๐Ÿ’Ž How Smirnoff created the appearance of popularity at launch

PYOTR SMIRNOV came into this world on the eve of the birth of Russian capitalism and, in 1864, employed that capitalist spirit to make what would eventually be the world’s number one selling vodka brand, now known as Smirnoff. Pyotr was the first to use the charcoal filtering process that removes impurities from the grain-neutral spirit. He was also the first to “advertise.”

While organized publicity was still a vague concept, Smirnov shrewdly gathered a group of beggars, offered them a warm meal and plenty to drink at his home, then paid them to pop into Moscow’s major bars demanding Smirnoff. The man was a PR genius far ahead of his time. No wonder he became the official vodka supplier to the tsar in 1886.

Excerpt from: The 12 Bottle Bar: Make Hundreds of Cocktails with Just Twelve Bottles by David Solmonson and Lesley Jacobs Solmonson

๐Ÿ’Ž On progress being made when you’re prepared to accept a decline in a metric others aren’t

The shift towards 3-point shots had broad consequences for overall basketball tactics. But without the original and founding insight โ€“ that the game had been too cautious in accepting the increased risk of missing the shot altogether โ€“ there would have been no great leap forward. Whenever someone innovates in business or in life,’ argues the poker player Caspar Berry, ‘they almost inevitably do so by accepting a negative metric that other people are unwilling to accept.’ (My emphasis.)

Excerpt from: Making Decisions: Putting the human back in the machine by Ed Smith

๐Ÿ’Ž On safety measures causing people to take more risks

Economists call this excessive risk-taking when you know you’ll be bailed out ‘moral hazard’. To reduce moral hazard on the road, the economist Gordon Tullock once argued that instead of mandating seat belts, the government should require large spikes to be installed in the centre of steering wheels – known as Tullock spikes. These spikes would make drivers more aware of the danger of driving too fast. The Bank of England doesn’t quite do that.

Excerpt from: Canโ€™t We Just Print More Money?: Economics in Ten Simple Questions by Rupal Patel and Jack Meaning

๐Ÿ’Ž On the importance of avoiding black and white thinking

The physicist Richard Feynman put it like this: ‘Statements of science are not of what is true and what is untrue, but statements of what is known to different degrees of certainty … Every one of the concepts of science is on a scale graduated somewhere between, but at neither end of, absolute truth and absolute falsity.’

Excerpt from: Making Decisions: Putting the human back in the machine by Ed Smith

๐Ÿ’Ž On the benefit of willing yourself into a state of relative indifference when it comes to negotiations

This is connected with the art of negotiation. The game theorist John Nash demonstrated that protagonists bargain more effectively when they are less needy. The less you fear not getting what you want, the more likely you are to get what you want. The logical conclusion follows: in any negotiation, your best strategy is an internal as well as external question. Can you ‘will’ yourself into a state of relative indifference, and thereby negate anxiety-induced neediness?

Excerpt from: Making Decisions: Putting the human back in the machine by Ed Smith

๐Ÿ’Ž On the problem with teaser headline (we don’t care)

Which headlines work best?

When a big US advertising agency tested headlines for print ads, they ran the same ad with three different headlines. One delivering news, one promising a benefit and one arousing curiosity, Which do you think out-pulled the others? (The answer’s in the following text box.)

The benefits headline performed best.

When I ask delegates on a writing workshop to vote, they usually go for the teaser headlineโ€”the one arousing curiosity. I guess the thinking is, people are naturally curious so if you set them a puzzle, they’ll want to find out the answer. Here’s why that reasoning doesn’t stack up in the real world.

If you write a headline like this one:

Why are freelance copywriters like dried apricots?

Most people’s reaction is, “I don’t know and I don’t care.”

You have to remember that for print advertising, your ad will be nestling among editorial, ie all that stuff your reader paid for and wants to mad. Why should they stop doing what they want to doโ€”reading about cars or hi-fi, for example–just so they can solve your little puzzle? If people want puzzles, they do Sudoku.

If, on the other hand, you write a headline like this one:

How this freelance copywriter can help you double your sales

I think they’ll want to know more.

