Xcelerate Design

In this video, we are not going to look at any particular behavioral economics principle as we usually do but rather we are going to look at some foundational concepts. There are other foundational concepts than what I would cover today but if you have to start learning about behavioral economics it's good to clarify these concepts first as without understanding these concepts, it would be almost impossible to learn behavioral economics. Let’s see what those are.  If you look carefully, most behavioral economics principle names will have terms such as Heuristics, Bias or Effect. For example - Action Bias or Availability Heuristics or Bandwagon Effect. We are going to see what these three terminologies mean in behavioral science and economics - Heuristics, Bias and Effect.  Let’s see them one by one... Heuristics  Heuristics are cognitive shortcuts that help us make quick judgements and decisions based on whatever information we have from our past experiences and whatever ...

  I worked so hard for this video that I should be given Best YouTuber of India award!  ...Dhishum…..- Let’s see what the IKEA effect is. Shall we?  IKEA effect states that the more effort we put into something, the greater love we develop for that particular creation and we often overvalue that creation even when they are poorly constructed or designed.  Now let’s see why it is called the IKEA effect. In 2011, Mr. Norton and his colleagues conducted an experiment at the IKEA store to find out how people value their products.  To their surprise, participants were willing to pay 63% more for the self assembled furniture than the readymade ones. Moreover, participants were willing to pay even a higher price for the furniture they have to assemble completely on their own rather than just partially assembled furniture.  The IKEA effect experiment changed the perception of product strategists and designers from looking at customers as merely "recipients of value...