Cafe Strada has long been a beloved spot among UC Berkeley students. Its prime location inside the campus, cozy patio, and inviting workspaces make it the perfect place for studying alone or meeting friends.
But for me, Cafe Strada is more than just a popular café. It is a personal place tied to one of the most memorable periods of my life. In 1999, as an exchange student living at the International House, I often stopped by Cafe Strada in the morning. A five-minute walk there was a comforting ritual in a new environment.
When I revisited 25 years (!) later, I was amazed that nothing had changed. The International House and Cafe Strada remained just as I remembered it. While everything around me in Korea seems to change, its steady presence in US felt like a journey back in time.
Then, I ended up buying more baked goods and coffee than I needed at the cafe, but it didn’t matter. Psychologists describe this as nostalgic consumption, where nostalgic memory weakens our desire to make or save money. For me, Cafe Strada is more than just a cafe—it is where memory transforms money into something meaningless.
Nostalgia has a strong presence in the marketing of goods and services. The current research asked whether its effectiveness is driven by its weakening of the desire for money. Six experiments demonstrated that feeling nostalgic decreased people’s desire for money. Using multiple operationalizations of desire for money, nostalgia (vs. neutral) condition participants were willing to pay more for products (experiment 1), parted with more money but not more time (experiment 2), valued money less (experiments 3 and 4), were willing to put less effort into obtaining money (experiment 5), and drew smaller coins (experiment 6). Process evidence indicated that nostalgia’s weakening of the desire for money was due to its capacity to foster social connectedness (experiments 5 and 6). Implications for price sensitivity, willingness to pay, consumer spending, and donation behavior are discussed. Nostalgia may be so commonly used in marketing because it encourages consumers to part with their money.
I realized that California is not as bike-friendly as I had hoped, so I decided to look for a used car. A few weeks ago, I found a car I liked on CarGurus.com and scheduled a test drive it. But just a day before my visit, I received a text saying the car had already been sold. It was frustrating.
Therefore, I decided to visit CarMax in Fremont, the used car dealership many people recommend. I was not expecting much, but to my surprise, the experience turned out to be refreshing.
The first thing I noticed when I walked into the place was clean, bright, and organized it looked. It felt more like an IKEA store. In particular, the lighting gave the whole place a welcoming vibe. It made me feel freshly excited, which is not something I could associate with used car shopping.
What stood out next was how the salesperson worked with me. Unlike my experience at Bank of America, where the teller kept the screen to themselves while I sat behind it, here the salesperson shared his screen with me. We went through the car’s history, the price breakdown, and all the details together. It felt like we were on the same team, not just buyer and seller. Interestingly, he was not knowledgeable about cars, but that helped me feel less intimidating and more relaxed. Sharing the screen was a simple gesture, but it made all the difference.
Finally, the cars and the prices were the same as advertised. When I arrived at the parking lot, the cars I came to test drive were there, just as promised, with no need for negotiation—like a clear price tag. It reminded me of WYSIWYG—what you see is what you get.
CarMax might be slightly pricier than other dealerships, but I am willing to pay a premium for the peace of mind it brings. The bright store design, transparent sales process, and WYSIWYG-style inventory transformed a frustrating car-buying experience into something positive.
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Reference (bright store design for visitor experience)
Store atmospherics affect consumer behavior. This message has created a revolution in sensory marketing techniques, such that across virtually every product category, retailers and manufacturers seek to influence the consumer’s “sensory experience.” The key question is how should a company design its multisensory atmospherics in store to ensure that the return on its investment is worthwhile? This paper reviews the scientific evidence related to visual, auditory, tactile, olfactory, and gustatory aspects of the store environment and their influence on the consumer’s shopping behavior. The findings emphasize the need for further research to address how the multisensory retail environment shapes customer experience and shopping behavior.
