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Choiceology with Katy Milkman

So Close to the Prize: With Guests Oleg Urminsky & Brian Zinn

Choiceology with Katy Milkman

Charles Schwab

Investing, Social Sciences, Behavioral Economics, Science, Society & Culture, Decision Making, Charles Schwab, Dan Heath, Business, Katy Milkman

4.71.5K Ratings

🗓️ 13 April 2020

⏱️ 37 minutes

🧾️ Download transcript

Summary

If you’ve ever signed up for a frequent flyer program, chances are good that you were awarded a certain number of bonus points to start. Those bonus points feel like a nice little gift, but they also serve another purpose: to increase your motivation to participate in the program. In this episode of Choiceology with Katy Milkman, we explore how your proximity to a goal can affect the way you behave. You’ll hear the fascinating story of Brian Zinn and his decade-spanning quest to unravel an elaborate riddle. When Brian was a college student, he stumbled upon a book called The Secret: A Treasure Hunt. In it were 12 cryptic puzzles—arcane verses and mysterious images that, when paired and solved, would point readers to 12 treasures buried in undisclosed locations around the United States. The treasure hunt was a harmless pastime during Brian’s college days, but when he rediscovered the book years later, it became something of an obsession. You’ll learn about his escalating adventures attempting to locate one of the book’s hidden treasures. Since the publication of The Secret nearly 40 years ago, only three of the 12 treasures have ever been found. Next, Oleg Urminsky joins Katy to reveal the behavioral mechanisms that drive us to increase our efforts as we approach a goal, or perceive that we’re approaching a goal. Urminsky’s research led him to demonstrate surprising shifts in behavior using a simple coffee card loyalty program. Oleg Urminsky is a professor of marketing at the University of Chicago Booth School of Business.

Transcript

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0:00.0

Welcome to a speedy car wash.

0:07.0

Yeah, hi, I'll take the deluxe wash.

0:11.0

No, no wax, please.

0:13.0

Okay, deluxe wash, no wax.

0:16.0

All right, please pull up to the first window.

0:19.0

So that would be 1295.

0:24.0

Thank you.

0:25.0

Oh, also, we're starting a new promotion today.

0:28.0

If you purchase five washes, your sixth one is free.

0:32.0

Here's a stamp card. it's good at any location. Okay sounds good. Thanks.

0:38.0

You've probably been in this situation at a coffee shop or the dry cleaners or a fast food restaurant.

0:44.0

You're offered a loyalty card that comes with a free perk after a certain number of purchases.

0:50.0

I'm going to tweak this scenario just a bit.

0:53.0

See if this feels any different.

0:55.0

Welcome to a speedy car wash.

0:57.0

Yeah, hi. I'll take the deluxe wash.

1:00.0

No wax, please.

1:02.0

Okay, deluxe wash. No wax, no wax, please.

1:06.0

Okay, deluxe wash, no wax.

1:09.0

All right, please pull up to the first window.

1:25.4

That'll be 1295. Thank you. Also, we're starting a new promotion today. If you purchase 10 washes, your 11th one is free. Here's a stamp card. It's good at any location and

1:34.0

there I've stamped the first five for you. Oh,'s super nice thank you. No problem.

...

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