What is this new buzz word Neuromarketing? What sort of marketing is it? This article explains why Neuromarketing is important, and why is the natural evolution of marketing. Neuromarketing is evolving as the new marketing.
Via Johnny E. Ramos Ch.
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On 23 July 2012, there was a similar coronal mass ejection (CME) released by the sun, only this time the CME narrowly missed Earth. Had the CME occurred just seven days earlier, it would have directly hit planet Earth. According the the US Geological Survey, such an event has a 6%–7% chance of happening in the next 10 years. NASA scientist Daniel Baker calculates that there is a 12% chance that the earth will encounter another Carrington Event within the next 10 years.
Networking is one of the most essential career management strategies, and it seems our readers agree, as proven by the popularity of networking content. In this recent Career Conversation with Seattle-based career coach Paula Fitzgerald Boos, we consider the topic further and discuss the real aim of networking — building relational equity.
am currently giving a set of lectures as part of a module "Behavioural Economic: Concepts and Theories" in Stirling. I am posting brief informal summaries of some of these lectures on the blog to generate discussion.
Today's lecture was on Rationality, Utility, Value and Decision-making. The lecture consisted of six sections (Fig. 1): (i) concepts of rationality; (ii) rational choice in conditions of certainty; (iii) rational choice in conditions in conditions of uncertainty; (iv) challenges to rational choice (v) loss aversion and the endowment effect; and (vi) implications of rationality assumptions and threats to their validity for policy.
(i) Concepts of rationalityThe main point of this lecture is to give a working definition of what we mean by rationality in Economics. This is a complex construct with many potential meanings across a wide range of literatures. In Economics we generally tend to mean that decision makers are consistent in their behaviour rather than to question their motivations. The basic microeconomic models of the consumer generally assume rational utility maximising behaviour.
The duration heuristic refers to the tendency to evaluate services based on their duration rather than on their content. We propose that consumers rely on the duration heuristic because it simplifies the evaluation process. In particular, the duration heuristic is most likely to be seen when the duration of the service experience is evaluable relative to other features and when duration is considered
in relation to price. Across four experiments and a field study, we (a) provide demonstrations of the duration heuristic, (b) illustrate the biases that result as a consequence of its use, and (c) identify conditions under which consumers are more likely to use the heuristic
Abstract: In an intensively discussed paper, Andreoni and Sprenger (2012) , henceforth A&S, present an experiment where subjects can allocate money between two different points of time under the condition of risk. A&S claim that their results refute discounted expected utility (DEU) as well as prospect theory and other models relying on probability weighting. In this note I will show that the theoretical analysis of A&S is inappropriate and, therefore, that their claims are not valid. It turns out that the experimental results of A&S are fully in line with DEU. The main problem of A&S ´s analysis is that is confounds income with consumption. There exist several other comments on A&S (Miao andZhong, 2012; Epper and Fehr-Duda, 2014 and Cheung, 2014) which discuss interesting aspects of the analysis of A&S but have not identified the theoretical implications of equalizing consumption and income
Alessandro Cerboni's insight:
The motivation for this multi-part series is solely my observation that much of the writing on complexity theory seems to have arbitrarily ignored the vast systems theory literature. I don’t know whether this omission is deliberate (i.e., motivated by the political need to differentiate and promote one set of topical boundaries from another; a situation unfortunately driven by a reductionist funding process) or simply the result of ignorance. Indeed, Phelan (1999) readily admits that he was “both surprised and embarrassed to find such an extensive body of literature [referring to systems theory] virtually unacknowledged in the complexity literature.” I am going to assume the best of the complexity community and suggest that the reason systems theory seems to have been forgotten is ignorance, and I hope this, and subsequent, articles will familiarize complexity thinkers with some aspects of systems theory; enough to demonstrate a legitimate need to pay more attention to this particular community and its associated body of literature. The upcoming 11th Annual ANZSYS Conference/Managing the Complex V Systems Thinking and Complexity Science: Insights for Action (a calling notice for which can be found in the “Event Notices” section of this issue) is a deliberate attempt to forge a more open and collaborative relationship between systems and complexity theorists
How Our Brains Are Wired to Resist Unfair Treatment
Humans are inherently social beings. We care not only about material and financial rewards, but also about social status, belonging, and respect. Research studies show that our brains automatically evaluate the fairness of how financial rewards are distributed. We seem to have a happiness response to fair treatment and a disgust or protest response to unfairness. Thisbrain wiring has implications for life happiness, relationship satisfaction, raising kids, and organizational leadership. This article will examine how we define fairness, how your brain processes experiences of fairness and unfairness, and how to cope with life’s unfair moments..
