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    k w e r e g i v e n a f i n a n c i a l i n c e n t i v e

    c h e a t . S u r e e n o u g h , a f t e r n o o n

    i c i p a n t s c h e a t e d 2 0 % m o r e t h a n

    d t h e i r m o r n i n g c o u n t e r p a r t s .

    I n a s e c o n d t r i a l , a f t e r n o o n v o l -

    t e e r s n o t o n l y c h e a t e d m o r e o n

    t h e p e r c e p t i o n t a s k b u t s h o w e d

    : o w e r m o r a l a w a r e n e s s . G i v e n f o u r

    o r d f r a g m e n t s t o c o m p l e t e , i n c l u d -

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    p e r h a p s m o r n i n g p e o p l e a r e j u s t

    m o r e e t h i c a l - a n d t h e p o s s i b i l i t y

    t h a t m o o d p l a y e d a r o l e , t h e r e -

    s e a r c h e r s t r i e d y e t a n o t h e r e x p e r i -

    m e n t , t h i s t i m e g i v i n g p a r t i c i p a n t s

    a n i n c e n t i v e t o l i e a b o u t s o m e t h i n g .

    V o l u n t e e r s w e r e a s s i g n e d r a n d o m l y

    t o a m o r n i n g o r a f t e r n o o n s l o t a n d ,

    p r e d i c t a b l y , a f t e r n o o n p a r t i c i p a n t s

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    I n a f o u r t h e x p e r i m e n t , t h e s c i e n -

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    f e c t w a s e s p e c i a l l y s t r o n g a m o n g

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    m o d i f y i n g t h e i r e t h i c a l b e l i e f s t o r e -

    d u c e g u i l t o r s e l f - f l a g e l l a t i o n .

    W h a t a c c o u n t s f o r a l l t h i s ? C o n -

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    m e n t a l f a t i g u e s e t s i n f r o m h o u r s o f

    d e c i s i o n - m a k i n g a n d s e l f - r e g u l a t i o n ,

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    ' ' U n r e m a r k a b l e d a i l y a c t i v i t i e s , ' ' t h e

    r e s e a r c h e r s w r i t e , c a n p r o d u c e d e -

    p l e t i o n t h a t l e a d s t h e m " t o a c t i n

    e t h i c a l l y q u e s t i o n a b l e w a y s . "

    S i n c e s o m a n y o f u s a r e f e d u p

    w i t h o u r b e t t e r a n g e l s b y a f t e r n o o n ,

    t h e f i n d i n g s s u g g e s t t h a t " m o r a l l y

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    I n f l u e n c e o f T i m e o f D a y o n U n e t h i -

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    V i t a m i n w a t e r

    I p r e f e r d r i n k i n g w a t e r t o h y d r a t e m y s e l f w h i l e w o r k o u t s , h o w e v e r , w h e n f e e l l i k e t r y i n g

    s o m e t h i n g s w e e t t o d r i n k b e s i d e s r e a l w a t e r , i ' d g o f o r G l a c e a u V i t a m i n w a t e r .

    S o m e t i m e s a t s c h o o l l i b r a r y I p u r c h a s e t h i s e n h a n c e d p r o d u c t w h e n d a i l y c a f f e i n e l i m i t i s

    r e a c h e d , n e e d s o m e a l t e r n a t i v e s ( l a u g h )

    l e t ' s n o t t o u c h o n t h e s u b j e c t s w h e t h e r t h e p r o d u c t s a r e a c t u a l l y g o o d f o r o u r b o d y o r n o t , t h e

    p o i n t i s I t h i n k t h e r e ' s s o m e g e n i u s m a r k e t i n g a t h a n d ( a n d t h e y ' v e g o t m e )

    1 ) T h e b o t t l e s a r e b e a u t i f u l , c o l o r f u l , a n d t h e t e x t o n t h e m i s s n a p p y a n d c l e v e r .

    2 ) T h e y h a v e e m p o w e r i n g f l a v o r n a m e s . H e r e ' s t h e l i s t :

    P o w e r - C

    D e f e n s e

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    x x x

    f e e l i n g m o r e e n e r g e t i c j u s t b y s e e i n g t h e f l a v o r n a m e s ?

