Fun Theory

Nudging works better in improving welfare as we are a bit irrational in our decision making process. We strive for the best, but we are imperfect, emotional, influenced by context, shortsighted, inconsistent and cognitively lazy.


To Think About
Education can only show the rational path, while nudging helps us make a good decision, partly unconsciously. You may find more examples here: www.thefuntheory.com.

Source: An Initiative of Volkswagen (2009). "Fun Theory - Piano Stairs". Retrieved from YouTube on Nov 11, 2013

Google Generation

If you have ever wondered whether kids today are better with technology compared to adults, a study commissioned by British Library and Joint Information Systems Committee (JISC) may help you shed some light on this particular question. The research was carried out in 2008 and aimed to identify how specialist researchers of the future, currently in their school or pre-school years, are likely to access and interact with digital resources in five to ten years' time.

In this context, Google generation is defined by those born after 1993, who are growing up in a world dominated by internet. The name refers to their port of call for knowledge, which is the internet and the search engine (Google being the most popular), in contrast to that of previous generations that gained their knowledge through books and conventional libraries.

The study concluded that young people today:
  • are more competent with technology, but the majority tend to use simpler applications and fewer facilities than one might expect;
  • prefer interactive systems and turn away from being passive consumers of information, television and newspapers consumption being in decline;
  • opt for visual information versus text;
  • are a cut-and-paste generation;
  • spend little time in evaluating information, either for relevance, accuracy or authority;
  • have a poor understanding of their information needs and thus find it difficult to develop effective search strategies.
The debate is still open for other aspects:
  • the shift to digital forms of communication - the current popularity of texting might be influenced by its relatively low cost compared to voice;
  • multitasking in all areas of life - parallel processing skills might develop better as result of being exposed to online media early in life, but there is no evidence whether sequential processing abilities necessary for ordinary reading are being similarly developed;
  • the expectation to be entertained by formal learning - information media must be interesting or they will fail to use it, but enhanced interest might impede the absorption of information.
Also it's worth being aware about the myths that surround the Google generation:
  • their information needs must be fulfilled immediately: no evidence suggests that young people are more impatient in this regard;
  • they need to feel constantly connected to the web: research shows that factors specific to the individual, personality and background are more significant than generation;
  • they prefer quick information in the form of easily digested chunks, rather than full text: deep log studies show that, form undergraduates to professors, people exhibit a strong tendency toward shallow, flicking behavior in digital libraries;
  • they are expert searchers: the literature in the past 25 years show no improvement in young people's information skills. 

To Think About
Knowing how to use Facebook doesn't build proficient information skills.

Source: UCL (2008). "A ciber briefing paper. Information behavior of the researcher of the future". Retrieved from http://www.jisc.ac.uk on Nov 10, 2013

The Mid-Size Coffee Cup

Options tend to get chosen more often when they are the compromise alternative in a choice set.

Imagine that it's already half past eight in the morning and you should have been on your way to the office. There is no time to prepare the usual coffee and have a croissant. You must hurry to the bus station. Luckily, the bus has no delay and you are now almost next to the office.

You get down and you have the distinct feeling that you can't really start the day without the fresh smell of a coffee. You head to the little close-by coffee shop that you have passed so many times, but have never entered. With an invigorated spirit you go inside. On the big board behind the counter there are just three types of coffee to go: small, medium and large. Which one will you choose?

Notice that you are not really familiar with the store and its products. Scientists say that the most popular size of coffee anywhere in the world is the medium size. And it doesn't matter how much coffee there is in that medium sized cup. "Small" is just not enough and "large" is simply too much.

To Think About
Based on this idea product assortments can be optimized to maximize profits. Increasing the number of options in an assortment can encourage demand for the middle choice.

Source: Soman, D. (2013). Course: "BE101x Behavioural Economics in Action". edX platform

Longevity in Roseto

It's not the lack of wealth that makes people unhappy, but the idea that they have less than others - a thought that conveys the feeling that they are insignificant.

An illustrative example is the town of Roseto, Pennsylvania, whose inhabitants were, in the '50s, immune to cardiovascular diseases, the leading cause of death in industrialized countries. Moreover, the death rate of men over 65 was two times smaller than in the rest of the United States.

After ruling out diet, genetics, and several other factors, Dr. Stewart Wolf came to the conclusion that the Rosetians' longevity was due to their sense of community. At the end of nineteenth century, the town was founded by Italian immigrants who knew each other. Unsurprisingly the town continued to grow as a close-knit community: people met in the evening for a walk or a game of cards and celebrated holidays together. The ostentatious display of wealth was looked awry on, as envy would have had divided the community. Therefore, although there were rich families in Roseto, it was impossible to recognize them by clothes, cars or houses. 

To Think About
A functional social structure may change the mental and physical condition of the people to such an extent that their health will benefit from this influence. People who have strong social connections live longer and better.

Source: Klein, S. (2008). "Formula fericirii. Minunatele descoperiri ale neuropsihologiei de azi". Bucharest: Humanitas

Services Seen as a Cake

Although people generally associate services in which there is a face-to-face human interaction with elements like "thank you", "please" or "yes, ma'am", actually there is much more to the process of performing a service.

Carl Sewell, the successor of one of the best rated car dealers in U.S., whose business has grown from $10 million in 1968 to nearly 1 billion today, states that if we would see the service system as a cake, courtesy, smiles and willingness to help would represent keeping the cake cool, while the systems that enable effective activities would be the cake itself.

For example, when a customer dines in a restaurant, waiters may smile until their jaws clench, may hold the chair to help him sit down and may change the napkins every time he leaves the table. Yet, if the customer doesn't like the food, the chances of returning are extremely low.

To Think About
Communication skills of front-line staff must be accompanied by systems that provide a high quality, efficient service, that meets and exceeds customer expectations. "Making the cake" entails creating
  • a system to do the job right the first time, so that customers are  delighted, 
  • a plan to quickly amend the processes when they do not work as they should.

Source: Sewell, C. & Brown, P.B. (2009). "Clienti pe viata. Cum sa transformi acel cumparator ocazional intr-un client pe viata". Bucharest: Publica

A Blind Man on a Bridge

On a bridge, in a beautiful spring morning, a blind man is begging. Next to him there is a card on which is written "Blind from birth". People pass him absentminded. A stranger stops, gets the card, turns it, writes something on it and then leaves without saying anything. Now every passerby turns his head and many of them drop a penny.

Those few words that were enough to change the attitude of people were: "It is spring and I can't see it."

To Think About
The words written by the stranger touched a profound motivation that most people have, namely compassion. Also, the act of giving money gained a positive meaning getting the people to think that they must alleviate the suffering of a poor blind man.

Source: Mucchielli, A. (2002). "Arta de a influenta. Analiza tehnicilor de manipulare". Bucharest: Polirom