Enter the concept of effect size. Effect size gives one a way to think about how large an effect (e.g. a height difference) is, not just the probability of the data given the null hypothesis.
Social science research puts the p-value on a pedestal. The p value, or probability of the data given the null hypothesis is true, is seen as the gateway to publication, giving authors an incentive to “p hack“, or use various tricks to get p-values down below .05. And they do this despite the lord loving the .06 as much as the .05. We have cartooned on this before: One gripe with the p-value is that statistical significance is cheap. Most plausible hypotheses become statistically significant when the sample size is large enough. Among other things, statistical significance is a function of sample size. In the age of mTurk-scale data, attaining statistical significance is easier than ever. We have heard it said that that if you draw a line anywhere through the belly of the United States, you’ll find a significant different in height on opposite sides of the line because of the massive sample size. But it may be a puny difference.
Enter the concept of effect size. Effect size gives one a way to think about the magnitude of effects, not just the probability of the data given the null hypothesis (aka, the p-value). One popular measure of effect size, Cohen’s D, is discussed along with in the beautiful visualization pictured above. Learn more from the article It’s The Effect Size, Stupid, from which this post gets its name. And learn why you need lots of data to estimate effect sizesfrom our friends at Data Colada.
When I tell other students here that I plan to study behavioral economics, one of the first things they say to me is, "Have you heard of Malcolm Gladwell?" And usually I respond, "How could I not have heard of him?" He has entrenched himself as one of the most recognizable authors in recent memory. His popularity and perceived know-how have allowed him to command $45,000 in speaking fees per appearance, most notably at Bank of America (and if you were wondering how BOA has been doing recently...). He was also given an award by the American Sociological Association for his excellence in "disseminating sociological research," so academics have endorsed him as well.
Certainly, I have read many of his books at the recommendation of many peers. Just like they said, most of his work centers around topics in social psychology, a key component in many business and economic threads. I have found his books to be well written; mesmerizing at times, as he skillfully and effortlessly glides from topic to topic, story to story. His writing style is unique and captivating. Unfortunately, rather than nonfiction, professional, business-level books, I have found his writings to be full of simple stories that do nothing more than stir up a generalized interest and allow the author to engage in vague theorizing.
Abstract: We find evidence for the behavioral biases of anchoring and loss aversion. We find that anchoring is more important for items that are resold quickly, and we find that the effect of loss aversion increases with the time that a painting is held. The evidence in favor of anchoring and loss aversion with this large dataset validates previous results and adds to the empirical evidence a finding of increasing loss aversion with the length a painting is held. We do not find evidence that investors can take advantage of these behavioral biases.
Abstract: Due to the financial crisis, an increasing number of households face financial problems. This may lead to an increasing need for monitoring spending and budgets. We demonstrate that both cash and the debit card are perceived as helpful in this respect. We show that, on average, consumers responsible for the financial decision making within a household find the debit card more useful for monitoring their household finances than cash. Individuals differ in major respects, however. In particular, low earners and the liquidity-constrained prefer cash as a monitoring and budgeting tool. Finally, we present evidence that at an aggregated level, such preferences strongly affect consumer payment behaviour. We suggest that the substitution of cash by cards may slow down because of the financial crisis. Also, we show that cash still brings benefits that electronic alternatives have been unable to match. This suggests that inclusion of enhanced budgeting and monitoring features in electronic payment instruments may encourage consumers to use them more frequently.
