s a highly dangerous road” (1988) [Video]. YouTube. Kim, J., Novemsky, N., & Dhar, R. (2013). Adding small differences can increase similarity and choice. Psychological Science, 24(2), 176–182. Nunes, J. C., & Park, C. W. (2003). Incommensurate resources: Not just more of the same. Journal of Marketing Research, 40(1), 26–38. Rubinstein, A., & Yee, V. (2020). The left-digit bias: When and why are consumers penny wise and pound foolish? Journal of Marketing Research, 57(3), 467–485. Schindler, R. M., & Kibarian, T. M. (1996). Increased consumer sales response through use of 99-ending prices. Journal of Retailing, 72(2), 187–199. Shotton, R. (2018). The choice factory: 25 behavioural biases that influence what we buy. Harriman House. Suwelack, T., Hogreve, J., & Hoyer, W. D. (2011). Understanding money-back guarantees: Cognitive, affective, and behavioral effects. Journal of Retailing, 87(4), 462–478. Wadhwa, M., & Zhang, K. (2015). This number just feels right: The impact of roundedness of price numbers on product evaluations. Journal of Consumer Research, 41

Today on Nudge, Professor Katie Slocombe shares how chimpanzees handle power, build alliances, and jostle for status in their troop. It’s the first time on Nudge that we’ve looked at the primate roots of leadership and influence, with plenty of insight into how we humans behave at work (and everywhere else). Don’t miss it. --- Subscribe to the Nudge Newsletter (and get a surprise gift): https://nudge.kit.com/subscribe Connect on LinkedIn: https://www.linkedin.com/in/phill-agnew/ Watch Nudge on YouTube: https://www.youtube.com/@nudgepodcast/ --- Today’s sources: Slocombe, K. E., & Zuberbühler, K. (2007). Chimpanzees modify recruitment screams as a function of audience composition. Proceedings of the National Academy of Sciences of the United States of America, 104(43), 17228–17233.Slocombe, K. E., Waller, B. M., & Liebal, K. (2011). The language void: The need for multimodality in primate communication research. Animal Behaviour, 81(5), 919–924.

16 years ago a chain of Chinese restaurants wanted to increase sales without changing the price. They didn’t change the product. The service. The chef. The food. Instead, they changed two words on their menu and increased sales by 18%. The restaurants used the advice of today’s guest on Nudge, Robert Cialdini. Today, Cialdini explains the social proof principle, sharing how changing just two words could increase your sales. --- Unlock the Nudge Vaults: https://www.nudgepodcast.com/vaults Read Cialdini’s bestseller Influence: https://amzn.to/4prHb7Y Read the new and expanded Influence: https://amzn.to/43TY0jI Read Pre-Suasion: https://amzn.to/48hA6Qr Read Yes! (Containing 60 Psyc-Marketing Tips): https://amzn.to/48ddNNf Join 10,428 readers of my newsletter: https://www.nudgepodcast.com/mailing-list Connect on LinkedIn: https://www.linkedin.com/in/phill-agnew/ --- Today’s sources: Aune, R. K., & Basil, M. D. (1994). A relational-obligations approach to fund-raising: The effects of guilt and credibility appeals on compliance. Communication Research, 21(4), 486–498. Binning, K. R., Kaufmann, N., McGreevy, E. M., Fotuhi, O., Chen, S., Marshman, E., Kalender, Z. Y., Limeri, L. B., Betancur, L., & Singh, C. (2020). Changing social contexts to foster equity in college science courses: An ecological-belonging intervention. Psychological Science, 31(9), 1059–1070. Boh, W. F., & Wong, S.-S. (2015). Managers versus co-workers as referents: Comparing social influence effects on within- and outside-subsidiary knowledge sharing. Organizational Behavior and Human Decision Processes, 126, 1–17. Borman, G. D., Rozek, C. S., Hanselman, P., & Destin, M. (2019). Reappraising academic and social adversity improves middle school students’ academic achievement, behavior, and well-being. Proceedings of the National Academy of Sciences of the United States of America, 116(33), 16286–16291. Cai, H., Chen, Y., & Fang, H. (2009). Observational learning: Evidence from a randomized natural field experiment. American Economic Review, 99(3), 864–882. Frank, R. H. (2020). Under the influence: Putting peer pressure to work. Princeton University Press. Goldstein, N. J., Cialdini, R. B., & Griskevicius, V. (2008). A room with a viewpoint: Using social norms to motivate environmental conservation in hotels. Journal of Consumer Research, 35(3), 472–482. Hallsworth, M., List, J. A., Metcalfe, R. D., & Vlaev, I. (2017). The behavioralist as tax collector: Using natural field experiments to enhance tax compliance. Journal of Public Economics, 148, 14–31. Jung, J., Busching, R., & Krahé, B. (2019). Catching aggression from one’s peers: A longitudinal and multilevel analysis. Social and Personality Psychology Compass, 13(4), e12440. Linder, J. A., Meeker, D., Fox, C. R., Friedberg, M. W., Persell, S. D., Goldstein, N. J., Knight, T. K., Hay, J. W., & Doctor, J. N. (2017). Durability of benefits of behavioral interventions on inappropriate antibiotic prescribing in primary care: Follow-up from a cluster randomized clinical trial. JAMA, 318(14), 1391–1392. Meeker, D., Linder, J. A., Fox, C. R., Friedberg, M. W., Persell, S. D., Goldstein, N. J., Knight, T. K., Hay, J. W., & Doctor, J. N. (2016). Effect of behavioral interventions on inappropriate antibiotic prescribing among primary care practices: A randomized clinical trial. JAMA, 315(6), 562–570. Murrar, S., Campbell, M. R., & Brauer, M. (2020). Exposure to peers’ pro-diversity attitudes increases inclusion and reduces the achievement gap. Nature Human Behaviour, 4(9), 889–897. Nolan, J. M. (2021). Social norm interventions as a tool for pro-climate change. Current Opinion in Psychology, 42, 120–125. Peterson, R. A., Kim, Y., & Jeong, J. (2020). Out-of-stock, sold out, or unavailable? Framing a product outage in online retailing. Psychology & Marketing, 37(4), 535–547.