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Reference (transparent sales process for user experience)
Purpose: Even as retailers add digital features to their physical stores and equip their service teams with digital devices, no research has addressed the implications of frontline employees (FLEs) sharing a screen side-by-side with customers as a contemporary service practice. This paper aims to identify the potential customer benefits of this service practice.
Design/methodology/approach: Noting the lack of theoretical considerations of screen-sharing in marketing, this paper adopts an interdisciplinary approach and combines learning theories with computer-supported collaborative learning topics to explore how screen-sharing service practices can lead to benefits or drawbacks.
Findings: The findings specify three main domains of perceived benefits and drawbacks (instrumental, social link, individual control) associated with using a screen-sharing service. These three dimensions in turn are associated with perceptions of accepted or unaccepted expertise status and relative competence.
Research limitations/implications: The interdisciplinary perspective applied to a complex new service interaction pattern produces a comprehensive framework that can be applied by services marketing literature.
Practical implications: This paper details tactics for developing appropriate training programmes for FLEs and sales teams. In omnichannel service environments, identifying and leveraging the key perceived benefits of screen-sharing can establish enviable competitive advantages for service teams.
Originality/value: By integrating findings of a qualitative research study with knowledge stemming from education sciences, this paper identifies some novel service postures (e.g. teacher, peer, facilitator) that can help maximise customer benefits.
Roten, Y. S., & Vanheems, R. (2024). The dimensions of phygital autonomy: losing some, gaining some. Journal of Marketing Management, 40(11-12), 996-1029.
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Reference – (WYSIWYG-style inventory for customer experience)
This article examines 40 years of research conducted in the area of Out-of-Stocks (OOS). Two research streams originating from the Progressive Grocer (1968) study are reviewed. The first stream dealt with demand side issues and analysed consumer responses to OOS. The other dealt with supply side issues and analysed the extent and root causes of OOS situations as well as how to improve OOS. Four paradoxes are derived from the review and are discussed: 1) OOS rates largely seem to fall into an average level at about 7 to 8% despite 40 years of research; 2) only sparse attempts have been made to integrate the two research streams; 3) there is an emphasis on minimizing OOS rather than relying on basic trade-offs as addressed by Economic-Order-Quantity theory to optimize OOS levels; and 4) despite clear evidence of the store as the major contributor to OOS situations, the store has largely remained a ‘black-box’ in OOS research. Finally, the study suggests that OOS research can integrate the notions of the two streams by showing how the conditions for consumer responses can be translated into different degrees for costs of understocking taken from Economic-Order-Quantity theory. This will have important implications for the management of OOS.
During a visit to a CVS store in Redwood City, California, I encountered an unexpected barrier to purchasing something as simple as lint rollers. These inexpensive items were locked behind a glass cabinet, requiring me to press a button to unlock it.
The inconvenience of this process immediately raised questions about the rationale behind such measures. Why would store managers restrict access to low-value products, slowing down the shopping experience? This practice seems counterintuitive in a retail environment where seamless customer interaction leads to higher sales.
“We have people that, in broad daylight, will walk right in with backpacks and take everything off a shelf and shove it into their bag and leave. They don’t care if you see them, and they don’t care if they are on camera. CVS would literally not be in business anymore if we didn’t lock things up.”
However, locking up inexpensive items can do more harm than good—it frustrates shoppers and may result in lost sales, as potential buyers could abandon their purchases entirely. This calls for store management to reconsider its approach. After all, a hassle-free shopping experience remains a crucial factor in retail success.
In my talk, I shared insights from my project experience with Korean designers, where we explored how companies can use psychology to improve product design and boost sales. One project I discussed involved creating product bundles. I explained how even small changes can have a big impact on whether people decide to buy.
The students were curious and engaged, asking thoughtful questions. One asked, “What’s the difference between Samsung and Apple?” Others questioned about which marketing tools these companies uses now. We even touched on how Google Nest might face similar questions when trying to bundle products effectively.