Excerpt from: Write to Sell: The Ultimate Guide to Great Copywriting by Andy Maslen

๐Ÿ’Ž On how adding a little bit of effort into learning increases probability of remembering

In one study published in 2014, researchers from Princeton and UCLA examined the relationship between learning and disfluency by looking at the difference between students who took notes by hand while watching a lecture and those who used laptops. Recording a speaker’s comments via longhand is both harder and less efficient than typing on a keyboard. Fingers cramp. Writing is slower than typing, and so you can’t record as many words. Students who use laptops, in contrast, spend less time actively working during a lecture, and yet they still collect about twice as many notes as their handwriting peers. Put differently, writing is more disfluent than typing, because it requires more labor and captures fewer verbatim phrases. tale When the researchers looked at the test scores of those two groups, however, they found that the hand writers scored twice as well as the typists in remembering what a lecturer said.

Excerpt from: Smarter Faster Better: The Transformative Power of Real Productivity by Charles Duhigg

๐Ÿ’Ž On how, once we decide upon a way of thinking, we struggle to see the other side

One important study of the power of such decision-frames was published in 1984, after a researcher from Northwestern asked a group of participants to list reasons why they should buy a VCR based on their own experiences. Volunteers generated dozens of justifications for such a purchase. Some said they felt a VCR would provide entertainment. Others saw it as an investment in their education or a way for their families to spend time together. Then those same volunteers were asked to generate reasons not to buy a VCR. They struggled to come up with arguments against the expenditure. The vast majority said they were likely to buy one sometime soon.

Next, the researcher asked a new group of volunteers to come up with a list of reasons against purchasing a VCR. No problem, they replied. Some said watching television distracted them from their families. Others said that movies were mindless, and they didn’t need the temptation. When those same people were then asked to list reasons for buying a VCR, they had trouble coming up with convincing reasons to make the purchase and said they were unlikely to ever buy one.

What interested the researcher was how much each group struggled to adopt an opposing viewpoint once they had an initial frame for making a decision. The two groups were demographically similar. They should have been equally interested in buying a VCR. At to very least, they should have generated equal numbers of reasons to buy or spurn the machines. But once a participant grabbed on to a decision-making frameโ€”This is an investment in my education verses this is a distraction from my family

Excerpt from: Smarter Faster Better: The Transformative Power of Real Productivity by Charles Duhigg

๐Ÿ’Ž On the illusion of progress being a motivating factor to continue (a diet)

One place to start is to highlight ways people already agree or are already moving on in the desired direction. One diet and exercise book cleverly leverages this idea. Rather than starting off by trying to convince people to be healthier, the author points out that this is something they already want: “Congratulations! Whether you realize it or not, simply by picking up this book you have taken the first of what I hope will be many steps, both large and small, simple and challenging, toward the most rewarding journey of allโ€”the road to reclaiming your physical health, well-being, and happiness.” By pointing out ways people are already on board, the author encourages readers to see their position on the field as closer to the end goal. Which makes them likely to stick around for the next phase of the journey (Greene, 2002, p. 9).

Excerpt from: Catalyst by Jonah Berger

๐Ÿ’Ž On people we think of as exceptionally creative (essentially being intellectual middleman)

Modern bike helmets exist because a designer wondered if he could take a boat’s hull, which can withstand nearly any collision, and design it in the shape of a hat. It even reaches to parenting, where one of the most popular baby booksโ€”Benjamin Spock’s The Common-Sense Book of Baby and Child Care, first published in 1946โ€”combined Freudian psycho-therapy with traditional child-rearing techniques.

“A lot of the people we think of as exceptionally creative are essentially intellectual middlemen,” said Uzzi. “They’ve learned how to transfer knowledge between different industries or groups. They’ve seen a lot of different people attack the same problems in different settings, and so they know which kinds of ideas are more likely to work.”

Within sociology, these middlemen are often referred to as idea or innovation brokers.

Excerpt from: Smarter Faster Better: The Transformative Power of Real Productivity by Charles Duhigg

๐Ÿ’Ž On the downside of working from home (the spread of new ideas from weak ties)

In the 1970s, sociologist Mark Granovetter suggested that information could spread further through acquaintances than through close friends. This was because friends would often have multiple links in common, making most transmission redundant. ‘If one tells a rumor to all his close friends, and they do likewise, many will hear the rumor a second and third time, since those linked by strong ties tend to share friends.’ He referred to the importance of acquaintances as the ‘strength of weak ties’: if you want access to new information, you may be more likely to get it through a casual contact than a close friend.’

