All posts by Jaewoo Joo

Jaewoo teaches and writes about design thinking, behavioral economics, and field experiment for customer experience. He is professor of marketing and participating professor of experience design at Kookmin University. Jaewoo has been Visiting Scholar at Stanford University since September 2024.
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Design Thinking vs. Behavioral Economics

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Crate and Barrel sells various cookware. Most products in this store are grouped into product categories. However, some are grouped into why we need them. The two “ad hoc categories” are [7 Essentials for Every Kitchen] and [Everything You Never Knew You Needed].

 

 

Ad hoc categories, coined by Barsalou, motivate impulse buying. I bought some tools I did not plan ahead and saw some customers standing in front of the two sections for a while.

Barsalou, Lawrence W. (1983), “Ad hoc categories,” Memory & Cognition, 11 (3), 211-227.

People construct ad hoc categories to achieve goals. For example, constructing the category of “things to sell at a garage sale” can be instrumental to achieving the goal of selling unwanted possessions. These categories differ from common categories (e.g., “fruit,” “furniture”) in that ad hoc categories violate the correlational structure of the environment and are not well established in memory. Regarding the latter property, the category concepts, concept-to-instance associations, and instance-to-concept associations structuring ad hoc categories are shown to be much less established in memory than those of common categories. Regardless of these differences, however, ad hoc categories possess graded structures (i.e., typicality gradients) as salient as those structuring common categories. This appears to be the result of a similarity comparison process that imposes graded structure on any category regardless of type.

Interestingly, the two ad hoc categories in the Crate and Barrel tap into different psychological processes. [7 Essentials for Every Kitchen] are the products used by others. They nudge you to follow others, which is often recommended by behavioral economists. In contrast, [Everything You Never Knew You Needed] are the products useful for you. They help you discover your own unmet needs, which is always suggested by design thinkers.

Then, which framing is more effective between “competing against others” and “following your heart”?

 

 

We can answer this question by comparing the sales numbers between spatula and dual citrus squeezer. The two products belonged to the [Everything You Never Knew You Needed] four years ago. Now, only spatula belongs to the [7 Essentials for Every Kitchen]. If spatula sales have increased and squeezer sales did not, behavioral economics beats design thinking. In contrast, if spatula sales dropped and squeezer sales did not, design thinking beats behavioral economics.

 

 

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Artwork at ICN airport

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Something colorful was hung some distance below the ceiling at the Incheon international airport (ICN). At first it looks like a bunch of tiny colorful balloons. However, each one has different shapes and even move up and down.

 

 

The name of this interesting artwork is “Hello.”

 

This work uses Hangeul, a major cultural heritage of Korea, as a model to raise international awareness on the scientific excellence and creative design of the Korean language. The content, delivered by an object comprised of 1,000 Korean consonants and vowels, introduces the diverse travel cultures of countries around the world. With 1,000 Korean consonants and vowels as LED units, this artwork achieves three-dimensional forms and movements by connecting a motor and microcontroller unit to each consonant and vowels to control height and LED color. -By Kang HeeRa

 

 

 

 

 

Cases

Do we enjoy brunch more if we combine foods to create it?

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In cafes in Copenhagen, Denmark, customers are often asked to create their own meals by combining foods. I succeeded in this creative task in one cafe but did not in the other. Two cafes have slightly different menus.

I enjoyed the meal in the Mad & Kaffes (Food & Coffee). Foods were divided into six categories on the menu (green, dairy, bakery, meat and fish, and treat). I decided how many categories to go (3, 5, or 7) and then selected one food in each category.

I did not enjoy the meal in the Moller Kaffe and Kokken (Moller Coffee and Kitchen). Although individual foods were excellent, they were listed under one category. I could not figure out which foods to choose.

Since I knew little about Danish cuisine, categories relieved my burden and helped me create a meal. A similar logic was discovered ten years ago by marketing researchers who showed why kids need to follow instructions to assemble Lego bricks. To reach a creative outcome, we may need decision supporters such as categories, instructions, or even constraints.

