Behavioural Science (or Behavioural Economics) has developed to explain differences between observed and predicted behaviour. It is not a single unified theory but a set of in excess of 200 behavioural effects (sometimes called cognitive biases) which describe how people process information and behave in response.
It draws from a range of disciplines including experimental economics, psychology, sociology, anthropology and neuroscience. It is important because applying the lessons from Behavioural Science can increase the effectiveness and value for money of behaviour change interventions, improve the reliability of forecasts, and enhance the value of market research. |
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Predictably Human
Behavioural Science tells us that people do not behave as "econs" making rational, utility maximising choices, but as humans with all their emotions and complex lives. To illustrate some of the ways in which people do not behave as is often expected (and generally assumed by planners, modellers, forecasters and even some marketers) the Predictably Human questionnaire has been developed, an extract of which is available opposite for you to participate in. To see the results of previous surveys, look in the Library (results are updated regularly) |
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Behavioural Effect |
Short description |
Action bias |
In some circumstances it's important to be seen to be doing something rather than simply sitting back and letting things happen, even if inaction is actually the best approach. |
Ambiguity aversion |
People don't like ambiguity and seek clarity and simplicity. |
Availability heuristic (All You See Is All There Is) |
Things that are more readily available have a greater impact than those which are more remote. |
Being seen to be good |
People like to be seen to do the right thing for society. |
Belonging |
Belonging - the desire to belong engendered through common goals. |
Blame avoidance |
Where the imperative is to avoid blame. |
Commitment |
People like to be internally consistent, and this concept is sometimes utilised in behaviour change programmes by encouraging participants to make a commitment which they then feel compelled to be consistent with. |
Confirmation bias |
People tend to seek out or evaluate information in a way that fits with their existing thinking and preconceptions. |
Conflict avoidance |
Most people avoid conflict and seek to collaborate with others. |
Default |
People will tend to choose the default option in order to make their lives less complicated, even if this is not the best option. |
Draw of free (or zero-price effect) |
Free goods have extra pulling power, as a reduction in price from £1 to zero is more powerful than a reduction from £2 to £1. |
Easy |
People are generally looking to make their lives easier and reduce the hassle factor. Simplicity and convenience are therefore key, and to facilitate a behaviour any friction should be reduced. |
Ego |
We act in ways that make us feel better about ourselves. |
Empowerment |
People need to feel they can make a difference in order to be motivated to try. |
Endowment effect |
When we own something we put greater value on it and don’t like to give it up. |
Fairness (or inequity aversion) |
People don't like inequity and unfairness. |
Framing (also Anchoring, Choice Architecture) |
Choices are heavily influenced by the way they are presented and, for example, which (and how many) options are shown. |
Habit |
Most behaviour is habitual with minimal conscious thought. This creates inertia and puts a brake on change. It means that it is easier to change behaviour at a point when habits are interrupted. |
Herd behaviour |
The tendency for people to unconsciously follow what others are doing rather than act independently. |
Heuristic |
Most choices are made unconsciously using simplified rules of thumb, or ‘heuristics’. This can be as simple as “I’ll do what I did last time in this situation” or "I'll do what my friends are doing". |
Honesty |
People like to be seen to be honest, although in practice most people are mildly dishonest. |
Incentives |
An incentive is something that motivates an individual to perform an action by making it more attractive. Monetry incentives can backfire by reducing the benefit of prosocial behaviours. |
Information asymmetry |
Where one party has more information than another it can lead to a lack of trust. |
Labour illusion |
Things are perceived as more valuable if they think a lot of effort has been put in to create it. This includes taking a longer time to produce something. |
Licensing effect |
The licensing effect is evident when people allow themselves to do something bad after doing something good. |
Loss aversion |
People are more affected by losses than gains. |
Messenger |
The impact of a message can be as much about the messenger as the message itself. |
Myopic procrastination |
The tendency for people to put off making a decision. |
Need for recognition |
People need to have external recognition and because of this reputational incentives can be more powerful than financial ones. |
Need for self esteem |
People need to have self-belief and a positive self-image, with one of the consequences of this being a need to be consistent. It means there is an incentive for conspicuous consumption. |
Peak end rule |
Memories of past events predominantly reflect the most extreme event and the end point. |
Power of context |
Our decisions are heavily influenced by the external environment, even though we are often unaware of it and prefer to believe we are in control. |
Present bias (also hyperbolic discounting or short termism) |
Things occurring imminently are given far more importance than those occurring in the future. |
Primacy of emotion |
Brain scanning has shown that our emotions are triggered in advance of rational thought and there is good evidence that emotions drive decision-making. As David Ogilvy put it: "Customers need a rational excuse to justify their emotional decisions. So always include one". |
Priming |
Priming refers to a sub-conscious process whereby an association is triggered and then goes on to influence behaviour. |
Reactance |
Priming refers to a sub-conscious process whereby an association is triggered and then goes on to influence behaviour. |
Rebound effect |
The rebound effect occurs when a mitigating action is undertaken but the gains it creates are offset or even reversed by subsequent actions. For example, someone who buy a fuel-efficient vehicle may then drive further than when they owned a less-efficient vehicle. |
Recipriocity |
Reciprocity is a social norm that involves in-kind exchanges between people—responding to another’s action with another equivalent action. |
Regret avoidance |
Most people fear making the wrong choice and will do what they can to avoid doing so. |
Relativity |
People think in relative rather than absolute terms. |
Salience |
We are drawn to what is novel and seems relevant to us. |
Satisficing |
People tend to make decisions by satisficing (a combination of sufficing and satisfying) rather than optimising. |
Scarcity heuristic |
When something is less readily available it tends to perceived as more valuable. |
Simplification |
Since people are often overloaded with information and demands on their mental resources, they have an innate desire to simplify things. This can lead to a variety of biases, and is reflected in the use of heuristics. It is one reason why simple messages work best - if a message is complex it's hard to know exactly how the reader is going to simplify it. |
Simulation heuristics |
Where someone has a narrow miss, they can more easily imagine an alternative where they succeed. |
Social norm |
Unwritten societal (or group) rules which influence an individual’s behaviour. |
Status Quo bias |
People generally prefer things to stay the same, or simply find this the easiest option. This often leads to habitual behaviour and sticking with the default option. |
Sunk cost fallacy |
When an action is continued on the basis of obtaining value from previously invested resources in order to "get your money’s worth" . |