    3 ) T h e y o f f e r Z E R O - C A L O R I E p r o d u c t s . S o m e t h i n g m i s s e d t o m e n t i o n a b o v e , G l a c e a u i s a

    p r i v a t e l y o w n e d s u b s i d i a r y o f C o c o - C o l a C o m p a n y . C o k e Z e r o , o r d i e t C o k e a r e t h e s u c c e s s

    c a s e s o f C o c a - C o l a C o . i n t h e r e c e n t y e a r s , t h e r e i s n o r e a s o n t h a t t h e y d o n o t a p p l y t h e

    s a m e s t r a t e g y a n d l a u n c h t h e l i k e w i s e p r o d u c t s : S w e e t e n e d b e v e r a g e s w i t h o u t a n y c a l o r i e s .

    4 ) B e s i d e s t h e t r e n d y & s t y l i s h b o t t l e a t t r a c t i n g y o u n g f o l k s , V i t a m i n w a t e r a d s g a i n m o r e s c r e e n

    t i m e . I ' m n o t t a l k i n g a b o u t t h e n o r m a l ' 3 0 s t e l e v i s i o n a d s w h i c h c o n s p i c u o u s l y a r e

    a d v e r t i s i n g p r o d u c t s , r a t h e r , i n c r e a s i n g i t s e x p o s u r e i n T V s h o w s . I n G o s s i p G i r l S e a s o n 4 ,

    B l a i r s m o m m e n t i o n s t h e " V i t a m i n W a t e r D e s i g n C o m p e t i t i o n " ( w h a t t h e a d v e r t i s e r i s t r y i n g

    s u b t l y c o n v e y t o y o u ! )

    T h i s i s t h e p r a c t i c e o f p r o d u c t p l a c e m e n t , o r e m b e d d e d m a r k e t i n g , i n w h i c h a d v e r t i s e r s p a y t o

    h a v e t h e i r p r o d u c t s o r l o g o s a p p e a r d u r i n g a p r o g r a m . C e r t a i n a d v e r t i s i n g t e c h n i q u e h a s b e e n

    i n t e n s i f i e d i n r e c e n t y e a r s . Y o u m a y w o n d e r i f i t i s a w o r t h y i n v e s t m e n t , w e l l , p s y c h o l o g i c a l l y &

    t e c h n i c a l l y , i t i s . I t ' s t h e M e r e - e x p o s u r e e f f e c t , a p h e n o m e n o n b y w h i c h p e o p l e t e n d t o d e v e l o p

    a p r e f e r e n c e f o r t h i n g s m e r e l y b e c a u s e t h e y a r e f a m i l i a r w i t h t h e m . P e o p l e i n h e r e n t l y h a v e

    p r e f e r e n c e a n d l i k i n g f o r p e o p l e o r o b j e c t s t h e y a r e f a m i l i a r w i t h .

  • S e e t h e V i t a m i n w a t e r b a c k t h e r e ?

    T h e y ' r e e v e r y w h e r e !

    D e c a d e s a g o p s y c h o l o g i s t s d i s c o v e r e d

    t h a t s i m p l y b e i n g c l o s e i n p h y s i c a l

    p r o x i m i t y t o a n o t h e r p e r s o n i n c r e a s e s

    l i k i n g a n d a t t r a c t i o n f o r t h a t p e r s o n .

    C o l l e g e s t u d e n t s i n d o r m h o u s i n g l i k e d

    t h e i r n e i g h b o r s m o r e t h a n p e o p l e l i v i n g

    o n o t h e r f l o o r s o r b u i l d i n g , m a l e s t u d e n t s

    l i k e f a m i l i a r w o m e n m o r e t h a n s t r a n g e r s -

    s i m p l y f o r a p p e a r i n g i n t h e i r c l a s s r o o m

    t h r o u g h o u t t h e s e m e s t e r , d e s p i t e n o t e v e n

    s o m u c h a s s a y i n g " h e l l o . " T h e m o r e

    t i m e s p e n t n e a r s o m e o n e , t h e m o r e

    p e o p l e f e e l t h a t t h e y " k n o w " t h a t p e r s o n ,

    a n d f e e l c o m f o r t a b l e b e i n g a r o u n d t h e m .

    T h i s f e e l i n g o f f a m i l i a r i t y c o n t r i b u t e s t o

    a t t r a c t i o n .

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    t h e g r e a t e f f e c t :

    I f y o u ' v e s e e n " H o w I M e t Y o u r

    M o t h e r " ( a p o p u l a r s i t c o m a b o u t

    f i v e y o u n g a d u l t s i n N e w Y o r k a n d

    t h e i r r e l a t i o n s h i p / f r i e n d s h i p s ) ,

    t h e m e r e e x p o s u r e p h e n o m e n o n w a s i n f u l l e f f e c t a n d i l l u s t r a t e d c r e a t i v e l y t h r o u g h B a r n e y

    S t i n s o n ' s " M e r m a i d T h e o r y . " M e n w i l l e v e n t u a l l y f e e l s e x u a l l y a t t r a c t e d t o a w o m e n s i m p l y a s a r e s u l t o f

    s p e n d i n g t i m e w i t h t h e m , e v e n i f t h e y i n i t i a l l y d o n ' t f i n d t h e s e w o m e n a t t r a c t i v e a t a l l . E V e n t h e l e a s t p h y s i c a l l y

    a t t r a c t i v e p e o p l e ( m a n a t e e s ' ' ) w i l l e v e n t u a l l y l o o k l i k e m e r m a i d s .