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Reference

Dahl, D. W., & Moreau, C. P. (2007). Thinking Inside the Box: Why Consumers Enjoy Constrained Creative Experiences. Journal of Marketing Research, 44(3), 357–369.

From cooking kits to home improvement shows, consumers are increasingly seeking out products that are designed to help them be creative. In this research, the authors examine why consumers participate in creative activities and under what conditions these experiences are the most enjoyable. A qualitative study explores the diverse motivations for undertaking creative tasks and identifies the role of constraints in such endeavors. Then, the authors conduct two experimental studies to understand the importance of constraints (e.g., instructional guidance, target outcomes) in facilitating a balance between perceived competence and autonomy for consumers involved in a creative task. When consumers engage in creative activities with a sense of both autonomy and competence, they enjoy the experience more. The authors discuss implications for managers and provide opportunities for further research.

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Why do people exit the bus at the front door?

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At Quora, someone asked “Why do people exit the bus at the front door even when it’s not crowded?” It received seven answers.  

 

  1. Habit. If a bus has two doors it is actually more efficient for passengers to exit by the back door as any new passengers enter through the front door. However, most people use the front door when exiting out of habit, sometimes even walking the full length of the bus to do so.
  2. I do it for two reasons. First: I do it because I may be transferring to another bus. And believe me, getting out the back door vs. the front can make the difference between making your next bus and missing it. It happens sometimes, and i never know which time it will be. Second: I do it so I can thank the driver personally. They have a tough job. Lots of people abuse them. I like to treat them well.
  3. Because it is safer. Using a back door bears the risk that the bus driver won’t see you and could slam the door on you or depart while you are in mid-air. It has happened to me on more than one occasion.
  4. I do so mostly out of habit but also so that I can thank the driver. These women and men sometimes cop abuse that is quite unwarranted in my view. They deserve the same courtesy as everyone else and for getting me to my destination safely and comfortably. 
  5. Maybe they were closer to the front than rear. Maybe they did not feel like walking to the rear. Maybe they were unsure if the rear is crowded. Maybe they were absent-minded and accidentally took the front. Maybe they figured it doesn’t matter. There could be many ‘maybes’, all with their own reasons, only way to be sure is to ask.
  6. Handicapped people find it easier to use the front. The driver can pull closer to the curb and “kneel” the bus to make it easier for cane-users. Wheelchair-users need the ramp in the front of the bus.
  7. If they are sitting right at the front of the bus it is the closest door. It is normal to just exit at the closest door.

 

All the answers were based on the assumption that people should enter the bus at the front door. I used to have the same thought before I went to Prague and Nagasaki where the front door of the bus was designed differently.  

 

 

At these two cities, passengers get off the bus at the front door. In other words, at Prague and Nagasaki, people exit the bus at the front door not because of habit or convenience but because they are educated and trained. Something that was taken for granted to me was not to them.

 

 

 

 

Cases

A choice architecture to reuse hotel towels

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Banff Aspen Lodge has an interesting environmental incentive program. If guests stay two or more nights and prefer no housekeeping service in this hotel, it offers a choice of options for the guest’s consideration:

  • Option 1: The hotel will make a donation of $4 on behalf of guests to the Banff Community Foundation, which supports environmental initiatives in their community. To select this option, guests insert the Green Card into the entry door lock.
  • Option 2: Enjoy one complimentary beverage at the Whitebark Cafe, which is located in the lobby. To select this option, guests insert the Yellow Card into the entry door lock. A complimentary beverage coupon is delivered to the guest’s room. 

I suspect someone carefully designed a choice architecture with a psychological intervention to nudge guests to choose “No” housekeeping service. This program will be effective because…  

  1. Three options are provided (housekeeping vs. environmental 1 vs. environmental 2). It differs from the choice architecture commonly observed in the behavioral economics in which two competing options are provided. Having three options may relieve the guests’ burden, which decreases their intentions to defer choices.  
  2. Only two environmental options are highlighted. As guests read and think about “how” to protect environment, the chance they select one of the two environmental options may increase.
  3. Two environmental options reflect the two motivations why people should behave environmentally friendly; helping others (charitable giving) and helping themselves (economic incentive). 
  4. Finally, when guests select one environmental option, they do not speak or write down but simply insert a card into their own entry door lock. This simple behavior has no peer pressure. 

