C7

Present bias

» Get people to imagine their future self and explore their long-term goals » Make these goals more tangible for people to see » Show what your future self might miss out on

Research. An analysis with an online grocer revealed that people buy more items they “want” (e.g. ice cream) when the delivery time is short. As duration of the delivery increases, customers spend less, order a higher percentage of “should” items (eg. vegetables), and order a lower percentage of “want” items.

Milkman, K. L. et. al. (2010). I’ll have the ice cream soon and the vegetables later

“Ignoring the facts for short-term gain will almost always bring long-term pain.”

Case study. Academics at Stanford created an avatar for people to visualise their future selves including their financial status using virtual reality. Participants that were connected with their future selves indicated that they would increase their savings.