Excerpt from: The Rules of Contagion: Why Things Spread — And Why They Stop by Adam Kucharski

๐Ÿ’Ž On analysing successful brands and looking for a recipe for success (is often misleading)

A quick hypothesis: say one million monkeys speculate on the stock market. They buy and sell stocks like crazy, and, of course, completely at random. What happens? After one week, about half of the monkeys will have made a profit and the other half a loss. The ones that made a profit can stay; the ones that made a loss you send home. In the second week, one half of the monkeys will still be riding high, while the other half will have made a loss and are sent home. And so on. After ten weeks, about 1,000 monkeys will be left — those who have always invested their money well. After twenty weeks, just one monkey will remain — this one always, without fail, chose the right stocks and is now a billionaire. Lets call him the success monkey.

How does the media react? They will pounce on this animal to understand its “success principles”. And they will find some: perhaps the monkey eats more bananas than the others. Perhaps he sits in another corner of the cage. Or, maybe he swings headlong through the branches, or he takes long, reflective pause while grooming. He must have some recipe for success, right? How else could he perform so brilliantly? Spot-on for twenty weeks — and that from a simple money? Impossible!

Also known as: Outcome Bias.

Excerpt from: The Art of Thinking Clearly by Rolf Dobelli

๐Ÿ’Ž On the power of loss aversion in healthcare (increased awareness)

For this reason, if you want to convince someone about something, don’t focus on the advantages; instead highlight how it helps them dodge the disadvantages. Here is an example from a campaign promotion breast self-examination (BSE): two different leaflets were handed out to women. Pamphlet A urged: “Research shows that women who do BSE have an increased change of finding a tumour in the early, non treatable stage of the disease”. Pamphlet B said: “Research shows that women who do not do BSE have a decreased chance of finding a tumour in the early, more treatable stage of the disease.: The study revealed that pamphlet B (written in a “loss-frame”) generated significantly more awareness and BSE behaviour than pamphlet A (written in “gain-frame”).

Excerpt from: The Art of Thinking Clearly by Rolf Dobelli

๐Ÿ’Ž On giving the story a face (statistics donโ€™t stir us, people do)

In another experiment, psychologist Paul Slovic asked people for donations. One group was shown a photo of Rokia from Malawi, an emaciated child with pleading eyes. Afterward, people donated an average of $2.83 to the charity (out of $5 they were given to fill out a short survey). The second group was shown statistics about the famine in Malawi, including the fact that more than three million malnourished children were affected, The average donation dropped by 50%. This is illogical: you would think that people’s generosity would grow if they know the extent of the disaster. But we do not function like that. Statistics don’t stir us; people do.

The media have long known that factual reports and bar charts do not entice readers. Hence the guideline: give the story a face.

Excerpt from: The Art of Thinking Clearly by Rolf Dobelli

๐Ÿ’Ž On why we often, mistakenly, think the past was a golden age (we just forgot about all the shitty shit)

This argument — for example, “Why isn’t music as good as it used to be?” — reflects a historical selection bias, one colorfully described by the designer Frank Chimero. “Let me let you in on a little secret,” he writes. “If you are hearing about something old, it is almost certainly good. Why? Because nobody wants to talk about shitty old stuff, but lots of people still talk about shitty new stuff, because they are still trying to figure out if it is shitty or not. The past wasn’t better, we just forgot about all the shitty shit.”

Excerpt from, You May Also Like: Taste in an Age of Endless Choice by Tom Vanderbilt

๐Ÿ’Ž On the danger of interpreting data at face value (Alex Ferguson’s mistake selling Jaap Stam)

Another example, this time involving Manchester United manager, Sir Alex Ferguson, didn’t have such a happy ending. Opta data showed that his star defender, Jaap Stam, was making fewer tackles each season. Ferguson promptly offloaded him in August 2001 to Lazio — keen to earn a high transfer fee before the decline became apparent to rival clubs.

However, Stam’s career blossomed in Italy and Ferguson realised his error — the lower number of tackles was a sign of Stam’s improvement, not decline. He was losing the ball less and intercepting more passes that he needed to make fewer tackles. Ferguson says selling Stam was the biggest mistake of his managerial career. From then on he refused to be seduced by simplistic data.

These criticisms don’t mean you should disregard tracking data. Expecting any methodology to be perfect is to burden it with unreasonable expectations. Instead, you need to be aware that it merely provides evidence to which you need to apply your discretion and judgement.

Excerpt from: The Choice Factory: 25 behavioural biases that influence what we buy by Richard Shotton

๐Ÿ’Ž On changing the subjective experience rather than the objective reality (Houston airport baggage waiting times)

In the early 2000s, the management at Houston airport was dismayed by the number of passenger complaints it was receiving.