Overall, it was inspiring to see the students’ enthusiasm. Many left with new ideas on how to think about consumers in their own projects. I am excited to see where these future entrepreneurs take these insights.
A recent drive on an express lane showed tolls as high as $9 to Broadway and $10 to I-380, depending on real-time conditions. What makes this interesting is that the price for using the same road is not predetermined; it is decided on the spot.
Dynamic toll pricing may adjust based on traffic volume, creating an anchor for drivers to evaluate the value of the express lane. If traffic is heavy, the higher toll can feel worth it when compared to the frustration of sitting in congestion. This shifting price serves as a real-time incentive or deterrent, depending on how drivers value their time at that moment.
Mental accounting, the tendency to categorize resources such as money and time, is a key principle at work. The price is not just about the toll but about the potential loss of time stuck in traffic. For many, the higher toll feels like a small price to pay to avoid the larger loss of wasted time, especially during busy hours.
Dynamic pricing taps into our varying perceptions of time. During a stressful commute, paying $10 to save several minutes is more appealing than when traffic is light. The system uses behavioral cues to nudge drivers into seeing the express lane as a valuable, time-saving option.
In essence, dynamic toll pricing leverages human psychology to adjust behavior in real time, making the express lane more than just a road—it is a reflection of what happens when we convert time into money.
The sunk-cost effect, an irrational attention to non-recoverable past costs while making current decisions, has been documented widely in the domain of monetary costs. In this paper, I study the effect of past time investments on current decisions. In three experiments using choice situations, I demonstrate that the sunk-cost effect is not observed for past investments of time, but the effect reappears when the investments are expressed as monetary quantities. I further propose that this ‘pseudo-rationality’ is due to the fact that individuals lack the ability to account for time in the same way as they account for money. In two additional experiments, I facilitate the accounting of time and show that the irrational sunk-cost effect reappears. In a final experiment, I test my propositions in a setting where subjects make real investments of time and subsequently make real choices.
Recently, while applying for my driver license in California, I encountered a section about organ donation. The DMV’s (Department of Motor Vehicles) approach is an example of default.
First, they primed me with two statements:
“One person can save up to 8 lives, and heal over 75, through organ and tissue donation for transplantation. You can register regardless of age or health.”
“Organ donation happens after death, and your decision will not impact medical treatment.”
The first statement emphasizes the positive impact, while the second addresses potential concerns. This balanced approach put me at ease and highlighted benefits.
Then comes the question: “Would you like to register?” with two options: “Yes” or “Not at this time.” This is where default comes into play. By framing the question this way, they make saying “yes” feel like the natural choice.
Interestingly, even if I chose “Not at this time,” I was informed that I am still in the registry but without the pink dot on my license that indicates donor status. This opt-out process requires additional steps, making it more likely for people to remain registered.
This example resonates the findings of Johnson & Goldstein’s 2003 study on how defaults influence decision-making. By designing the process this way, the California DMV is likely increasing organ donation rates without forcing anyone’s hand.
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Reference
Johnson, E. J., & Goldstein, D. (2003). Do defaults save lives? Science, 302(5649), 1338–1339.
“If preferences concerning organ donation are strong, we would expect defaults to have little or no effect. However, as can be seen in the figure, defaults appear to make a large difference: the four opt-in countries (gold) had the lower rates than the six opt-out countries (blue)… One reason these results appear to be greater than those in our laboratory study is that the cost of changing from the default is higher; it involves filling out forms, making phone calls, and sending mail.” (pg. 1339)
Salon de Jungui Lee is a cafe in Jeju island. With minimal construction and a commitment to preserving its essence, the owner of the old house transformed it into a cafe that embodies her philosophy of refined simplicity.
This cafe is a popular destination among Korean coffee lovers. Coffee is excellent, but its desserts are not overly sweet, not sticky, nor heavy treats. To me, each bite was a carefully orchestrated symphony of taste and texture.