    Y o u s e e h o w G l a c e a u m a r k e t s t h e i r- p r o d u c t s n o t - s o - c o n s p i c u o u s l y y e t w i s e l y ? Y o u g o t t a l o v e

    V i t a m i n w a t e r a n d i t s c r o s s - p r o m o t i o n a l e f f o r t s .

  • r, Oi\1rtlJ~' ~ ' ' 1 P . ' t f , O l .

    R e m o v e t h e " $ " s i g n f r o m y o u r m e n u !

    C h i p o t l e ( a c h a i n r e s t a u r a n t s p e c i a l i z i n g i n M e x i c a n b u r r i t o s a n d t a c o s ) h a s a l w a y s b e e n m y

    f a v o r i t e g r a b - t o - g o o p t i o n w h e n i n a h u r r y . I a l w a y s c a t e g o r i z e d C h i p o t l e a s a f a s t f o o d

    r e s t a u r a n t , n o t b e c a u s e i t o f f e r s f r i e d j u n k f o o d s ( C h i p o t l e a c t u a l l y ' s k n o w n f o r i t s u s e o f

    n a t u r a l i n g r e d i e n t s ) , b u t i t s a s s e m b l y - l i n e p r o d u c t i o n t h a t s p e e d u p t h e p r e p a r a t i o n

    t i m e ( r e m i n d s m e o f S t a n d a r d Q p e r a t i n g f r o c e d u r e . . ) W h e n I w a s w a i t i n g i n l i n e ( C h i p o t l e ' s

    u s u a l l y p a c k e d w i t h s t u d e n t s d u r i n g b r e a k t i m e ) f e w d a y s a g o , I f o u n d a n i n t e r e s t i n g f a c t :

    T h e r e ' s n o d o l l a r s y m b o l ( $ ) o n t h e m e n u b a r .

    I t s u r p r i s e d m e , r e a l l y , o r i t ' s p r o b a b l y j u s t m e w h o ' v e b e e n t a k i n g t h e p r e s e n c e o f d o l l a r s i g n

    f o r g r a n t e d ? T h e m i s s i n g o f $ t r u l y p u z z l e d m e . T h e n t h e f o l l o w i n g d a y w h e n I w a s h a v i n g

    d i n n e r i n a q u i t e f i n e d i n i n g p l a c e l o c a t e d i n d o w n t o w n A n n A r b o r , I t o o k p a r t i c u l a r a t t e n t i o n

    o n i t s m e n u a n d f o u n d t h e d o l l a r s i g n w a s n o t s h o w i n g e i t h e r , t h e r e w e r e o n l y n u m e r a l s , n o

    " $ " , n o " d o l l a r " s p e l l e d o u t .

    W h y d o r e s t a u r a n t s t o d a y r e m o v e t h e " $ " s i g n f r o m t h e i r m e n u ? l t . ' s a l l a b o u t P s y c h o l o g i c a l

    P r i c i n g . H e r e ' s a e x a m p l e y o u m a y b e p r e t t y f a m i l i a r w i t h :

    $ 1 9 9 . 9 9 f o r a l u x u r y b r a n d s u n g l a s s e s ? S o u n d s p r e t t y f a i r . W h a t a b o u t $ 2 0 0 ? a r e y o u

    r e c o n s i d e r i n g t o m a k e t h e p u r c h a s e w h e n i t ' s o n s a l e ?

    P r i c e s t h a t h a v e e n d d i g i t s o f n i n e , 9 9 , o r 9 5 , w i l l r e s u l t i n c o n s u m e r s b e l i e v i n g t h e y ' r e g e t t i n g

    a s a v i n g , a n d e v e n i f t h a t s a v i n g i s o n l y 1 p e n n y ( l i k e t h e o n e a b o v e ) , c u s t o m e r s m a y f e e l m o r e

    c o n f i d e n t a b o u t m a k i n g a p u r c h a s e .