How to sculpt an environment that optimizes creative flow and summons relevant knowledge from your long-term memory through the right retrieval cues.
Reflecting on the ritualization of creativity, Bukowski famously scoffed that “air and light and time and space have nothing to do with.”Samuel Johnson similarly contended that “a man may write at any time, if he will set himself doggedly to it.” And yet some of history’s most successful and prolific writers were women and men of religious daily routines and odd creative rituals. (Even Buk himself ended up sticking to a peculiar daily routine.)
Nudge: Improving Decisions about Health, Wealth, and Happiness is the title of a 2008 book written by Professors Richard Thaler and Cass Sunstein1. The book introduces the notion of choice architecture and draws on findings from behavioural economics.
Consider two cafeterias that want to help students consume less junk food. One cafeteria decides to attack the problem by placing a “tax” on junk foods or by banning the sale of junk foods altogether2. The other cafeteria decides to change their food display so that junk foods will less likely be cho-sen. Junk foods will be placed on higher, harder-to-reach shelves while healthy foods will be placed at eye level and within arm’s reach. Both cafeterias are trying to influence the behaviour but are using two entirely different methods. The first cafeteria is influencing behaviour by either financially in-centivizing students to choose healthier options or restricting their options and thus, their freedom of choice altogether3. The second cafeteria does neither but uses a nudging strategy:
“A nudge is any aspect of the choice architecture that alters people’s behaviour in a predictable way without forbidding any options or significantly changing their eco-nomic consequences. To count as a mere nudge, the intervention must be easy and cheap to avoid. Nudges are not mandates. Putting fruit at eye level [to attract atten-tion and hence increase likelihood of getting chosen] counts as a nudge. Banning junk food does not.”
Below is cross-posted from Irisheconomy.ie and is my attempt to summarise behavioural science and public policy for Irish policymakers (but clearly similar issues in other countries):
Abstract: Despite literature has widely investigated the logics of ideation, at early stages of innovation and product development processes (Bjork and Magnusson, 2009; Boeddrich, 2004; Girotra et al., 2010), very few contributions deal with the very starting point of the ideation process, i.e. the initial theme given to workshops participants. Nevertheless, scholars' works on the nature of stimuli and examples (Smith et al.,1993; Ward et al., 2004) underlined they could generate heterogeneous effects on the efficiency of the ideation stage. Moreover, whereas efficiency criteria for creativity sessions are well known (fluency, flexibility, originality, elaboration), creativity techniques focus on the improvement and monitoring of ideation management: the problem of designing the initial theme is seldom included in the design parameters of creativity sessions, as if it was not considered as an issue in research on creativity management. Yet, one consequence of the above mentioned literature results is that it should be a key efficiency factor: the formulation could play a key role in conditioning cognitive involvement of individuals and managerial goals achievement. This paper focuses on this specific problem of formulating an efficient theme for a creativity session and its implications on cognitive involvement of facilitators and participants, and the achievement of managerial goals of the session. Based on a single case study led through collaborative action research with the French postal service operator, our research analyses the impacts of the formulation in three innovative-oriented creativity workshops the authors have organized and steered from May to October 2013. The three workshops themes were built to experiment the impact of the theme formulation on: 1/ creativity techniques efficiency according traditional criteria and facilitators' cognitive involvement; and 2/ participants' satisfaction assessed through their ability to link the theme, thus the generated ideas, to the company's innovation strategy. The exploratory study confirms that the formulation of the theme has important consequences, both cognitive and managerial. A first set of results suggests two main dimensions to describe the nature and structure of a theme naming: the accuracy level of the formulation and the degree of conceptual tension. A second set of results is about concrete reasoning when designing the theme and implementing in the formulation links to the firm's strategy. A third set of results is about consequences of theme formulation on the way the creativity session is designed and steered. Key dimensions include: 1/ The degree of cognitive implication of facilitators; 2/ The nature of stimuli and idea generation techniques used during the session (generic versus custom-made); 3/ The degree of commitment of the actors (designers of the theme, facilitators and participants) to the organization's strategy, i.e. to what gives value to the output of the creativity session.