Beyond taste, its atmosphere was unique. The pinnacle was the air conditioner vent. Instead of a tasteless plastic vent, a repurposed traditional Korean window frame was hanging on the ceiling. It was functional, beautiful, and deeply rooted in cultural heritage.
While enjoying coffee, dessert, and unique air conditioner vent, I naturally assumed that the vintage speaker pumped out the tunes. However, it was actually a cleverly disguised modern Bose system connected to an iPhone.
Salon de Jungui Lee taught me a valuable lesson about experience. It is not just about the individual components – the coffee, the desserts, or the décor. It is about how these elements come together to create something greater than the sum of its parts.
Recent research has highlighted the notion that people can make judgments and choices by means of two systems that are labeled here tacit (or intuitive) and deliberate (or analytic). Whereas most decisions typically involve both systems, this chapter examines the conditions under which each system is liable to be more effective. This aims to illuminate the age-old issue of whether and when people should trust “intuition” or “analysis.” To do this, a framework is presented to understand how the tacit and deliberate systems work in tandem. Distinctions are also made between the types of information typically used by both systems as well as the characteristics of environments that facilitate or hinder accurate learning by the tacit system. Next, several experiments that have contrasted “intuitive” and “analytic” modes on the same tasks are reviewed. Together, the theoretical framework and experimental evidence leads to specifying the trade-off that characterizes their relative effectiveness. Tacit system responses can be subject to biases. In making deliberate system responses, however, people might not be aware of the “correct rule” to deal with the task they are facing and/or make errors in executing it. Whether tacit or deliberate responses are more valid in particular circumstances requires assessing this trade-off. In this, the probability of making errors in deliberate thought is postulated to be a function of the analytical complexity of the task as perceived by the person. Thus the trade-off is one of bias (in implicit responses) versus analytical complexity (when tasks are handled in deliberate mode). Finally, it is noted that whereas much attention has been paid in the past to helping people make decisions in deliberate mode, efforts should also be directed toward improving ability to make decisions in tacit mode since the effectiveness of decisions clearly depends on both. This therefore represents an important frontier for research.
The broken windows theory, introduced by James Q. Wilson and George L. Kelling in 1982, suggests that visible signs of disorder and misbehavior in an environment encourage further disorder and misbehavior, leading to serious crimes. A classic example is a building with a few broken windows. If left unrepaired, vandals are likely to break more windows, potentially leading to more serious property damage.
During a recent trip to Istanbul, Turkiye, I observed this theory in action through a series of urban landscapes. The following image illustrates the problem. An outside trash and garbage collection area was exposed in a busy commercial district.
In contrast, the following three images demonstrate clever solutions, showcasing how to apply the broken windows theory in urban planning. In the first two images, the trash and garbage collection area was enclosed by an artificial ivy hedge to minimize its visibility from pedestrians. In the last image, the back side of a series of market stalls was enclosed by the decorative wall.
Hiding trash and garbage collection areas may not be a permanent solution. However, doing so will motivate citizens to keep their cities clean. By investing in public spaces, urban planners create environments that naturally deter crime and foster community well-being.
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Reference
Kelling, G. L., & Wilson, J. Q. (1982). Broken windows. Atlantic monthly, 249(3), 29-38.
In the mid-1970s The State of New Jersey announced a “Safe and Clean Neighborhoods Program,” designed to improve the quality of community life in twenty-eight cities. As part of that program, the state provided money to help cities take police officers out of their patrol cars and assign them to walking beats. The governor and other state officials were enthusiastic about using foot patrol as a way of cutting crime, but many police chiefs were skeptical. Foot patrol, in their eyes, had been pretty much discredited. It reduced the mobility of the police, who thus had difficulty responding to citizen calls for service, and it weakened headquarters control over patrol officers…
Design Fixation refers to the tendency to adhere to pre-existing ideas, which hinders innovative design solutions. This research explores the potential of LLM-powered Creativity Support Tools, the ’Behaviorally Informed Creativity Support Tool (BI-CST),’ to facilitate ideation and combat Design Fixation using ’Behavioral Science Theory.’ BI-CST assists in redefning problems and generating new ideas by presenting experimental fndings from Behavioral Sciences that challenge users’ initial concepts, thus providing a deeper understanding of real human behaviors. We will assign three groups to diferent conditions: one designing without generative AI support, one with open-ended generative AI (e.g., ChatGPT), and one using a model trained in behavioral science. We aim to compare the originality, practicality, and general quality of the designs to assess design fxation. This study addresses design fxation through an interdisciplinary approach combining design and behavioral science, aiming to expand users’ perspectives.