I watched Home Alone and suddenly started hearing the theme tune everywhere. I thought I was going insane. But Tom Bowden-Green and Luan Wise explained that I actually fell for a fairly well-known bias. A bias you’ve almost certainly experienced as well. --- Come to Uplift Live: https://uplift-live.com/ (Use code NUDGE to get £50 off) Tom and Luan’s book: https://amzn.to/49aZnh3 Unlock the Nudge Vaults: https://www.nudgepodcast.com/vaults Join 10,428 readers of my newsletter: https://www.nudgepodcast.com/mailing-list Connect on LinkedIn: https://www.linkedin.com/in/phill-agnew/ --- Today’s sources: Costello, J. P., Garvey, A. M., Germann, F., & Wilkie, J. E. B. (2024). The Uptrend Effect: Encouraging healthy behaviors through greater inferred normativity. Journal of Marketing Research, 61(1), 110–127. Cruz, R. E., Leonhardt, J. M., & Pezzuti, T. (2017). Second person pronouns enhance consumer involvement and brand attitude. Journal of Interactive Marketing, 39(1), 104–116. Khan, U., & Dhar, R. (2006). Licensing effect in consumer choice. Journal of Marketing Research, 43(2), 259–266. Lim, S., van Osselaer, S. M., Goodman, J. K., Fuchs, C., & Schreier, M. (2024). The Starbucks effect: When name-based order identification increases customers’ store preference and service satisfaction. Journal of Retailing, 100(2), 316–329. Sahni, N. S., Wheeler, S. C., & Chintagunta, P. (2018). Personalization in email marketing: The role of noninformative advertising content. Marketing Science, 37(2), 236–258. Van Boven, L., Dunning, D., & Loewenstein, G. (2000). Egocentric empathy gaps between owners and buyers: Misperceptions of the endowment effect. Journal of Personality and Social Psychology, 79(1), 66–76. van der Meulen, M. (2022). Are we indeed so illuded? Recency and frequency illusions in Dutch prescriptivism. Languages, 7(1), 42. Zwicky, A. (2006). Why are we so illuded. Retrieved from https://web.stanford.edu/~zwicky/LSA07illude.abst.pdf

HelloFresh is one of the fastest-growing companies of the past 20 years. And it’s down to one, relatively simple behavioural science tactic. --- Subscribe to the Nudge Vaults: https://www.nudgepodcast.com/vaults See Agent Spark in action at ⁠gwi.com/spark⁠ Read Mehdi’s book: https://amzn.to/48ORuO2 Here's Medhi's website: https://tinyurl.com/ymnu6jty Sign up for my newsletter: https://www.nudgepodcast.com/mailing-list Connect on LinkedIn: https://www.linkedin.com/in/phill-agnew/ Watch Nudge on YouTube: https://www.youtube.com/@nudgepodcast/ --- Today’s sources: Buechel, E., & Li, R. (2022). Mysterious consumption: Preference for horizontal (vs. vertical) uncertainty and the role of surprise. Journal of Consumer Research, 49(6), 987–1004. Norton, M. I., Mochon, D., & Ariely, D. (2012). The IKEA effect: When labor leads to love. Journal of Consumer Psychology, 22(3), 453–460. Skinner, B. F. (1948). “Superstition” in the pigeon. Journal of Experimental Psychology, 38(2), 168–172. BBC News. (2015, August 12). The man who discovered Harry Potter [Video]. YouTube Melanie Wass. (2019, September 16). J.K. Rowling – Insights on creating Harry Potter world [Video]. YouTube.