    P s y c h o l o g i c a l P r i c i n g : t h e p r a c t i c e o f s e t t i n g p r i c e s l i g h t l y l o w e r t h a n r o u n d e d n u m b e r s , i n t h e

    b e l i e f t h a t c u s t o m e r s d o n o t r o u n d u p t h e s e p r i c e s , a n d s o w i l l t r e a t t h e m a s l o w e r p r i c e s t h a n t h . e y

    r e a l l y a r e . T h i s p r a c t i c e i s b a s e d o n t h e b e l i e f t h a t c u s t o m e r s t e n d t o p r o c e s s a p r i c e f r o m t h e l e f t - m o s t

    d i g i t t o t h e r i g h t , a n d s o w i l l t e n d t o i g n o r e t h e l a s t f e w d i g i t o f a p r i c e .

    I f t o e x p l a i n t h e e f f e c t f u r t h e r , o r r e l a t e i t t o m o r e p s y c h o l o g i c a l c o n c e p t s , I w o u l d s a y t h a t i t ' s

    t h i s " P r i m a c y E f f e c t " w h i c h ' s p l a y i n g t h e t r i c k . B y d e f i n i t i o n , p r i m a c y e f f e c t i s t h e t e n d e n c y f o r

    t h e f i r s t i t e m s p r e s e n t e d i n a s e r i e s t o b e r e m e m b e r e d b e t t e r o r m o r e e a s i l y , o r f o r t h e m t o b e

    m o r e i n f l u e n t i a l t h a n t h o s e p r e s e n t e d i n t h e s e r i e s . ( f o r e x a m p l e , i f y o u h e a r a l o n g l i s t o f

    w o r d s , i t ' s m o r e l i k e l y t h a t y o u w i l l r e m e _m b e r t h e w o r d s y o u h e a r d f i r s t , w h i c h i s t h e

    b e g i n n i n g o f t h e l i s t ) S o w h e n c u s t o m e r s a r e p r e s e n t e d t w o p r i c e s , o n e s t a r t s w i t h 1 ( $ 1 9 9 . 9 9 )

    a n d t h e o t h e r s t a r t s w i t h 2 ( $ 2 0 0 ) , i t w o u l d m a k e a b i g d i f f e r e n c e i n t h e i r m i n d s e t .

    O K , s o w h a t a b o u t t h e $ s i g n ?

    A n e m p i r i c a l r e s e a r c h , c o n d u c t e d b y C o r n e l l S c h o o l o f H o t e l A d m i n i s t r a t i o n , e x a m i n e s h o w

    c u s t o m e r s r e a c t e d t o m e n u s ' p r i c e f o r m a t t i n g i n t e r m s o f a c t u a l s a l e s , a s m e a s u r e d b y c h e c k

    t o t a l s f o r l u n c h a t S t . A n d r e w ' s , t h e r e s t a u r a n t a t t h e C u l i n a r y I n s t i t u t e o f A m e r i c a , i n H y d e

    P a r k , N e w Y o r k . P r i c e f o r m a t s t e s t e d i n t h e s t u d y w e r e a d o l l a r s a n d c e n t s n u m e r i c a l f o r m a t e

    w i t h a d o l l a r s i g n ( $ 0 0 . 0 0 ) , a n u m e r i c a l f o r m a t w i t h o u t a d o l l a r s i g n ( O O . ) , a n d s c r i p t e d o r

    w r i t t e n - o u t p r i c e s ( z e r o d o l l a r s ) . T h e r e s u l t s s h o w t h a t g u e s t s g i v e n t h e n u m e r a l - o n l y m e n u

    s p e n t s i g n i f i c a n t l y m o r e t h a n t h o s e w h o r e c e i v e d a m e n u w i t h p r i c e s s h o w i n g a d o l l a r s i g n o r

    t h o s e w h o s e m e n u h a d p r i c e s w r i t t e n o u t i n w o r d s .

    S o I t h i n k i t ' s n o t b o t h r e s t a u r a n t s I v i s i t e d m i s s e d t o p u t o n t h e d o l l a r s i g n , b u t t h e y ' r e u s i n g

    s u b t l e c u e s t o a t t r a c t d i n e r s .

    N e x t t i m e w h e n y o u ' r e p l a n n i n g t o o p e n a r e s t a u r a n t b u s i n e s s , d o n ' t f o r g e t t o t a k e a d v a n t a g e

    o f p s y c h o l o g i c a l i n f l u e n c e s t o h e l p p r o m o t e m e n u i t e m s - i t ' s o n e o f t h e b e s t w a y s t o i n c r e a s e

    c h e c k s i z e .

