July 2, 2013
It seems that money can buy happiness but only if you spend it in the right way. In their new book, Happy Money: The Science of Smarter Spending, Elizabeth Dunn and Michael Norton lay out the five principles for turning cash into pleasure:
- Buy experiences. Activities like concerts, days out and vacations are more satisfying than buying objects.
- Make it a luxury. Only have your favourite things occasionally, that way you will continue to enjoy them.
- Buy time. Extra time and the freedom to do what you want are more satisfying than money.
- Delay gratification. Having to wait will make you appreciate things more, so buy now and experience later.
- Treat others. Spending money on other people makes us happier than spending it on ourselves.
What’s this got to do with business? To pick one of the above – Make it a luxury – this can be used to shape behaviour by using the power of scarcity. People are programmed to want things more if there is limited availability (the power of ‘sales’); and if it’s memorable, which can of course be enhanced by having to wait (the power of anticipation)…
Book: Happy Money: The Science of Smarter Spending by Elizabeth Dunn and Michael Norton (Simon & Schuster, 2013)
Talk: Great presentation by Michael Norton:
August 23, 2011
Does emotion operate at a societal level? Does mood influence the way in which we collectively make decisions? It would seem so. There’s all sorts of stuff out there now on ‘sentiment tracking’ and whether it’s linked to measures of economic activity like the stock market. Well, interestingly, it seems that global emotion and mood, as measured via something like Twitter, does predict stock market activity. Indeed trading seems to lag behind positive or negative Tweeting! Or, if you’re using the fancy stuff, tweets analysed in terms of the Google Profile of Mood States (Calm, Alert, Sure, Vital, Kind and Happy). And no, I’m not making this stuff up. And yes, you’re right, there’s money to be made here!
Read one of the original papers at: http://www.battleofthequants.com/Research/sdarticle.pdf
Also, if you’re quick, you can listen to this BBC Radio 4 programme on the topic: Word of Mouth: Counting Word Incidences
May 16, 2011
It seems your Smartphone use predicts your social life, travel interests, risk of disease and even your political views. Have a look at this post on Dr Shock’s blog (links to Wall Street Journal video):