The main issue was delays at the baggage carousel: by this point passengers were often at the end of their tether and even trivial delays tested their patience.

In response, the airport approved a hefty budget for more baggage handlers. At first, the cash looked well spent as waiting times dropped to eight minutes, about average for an airport. But complaints remained stubbornly high.

The authorities considered hiring more baggage handlers but that was prohibitively expensive. Instead, the managers took a psychological approach: they focused on improving the subjective experience rather than the objective reality.

One fact they had discovered earlier became key: people spent about a minute walking to the carousel and eight minutes waiting. The authorities re-routed passengers after passport control so they had to walk further. This meant they spent about eight minutes walking to the carousel and just a minute waiting.

Even though the time they picked up their bags was the same, complaints plummeted. In the words of Alex Stone, who reported on the Houston redesign for the New York Times, โ€œthe experience of waiting is defined only partly by the objective length of the waitโ€. What matters more is perception and an unoccupied wait feels far longer than an occupied one.

Excerpt from: โ€˜Customer experience is as much about perception as realityโ€™ in Marketing Week

๐Ÿ’Ž On anchoring in practice (at Apple)

The same approach can be used to communicate initial product value. Steve Jobs used anchoring during the launch of the Apple iPad to such effect. At one of his fames launch presentations, he introduced the “rumoured cost” that was speculated to be $999. This information anchored the press to the notion this would be the high-priced product. However, when Jobs later in the event revealed the iPad to be priced at $499, this “anchoring and reveal” tactic created a notion of value for money.

Excerpt from: Northstar

๐Ÿ’Ž On the more we see a statement, the more likely we are to believe it’s true (illusion-of-truth effect)

Another real-world manifestation of implicit memory is known as the illusion-of-truth effect: you are more likely to believe that a statement is true if you have heard it before – whether or not it is actually true. In one study, subjects rated the validity of plausible sentences every two weeks. Without letting on, the experimenters snuck in some repeat sentences (both true and false ones) across the testing sessions. And they found a clear result: if subjects had heard a sentence in precious weeks, they were more likely to now rate it as trie, even if they swore they has never heard it before.

Excerpt from; Incognito: The Secret Lives of the Brain by David Eagleman

๐Ÿ’Ž On the myth that talent alone is enough (the Beatles were not an overnight success)

To the USA, the Beatles were an overnight success, but in fact Lennon and McCartney had been playing together since 1957. In the clubs of Hamburg they performed/endured live non-stop shows for eight hours a day, seven days a week until two o’clock in the morning, and had to work incredibly hard to attract audiences from the many clubs in Hamburg competing for attention. Their abilities and confidence increased. By 1964 they had played roughly 1,200 times, totalling thousands of hours’ playing time, more than most rock bands play there entire careers. Those hours performing set the Beatles apart. They were addicted to practice, yet their rehearsing was not repetitive but adventurous. They didn’t play the classic rock songs of the time over and over until they sounded exactly like the originals, as other bands did; they experimented and improvised, constantly embellishing the standards until they made them their own. They understood there was nothing to be gained from mechanical reputation.

Excerpt from; The Art of Creative Thinking: 89 Ways to See Things Differently by Rod Judkins

๐Ÿ’Ž On the power of accountability (to reduce littering)

A writer at out agency, Rob DeCleyn, found another great example of choice architecture in his local paper.

A village in Kent had a problem with litter.

Sweet wrappers, crisp packers, soft drink cans and bottles were strewn all over the streets.

But the local shopkeeper didn’t complain or nag the children.

He just wrote their name on the crisp and sweet packets when they bought them.

That’s all, just the child’s name.

And the litter problem cleared up almost immediately.

That’s choice architecture.

The children could still choose to throw their wrappers in the street.

They didn’t have to put them in the litter bin.

The only difference was that now everyone would know whose litter it was.

Excerpt from:ย One Plus One Equals Three: A Masterclass in Creative Thinking by Dave Trott

๐Ÿ’Ž On the power of expectations to shape our experience of products (you taste what you expect to taste)

Pour a bottle of Gallo into an empty 50-year-old bottle of French Burgundy. Then carefully decant a glass in front of a friend and ask for an opinion.

You taste what you expect to taste.

Blind taste testings of champagne have often ranked inexpensive California brands above French ones. With the labels on, this is unlikely to happen.

You taste what you expect to taste.

Were it not so, there would be no role for advertising at all. Were the average consumer rational instead of emotional, there would be no advertising. At least not as we know it today.