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    A f e w d a y s a g o o n e o f m y s u i t e - m a t e s a s k e d f o r m y a d v i c e a b o u t t h e d r e s s e s s h e p u r c h a s e d

    o n t h e F o r e v e r 2 1 o n l i n e s t o r e . I a s k e d h e r w h y n o t j u s t g o t o t h e r e t a i l s t o r e a n d s e e h o w t h e

    d r e s s e s r e a l l y l o o k l i k e , f o r t h a t p e r s o n a l l y I p r e f e r b r o w s e i n s t o r e , a n d s h e s a i d , " I l o v e h o w

    b i g o f a s e l e c t i o n t h e y h a v e , b u t t h e s t o r e ' s t o o b i g . . . s o i t ' s i m p o s s i b l e t o f i n d a n y t h i n g

    s p e c i f i c . I t ' s l e s s t i r i n g t o b r o w s e i t o n l i n e . "

    T h a t ' s q u i t e t r u e . F o r e v e r 2 1 i s k n o w n f o r o f f e r i n g s h o p p e r s a w i d e s e l e c t i o n o f t r e n d y c l o t h i n g

    a n d a c c e s s o r i e s a t a f f o r d a b l e p r i c e s , b u t i t ' s p h y s i c a l l y i m p o s s i b l e t o . s p e n d t i m e i n F o r e v e r 2 1

    a n d l e a v e w a n t i n g t o c o n t i n u e s h o p p i n g e l s e w h e r e . N o t b e c a u s e y o u b o u g h t s o m a n y c r o p t o p s

    a n d s k i r t s a n d c a n ' t p o s s i b l y s p e n d m o r e m o n e y , b u t b e c a u s e y o u ' r e s o e x h a u s t e d f r o m

    l o o k i n g t h r o u g h r a c k s a n d r a c k s o f m e r c h a n d i s e . T h e t i r e d n e s s h a p p e n s t o e v e r y o n e a n d i t ' s

    c a l l e d t h e d e c i s i o n f a t i g u e , t h e d e t e r i o r a t i n g q u a l i t y o f d e c i s i o n s m a d e b y a n i n d i v i d u a l , a f t e r a

    l o n g s e s s i o n o f d e c i s i o n m a k i n g . ( P r o b a b l y t h a t ' s w h y I c a n n o t h e l p c r a v i n g o n s n a c k s w h i l e

    p u l l i n g a l l n i g h t e r s , i t n o w m a k e s . s e n s e t o m e - I h a v e l e s s w i l l p o w e r a f t e r a l o n g d a y a n d I ' m

    s t a r t i n g t o m a k e p o o r d e c i s i o n s )

    P r o f e s s o r B a b a S h i v f r o m S t a n f o r d U n i v e r s i t y h a s c o n d u c t e d a f a m o u s e x p e r i m e n t :

    T w o g r o u p s o f p e o p l e w e r e g i v e n d i f f e r e n t m e n t a l t a s k s ( m e m o r i z i n g a 2 - d i g i t o r 7 - d i g i t

    n u m b e r ) . W h e n t h e y w e r e f i n i s h e d , t h e s t u d e n t s h a d t h e c h o i c e o f a p i e c e o f c a k e , o r a b o w l o f

    f r u i t . T h o s e w h o h a d f a c e d t h e m o r e m e n t a l l y t a x i n g t a s k w e r e s i g n i f i c a n t l y m o r e l i k e l y t o

    c h o o s e t h e c a k e . T h e r e s u l t ' s s u r p r i s i n g , b u t w h a t h a p p e n e d i s t h a t w i l l p o w e r a n d f o c u s a n d

    c o n c e n t r a t i o n a n d w o r k i n g o n p r o b l e m - s o l v i n g a r e a l l c o m i n g f r o m t h e s a m e p o o l o f c o g n i t i v e

    r e s o u r c e s , w h i c h i s a s c a r c e r e s o u r c e t h a t ' s e a s i l y d e p l e t e d . T h a t e x p l a i n s w h y w e ' r e t e m p t e d

    b y t h e c a n d y i n t h e c h e c k o u t l a n d a f t e r a m a r a t h o n g r o c e r y t r i p .

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    s u r p r i s e y o u ! T h e l a s t t i m e I w e n t t h e r e t h e y w e r e s e l l i n g H i - C h e w ( a f r u i t - f l a v o r e d c h e w y

    J a p a n e s e c a n d y ) !

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    F o c u s C o n / u s i o n F r u s t r a t i o n S e l f - C o n t r o l B o r e d o m A n x i e t y C o n c e n t r a t i o n C h o i c e

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