Behavioral Economics + Airbnb
Why Airbnb?
It all begins with an idea. Maybe you want to launch a business. Maybe you want to turn a hobby into something more. Or maybe you have a creative project to share with the world. Whatever it is, the way you tell your story online can make all the difference.
Let’s interpret ‘Behavioral Economics’ into UX designer’s point of view
Why Behavioral Economics?
BE the assumption is that people will not behave in the most “rational” manner. Dan Ariely, Professor of Psychology and Behavioral Economics at Duke University and the founder of The Center for Advanced Hindsight, wrote an entire book on the subject — Predictably Irrational.
https://hbr.org/2015/05/from-economic-man-to-behavioral-economics
https://movingworlds.org/behavioral-economics-for-social-impact
1. Goal-priming
If people are failing, they look inept. If people are succeeding, they look strong and good and competent. That’s the ‘halo effect.’ Your first impression of a thing sets up your subsequent beliefs. If the company looks inept to you, you may assume everything else they do is inept. — Daniel Kahneman
2. Awakening Curiosity
If people are failing, they look inept. If people are succeeding, they look strong and good and competent. That’s the ‘halo effect.’ Your first impression of a thing sets up your subsequent beliefs. If the company looks inept to you, you may assume everything else they do is inept. — Daniel Kahneman
3. Halo vs Horn effect
If people are failing, they look inept. If people are succeeding, they look strong and good and competent. That’s the ‘halo effect.’ Your first impression of a thing sets up your subsequent beliefs. If the company looks inept to you, you may assume everything else they do is inept. — Daniel Kahneman
4. Default to trust & Social Norms
People are biased to trust those who are like them. & Who a person is surrounded by, and how closely they relate to those people, will influence what they do.
5. 6 options are the best
Well the table with the most choice was the most visited table. People tasted a lot of jam when they had 24 options to choose from. However, despite this, the people who visited the table with just 6 options to choose from bought TEN TIMES as much jam as those who visited the table with 24 options!
So what’s going on? The theory is that human beings are not very good at processing lots of information. In general, we can only handle 7 pieces of information (plus or minus 2 pieces) at any one time.
Make it stand out.
Feature 1.
Goal - priming + Awakening Curiosity
Make it stand out.
Feature 2.
Halo effect + Social norm + 6 options rule
Make it stand out.
Feature 3.
Loss aversion
What’s next step?
It all begins with an idea. Maybe you want to launch a business. Maybe you want to turn a hobby into something more. Or maybe you have a creative project to share with the world. Whatever it is, the way you tell your story online can make all the difference.