When incentives become disincentives

It is estimated that 1.3 billion incentive schemes currently exist in the US. It is clear that it is a lucrative practice but what are the effects of incentives on consumer behaviour and what are the consequences of over-confidence in the understanding of incentives? The worlds of behavioural economics and gamification offer a deeper understanding of the human biases that make people behave the way they do and marketers are slowly beginning to see the application of incentives based on the progressive understanding of cognitive biases.

When incentives become disincentives

Brandon EllseTNS Global

As BMW and others have learned, incentive programmes don't always achieve the desired result. Studying behavioural economics and gamification can help, advises TNS Global's Brandon Ellse.

If we ever needed a microcosm of human behaviour, we would surely have to look no further than Hollywood. If the A (and B) listers give us anything at all, it's engrossing high-profile and public relationship squabbles.

Nevertheless, what may often sound like the ramblings of irate couples, actually raises a good question. Why do people behave the way they do? This question has preoccupied thinkers...

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