MRKT 452 Lecture Notes - Lecture 17: Self-Control, Loss Aversion, Precommitment
11 Jun 2018
School
Department
Course
Professor
Self%Control%-how$much$long-term$gains$are$valued$over$short-term$pains
High%=%accept$immediate$pain$for$later$gain
•
Low%=%seek$immediate$gain,$but$suffer$later$pain
•
Required$when$strong$emotions$are$present$(positive/negative)$=$e.g.$desire$
and$anger
•
Importance%of%Self%Control%-marshmallow$experiment
Benefits
Success&in&life&
Happiness&in&life
More$social$competence$
•
More$personally$effective
•
More$self-assertive
•
Better$able$to$cope$with$life's$frustrations
•
Less$likely$to$go$to$pieces$under$stress$
•
Less$likely$to$become$disorganized$under$pressure
•
More$persistent$in$the$face$of$difficulties
•
More$self$reliant$and$confident
•
More$trustworthy$and$dependable
•
More$initiating$and$motivated$with$projects
•
Still$able$to$delay$gratification$in$pursuit$of$goals
•
More$academically$successful
•
Better$at$concentration$and$planning
•
More$eager$to$learn
•
Better&Decisions
Increasing%Self-Control:%Baumeister%Model%of%Self-Control
Goals%-what$you$want$to$accomplish
General$Goals$=$health,$learning,$etc.
○
Specific$Goals$=$lose$10$kg,$learn$French,$etc.
○
Clarity$=$know$specifically$what$you$want
Do$online$research$before$shopping
§
Make$a$shopping$list
§
Window$shopping$is$a$bad$idea
§
○
Conflict$=$less$self-control$as$it$causes$negative$feelings$(immediate$
gains$are$valued$more)
Save$money$vs.$look$good
§
High$GPA$vs.$party$hard
§
Resolve$goal$conflicts$in$advance
§
○
Monitoring%-what$is$your$progress
Keep$track$of$your$behavior
○
E.g.%record$daily$meals,$track$daily$exercise,$ keep$a$log$of$study$hours,$
note$daily$expenses,$mirrors$in$the$gym,$etc.
Capacity%-what$is$self-control$like
Muscle Self$control$reduces%with$use
Light$switch Self$control$constant%with$use
Swimming$ Self$control$improves with$use
Be$careful$when$you$are$tired$(physically/mentally)$=$self-control$is$like$a$
muscle
•
Don't$go$grocery$shopping$when$hungry$=$will$act$as$a$strong$desire•
Block$that$urge$=$put$barriers$to$preempt$strong$desires•
Think$about$your$goals$=$clarify$&$resolve•
Large%Portion%Sizes
Perception$of$value$changes$=$psychological•
The$reference$ point$becomes$larger•
Feeling$full$comes$later$•
People$are$conditioned$to$accepting$the$value$as$normal•
Anytime$you$get$something$less,$you$think$its$not$worth$your$money$•
Eating$large$portions$from$when$you$were$young,$makes$your$body$used$to$it$
=$physiological
•
Loss$aversion$for$a$firm,$if$been$offering$large$sizes$and$then$reduce$it•
Calorie$intake$is$increased$by:
More$choices
○
More$convenience
○
Larger$portion$sizes
○
Evolutionary$influences
Preference$for$fat$&$sugar$=$high$energy$density
§
Preference$for$salt$=$taste
§
Storing$of$excess$calories$=$feast$and$famine
§
○
•
Healthy%Eating%-tricks,$techniques,$and$self-control$methods
Smaller$plates$=$reference$point•
Cut$food$into$smaller$pieces$=$availability$heuristic•
Sit$looking$away$from$buffet$=$weaker$emotions•
Sit$far$away$from$buffet$=$give$time$for$thoughts,$not$feelings$to$dominate•
First$browse,$then$pick$=$give$time$for$thoughts,$not$feelings$to$dominate•
Promise$to$pay$companion$If$you$have$leftovers$=$thoughts$of$money,$not$
feelings$about$food
•
Eat$with$small$eaters$=$social$proof•
Drink$a$glass$of$water$first$=$physiological$satiation•
Don't$go$to$a$buffet$when$extremely$ hungry$=$feelings,$not$thoughts$will$
dominate
•
Pre-commitment%-making$a$binding$decision$ahead$of$time
Exchange$credit$card$with$friend$before$shopping•
Temptation$blocker$program•
Exclusion$lists$in$casinos•
Buy$a$home$in$the$suburbs
Away$from$bars
○
Time,$energy,$money$constraints$on$drinking$out
○
•
Effective$When:
Make$credible$pre-commitments$=$cannot$be$readily$changed
○
Initially$smaller$then$later$larger$pre-commitments$=$consistency$norm
○
Include$it$to$pleasurable$goal
○
Techniques
Reduce%Temptation
Structural$Barriers$-imposed$by$self$and$others
○
Memory$=$reduce$all$the$mental$associations$behind$the$temptation
○
1.
Increase%Self%Control
Goals,$Monitoring,$Capacity
Clear$Goals$
Look$at$restaurant$menu$online$at$home□
Decide$your$budget$in$advance$□
§
Keep$Monitoring
Keep$empty$plates$on$the$table□
§
Increase$Capacity
Eat$earlier$ in$the$evening□
Don't$shop$before$eating□
§
○
Social$Pressure
Person$of$your$choice$(accountable$partner)$will$receive$an$email$
containing$all$possible$questionable$sites$you$visit$(e.g.$porn$sites)
§
○
Increase$Motivation,$Ability,$Opportunity
M$=$visualize$achievement
§
A$=$increase$knowledge$-consumer$behavior,$financial$
knowledge,$health$knowledge
§
O$=$in$terms$of$time$pressure$(rule:$10$mins$to$order)
§
○
2.
Self-Control
Thursday,$1$February$2018
10:42$AM
Document Summary
Self control - how much long-term gains are valued over short-term pains. High = accept immediate pain for later gain. Low = seek immediate gain, but suffer later pain. Required when strong emotions are present (positive/negative) = e. g. desire and anger. Less likely to go to pieces under stress. Still able to delay gratification in pursuit of goals. Specific goals = lose 10 kg, learn french, etc. Conflict = less self-control as it causes negative feelings (immediate gains are valued more) E. g. record daily meals, track daily exercise, keep a log of study hours, note daily expenses, mirrors in the gym, etc. Be careful when you are tired (physically/mentally) = self-control is like a muscle. Don"t go grocery shopping when hungry = will act as a strong desire. Block that urge = put barriers to preempt strong desires. Think about your goals = clarify & resolve. People are conditioned to accepting the value as normal.