Keywords
creativity support tool, human AI collaboration, behavioral science, design fixation, generative AI
… Behavioral science, a sub field of psychology, aims to understand and predict people’s behaviors through scientific methods ranging from casual observation of daily life to systematic observation to minimize the effects of biases [22, 29]. Its research includes behavioral decision theory, which shows people’s heuristics and biases in judgment [9], and builds nudges that gently alter people’s decision making processes [27]. As this field targets problem-solving by understanding people’s psychology, efforts have been made to apply theories of behavioral science in the HCI field to change users’ behavior [13, 14, 19]. However, there has been limited research on incorporating behavioral science into Creativity Support to aid design processes. We assume that the scientific causal and systematic observational results about human behavior from behavioral science can serve as a ’nudge’ to assist users in gaining more diverse perspectives. (pg. 117)
… We hypothesize that participants using a non-behaviorally informed Creativity Support Tool (CST) in Condition B are likely to reinforce their existing heuristics, which could increase their design fixation. In contrast, participants in Condition C, who will be provided with behaviorally informed guidance, are expected to adopt new heuristics that help reduce their fixation on initial ideas. Specifically, we anticipate that the outputs in Condition A and Condition B will likely exhibit medium to high originality but may have low practicality. Conversely, outputs from Condition C are expected to show medium originality but high practicality, due to the application of evidence-based creative support derived from behavioral science research. (pg. 119)
Through the years, the Duncan Anderson Design Lecture Series has invited top professionals to share their knowledge and experience with design students at CSULB. This coming year marks the expansion of that series to a bi-monthly event. Thanks to Cecelia Anderson-Malcolm and the Duncan Anderson Endowment, CSULB now has an ongoing design lecture series to rival those at private design schools. The CSULB Industrial Design Program is working closely with IDSA-LA, and its student chapters, to schedule an exciting line-up of speakers. Please let your chapter officers know of professionals you want to meet and hear at future events.
In this lecture, I introduced why designers have to adopt behavioral science to understand customer experience deeply. For instance, prospect theory neatly elucidates why once people have a single extraordinary experience, they can no longer revert to previously satisfactory mundane experiences. It is because the extraordinary experience can become a reference point, while the mundane experiences transform into sources of negative affect. Since loss looms larger than gain, people avoid mundane experiences.
This paper presents a critique of expected utility theory as a descriptive model of decision making under risk, and develops an alternative model, called prospect theory. Choices among risky prospects exhibit several pervasive effects that are inconsistent with the basic tenets of utility theory. In particular, people underweight outcomes that are merely probable in comparison with outcomes that are obtained with certainty. This tendency, called the certainty effect, contributes to risk aversion in choices involving sure gains and to risk seeking in choices involving sure losses. In addition, people generally discard components that are shared by all prospects under consideration. This tendency, called the isolation effect, leads to inconsistent preferences when the same choice is presented in different forms. An alternative theory of choice is developed, in which value is assigned to gains and losses rather than to final assets and in which probabilities are replaced by decision weights. The value function is normally concave for gains, commonly convex for losses, and is generally steeper for losses than for gains. Decision weights are generally lower than the corresponding probabilities, except in the range of low probabilities. Overweighting of low probabilities may contribute to the attractiveness of both insurance and gambling.
