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An agency in the Netherlands comes up with a clever piece of choice architecture for every coffee or sandwich shop in a college town:

(CoffeeCompany) wanted to attract more students. So it installed WiFi in some of its stores near universities. The problem is lots of students just come into the store for the WiFi but hardly look at the menu. So (a marketing firm) and CoffeeCompany decided to move the store’s menu into the WiFi menu of customers’ laptops (and iPhones).

In case you can’t read the last line on this image it reads: “The best part came when people yelled across the room to ask the barista what the name of the WiFi network was and the barista answered one of the WiFi lines like, “OrderAnotherCoffeeAlready.”

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The wireless network menu also always includes lines alerting customers to food and drink specials.

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Hat tip: Jordan Lloyd

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This month’s Capital Ideas, published by the University of Chicago Graduate School of Business, features work done by our colleague Oleg Urminsky on the relationship between rewards and human efforts and motivations. The classic work on this puzzle was conducted in the 1930s by psychologist Clark Hull who noticed that rats ran faster as they moved closer to food. (Food they could see on a straight runway, that is.) Sensing the propinquity of the reward, the rats worked harder to obtain it. Hull called this phenomenon the “goal-gradient” hypothesis.

Urminsky, along with Ran Kivetz of Columbia University and Yuhuang Zheng of Fordham University, turned their attention to customer reward programs to further study Hull’s hypothesis, by analyzing how the distance to a final reward affected customers’ purchasing decisions.

Continue reading the post here.

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