Excerpt from:ย Positioning: The Battle for Your Mind by Al Ries

๐Ÿ’Ž On reducing anti-social behaviour (by making the alternatives more fun)

[…] in 2004, Preston council in Lancashire started to use boards with a peelable plastic film that could be cleaned every day and announced that the board helped reduce gum litter in the town by nearly 80 per cent. In the first year of their use Luton, Bedfordshire, the boards collected in excess of 75,000 pieces of used gum would otherwise have probably ended up on the pavement.

Excerpt from: One Step Ahead: Notes from the Problem Solving Unit by Stevyn Colgan

๐Ÿ’Ž On the Illusory Superiority Bias (we’re unduly negative when assessing others)

Second, more generally, we’re unduly negative when assessing others. That is, we suffer from an ‘illusory superiority bias’: we tend to think that we’re better than the average person when considering positive traits. Experiment after experiment has shown we rate our relationship happiness, leadership skills, IQ and popularity higher than those of our peers. Eight in ten of us deem our driving ability to be better than the average. To see how pervasive the illusory superiority bias is, we took a large, representative sample of the population in one of our surveys and asked half of the people what their chances were of being involved in a road accident, as either a road user of pedestrian, in the coming year, and asked the other half what the other’ chances were. There was a big difference. 40% in the first group picked the lowest probability option, while only 24% in the second group picked that option for others.

Excerpt from: The Perils of Perception Why Weโ€™re Wrong About Nearly Everything by Bobby Duffy

๐Ÿ’Ž On how constraints can inspire (rather than hinder creativity)

Dr Seuss’s editors bet him he couldn’t write a book with a limit of only fifty different words. Dr Seuss won the bet and in the process produced one of the highest-selling children’s books of all time Green Eggs and Ham. Van Gogh used a maximum of six colours when waiting. Picasso focused on one colour during his Blue Period. They imposed these limitations on themselves. They needed a framework, but it was their framework, one that suited them.

Excerpt from:ย The Art of Creative Thinking by Rod Judkins

๐Ÿ’Ž On the danger of uncritically listening to claimed data (you’ll be misled)

If Rudder’s study hunted at lying, the National Survey of Sexual Attitudes and Lifestyle (NATSAL) categorically confirms it. The survey, conducted among 15,000 respondents by UCL and the London School of Hygiene and Tropical Medicine, is the gold standard of research. In 2010 it found that British heterosexual women admit to a mean of eight sexual partners, compared to twelve for men. The difference is logically impossible. If everyone is telling the truth the mean for each gender must be the same.

All of this foes to show that advertisers trying to understand their customers have a problem: if they listen uncritically to consumers, they’ll be misled.

Excerpt from: The Choice Factory: 25 behavioural biases that influence what we buy by Richard Shotton

๐Ÿ’Ž On winning back productive time (by banning talk of bike sheds)

โ€œBike-sheddingโ€ comes from a story by C. Northcote Parkinson (he of Parkinsonโ€™s Law). He tells the tale of a committee that has to approve the plans for a nuclear power station. Since they know very little about nuclear power stations they talk about it briefly and then just approve the recommendation put in front of them. Next they have to approve the plans for a bike shed. They all know about bike sheds. Theyโ€™ve all seen one and used one. So they talk about the bike shed for hours, arguing about construction methods and paint choice and everything. This is why bike-shedding is also known as The Law of Triviality: โ€œmembers of an organisation give disproportionate weight to trivial issuesโ€. Iโ€™m sure this observation is familiar to you. Most branding conversations seem, to me, to be one long bike-shedding session. Itโ€™s not so terrible, itโ€™s human nature. The difference is that software people have identified and named the pattern. That naming is an organisational hack that allows them to break out of it and get on with something more useful. (See also: Fredkinโ€™s Paradox)

Excerpt from: The Marketing Society print title Market Leader

๐Ÿ’Ž On how poorly set targets lead to unintended consequences (Dead Sea scrolls to company boards)

In 1947, when the Dead Sea scrolls were discovered, archaeologists set a finder’s fee for each new parchment. Instead of lots of extra scrolls being found, they were simply torn apart to increase the reward. Similarly, in China in the nineteenth century, an incentive was offered for finding dinosaur bones. Farmers located a few on their land, broke them into pieces and cashed in. Modern incentives are no better: company boards promise bonuses for achieved targets. And what happens? Managers invest more energy in trying to lower the targets than in growing the business.

Excerpt from:ย The Art of Thinking Clearly by Rolf Dobelli