Terra is a super customizable framework for creating and analyzing biological simulations. It's open-source and licenced under MIT.
Some models of dynamic simulation to agents that explain many social phenomena and behavior of the masses, interesting from start to better understand the world around us and many cognitive biases with respect to behaviors that we consider correct but that the evidence shows are an intellectual illusion.
According to researchers at the University of Montreal, the regions of the brain below the cortex play an important role as we train our bodies' movements and, critically, they interact more effectively after a night of sleep. While researchers knew that sleep helped us the learn sequences of movements (motor learning), it was not known why. "The subcortical regions are important in information consolidation, especially information linked to a motor memory trace. When consolidation level is measured after a period of sleep, the brain network of these areas functions with greater synchrony, that is, we observe that communication between the various regions of this network is better optimized. The opposite is true when there has been no period of sleep," said Karen Debas, neuropsychologist at the University of Montreal and leader author of the study. A network refers to multiple brain areas that are activated simultaneously. To achieve these results, the researchers, led by Dr. Julien Doyon, Scientific Director of the Functional Neuroimaging Unit of the Institut universitaire de gériatrie de Montréal Research Centre, taught a group of subjects a new sequence of piano-type finger movements on a box. The brains of the subjects were observed using functional magnetic resonance imaging during their performance of the task before and after a period of sleep. Meanwhile, the same test was performed by a control group at the beginning and end of the day, without a period of sleep. - See more at: http://www.neuroscientistnews.com/research-news/learning-play-piano-sleep-it#sthash.GPViQAZq.dpuf
Effect size is a simple way of quantifying the difference between two groups that has many advantages over the use of tests of statistical significance alone. Effect size emphasises the size of the difference rather than confounding this with sample size. However, primary reports rarely mention effect sizes and few textbooks, research methods courses or computer packages address the concept. This paper provides an explication of what an effect size is, how it is calculated and how it can be interpreted. The relationship between effect size and statistical significance is discussed and the use of confidence intervals for the latter outlined. Some advantages and dangers of using effect sizes in meta-analysis are discussed and other problems with the use of effect sizes are raised. A number of alternative measures of effect size are described. Finally, advice on the use of effect sizes is summarised.
Simon’s bounded rationality (BR), the first scientific research
program (as opposed to a purely philosophical one) to seriously
take the cognitive limitations of decision makers into
account, has often been conflated with his more restricted
concept of satisficing—choosing an alternative that meets or
exceeds specified criteria, but that is not guaranteed to be
unique or in any sense “the best.” Proponents of optimization
often dismiss bounded rationality out of hand with the following
“hallway syllogism” (as formulated by Bendor 2003:
435, who disagrees with it): bounded rationality “boils down
to” satisficing; satisficing is “simply” a theory of search for
alternatives that takes into account the costs of computation.
Hence, bounded rationality is “just a minor tweak” on optimal
This article complements a psychologist’s plea for “striking
a blow for sanity” in theories of rationality (Gigerenzer
2004). I amplify his argument that bounded rationality is not
optimization under constraints from a more biological perspective.
In order to do so, I first call attention to Simon’s
evolutionary understanding of the nature of bounded rationality
as grounded in the interactions between organisms and their
environments, which has implications for niche construction
and evolutionary theory generally. I then discuss the debate
between “optimizers” and “satisficers” with particular attention
tomodeling in biology. I round off by briefly assessing the
relevance of a ramification of bounded rationality, the neardecomposability
of hierarchical systems, for modular theory,
which predicts that hierarchical developmental processes generate
hierarchical phenotypic units that can change independently.
Interspersed are some remarks on Simon’s philosophical