This environmental incentive program might be more effective than making a commitment at check-in, a scientifically proven intervention in the prior marketing paper. 

Baca-Motes, K., Brown, A., Gneezy, A., Keenan, E. A., & Nelson, L. D. (2012). Commitment and Behavior Change: Evidence from the Field. Journal of Consumer Research, 39(5), 1070–1084.

Influencing behavior change is an ongoing challenge in psychology, economics, and consumer behavior research. Building on previous work on commitment, self-signaling, and the principle of consistency, a large, intensive field experiment (N = 2,416) examined the effect of hotel guests’ commitment to practice environmentally friendly behavior during their stay. Notably, commitment was symbolic—guests were unaware of the experiment and of the fact that their behavior would be monitored, which allowed them to exist in anonymity and behave as they wish. When guests made a brief but specific commitment at check-in, and received a lapel pin to symbolize their commitment, they were over 25% more likely to hang at least one towel for reuse, and this increased the total number of towels hung by over 40%. This research highlights how a small, carefully planned intervention can have a significant impact on behavior. Theoretical and practical implications for motivating desired behavior are discussed.

Cases

Positioning map helps consumers make decisions

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Fairmont Chateau Lake Louise is a hotel in Alberta, Canada. Surrounded by mountain peaks and an emerald lake in the Banff National Park, this hotel has a pub for the outdoor enthusiasts coming from all over the world. At the pub, the menu was carefully designed for foreigners by mapping local drinks in two dimensions: how bitter (vs. sweet) and mild (vs. full flavor) beers are and how sweet (vs. sour) and mild (strong) cocktails.

Visual mapping of existing products in two dimensions has been widely used among marketers who either modify existing products or introduce new products. Marketers rely on, so called, positioning map or perceptual map because map illustrates the customer perception of a company’s products and brands relative to their competition.

However, as the menu suggests, positioning map could benefit customers as well when provided with unfamiliar products. As persona helps designers communicate with users, map could help novice customers make informed decisions. In other words, positioning map aids consumers’ understanding of their own preferences, like consumption vocabulary.

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Reference

West, P. M., Brown, C. L., & Hoch, S. J. (1996). Consumption Vocabulary and Preference Formation. Journal of Consumer Research, 23(2), 120–135.

Consumers’ understanding of their own preferences can be aided by a “consumption vocabulary”-a taxonomy or framework that facilitates identifying the relation between a product’s features and one’s evaluation of the product. In the absence of such a vocabulary, consumers’ understanding of their own preferences will require more extensive experience and may never fully develop. The effect of such a vocabulary is tested in two experiments in which subjects provided with a vocabulary (1) exhibit better-defined and more consistent preferences than control subjects, (2) show improved cue discovery, and (3) show learning (i.e., increases in consistency over time). All results hold regardless of the functional form of the model used to assess subjects’ preference formation.

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A surprising ride at Legoland

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Lighthouse is a ride in Legoland Billund, Denmark. It looks like a small-sized drop tower exclusively designed for kids or even toddlers. I expected young riders would experience free-fall initially, followed by modest deceleration.

Surprisingly, it is not a drop tower. Instead, riders need to pull the rope until they hit the top. Legoland website explains it.

Children gain insight into themselves when they hoist themselves up by their own strength to the LEGO® Lighthouse Keeper and the spectacular view of Pirate Land and Pirate Island. Climbing down again is also fun – and a little challenging.

Many European riders actually enjoyed this labor intensive, manual ride. It is a stack contrast with electronically powered, automatic drop towers in Korea. Their difference seems to be in line with the different train ticket system between UK and Korea. Europeans seem to embrace and enjoy manual labor, whereas Asians tend to avoid it.

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Reference

Kruger, J., Wirtz, D., Van Boven, L., & Altermatt, T. W. (2004). The effort heuristic. Journal of Experimental Social Psychology, 40(1), 91–98.

The research presented here suggests that effort is used as a heuristic for quality. Participants rating a poem (Experiment 1), a painting (Experiment 2), or a suit of armor (Experiment 3) provided higher ratings of quality, value, and liking for the work the more time and effort they thought it took to produce. Experiment 3 showed that the use of the effort heuristic, as with all heuristics, is moderated by ambiguity: Participants were more influenced by effort when the quality of the object being evaluated was difficult to ascertain. Discussion centers on the implications of the effort heuristic for everyday judgment and decision-making.

“On arrival to the lab, participants were told that the experiment concerned the way in which people evaluate of poetry. Participants read ‘‘Order’’ by Van Walleghen (1966)… Participants randomly assigned to the low-effort condition were told that Van Walleghen spent 4 h on the poem, whereas participants in the high-effort condition were told that the poet spent 18 h.” (pg. 93)

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Language barrier makes virtual reality more real

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At Prague, Czech Republic, visitors experienced riding a new tram called T3 Coupe in virtual reality.

The T3 tram is an iconic component of the Prague city scape. In collaboration with Anna Marešová designers, the Prague Public Transit Co. has created a new pleasure tram concept based on the tradition of the Tatra T3 tram, putting this legendary vehicle in an entirely new context while respecting its authentic looks. By opening the rear of the tram and combining original elements with modern technologies, the project has given rise to an old-timer that demonstrates how even public transit can deliver real luxury. Because the tram has only one set of doors, it’s been dubbed the T3 Coupé. This special tram preserves the romance of the 1960s and is a tribute to the designer of the original Tatra T3 tram – František Kardaus (1908–1986). The new T3 Coupé tram hits the streets in autumn 2018.

 

 

They sit on the chairs, wore Samsung Gear VR headset, and watched a 360 degree video as passengers. A driver and other passengers appeared in the video.

 

 

Before having enjoyed the virtual tram, I asked a lady about what is T3 Coupe, where to sit, and how to start the device. Interestingly, this human interaction made my non-real experience more real. It was ironic that I was more immersed into the virtual world because of my experiencing language barrier; she could not explain to me about T3 Coupe in English and I could not understand any Czech written on the ticket.

 

 

Peak end rule is probably one of the most well established psychological heuristic. Kahneman and his colleagues (1993) found that people tend to judge an experience based on how they felt at its peak and at its end. However, people might consider its beginning as well when the experience is virtual. Virtual experience might need to be carefully wrapped up by its beginning, its peak, and its end.

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.

Subjects were exposed to two aversive experiences: in the short trial, they immersed one hand in water at 14 °C for 60 s; in the long trial, they immersed the other hand at 14 °C for 60 s, then kept the hand in the water 30 s longer as the temperature of the water was gradually raised to 15 °C, still painful but distinctly less so for most subjects. Subjects were later given a choice of which trial to repeat. A significant majority chose to repeat the long trial, apparently preferring more pain over less. The results add to other evidence suggesting that duration plays a small role in retrospective evaluations of aversive experiences; such evaluations are often dominated by the discomfort at the worst and at the final moments of episodes.

 

 

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How does Taipei MRT differ from Copenhagen metro?

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Taipei Metro covers more stations than Copenhagen Metro. It covers 117 stations (vs. 22 stations). Like other Asian trains, it has seats designated for the people who are in need. A poster in the train asks us to “stand up for someone in need” in a gentle and polite way, that is, “也許他/她有需要，只是你看不到 (maybe she/he has the need, you just can’t see it).”

 

 

In contrast, Copenhagen trains have fewer folding seats (for bicycles and strollers) and have no seat for those who are in need. Interestingly, I have seen many seats are available because only few travelers sit down rather temporarily. Why do and how could many Danes stand up whereas many Taiwanese sit down in their trains?