{"id":23000,"date":"2019-09-13T11:50:01","date_gmt":"2019-09-13T15:50:01","guid":{"rendered":"https:\/\/beyondphilosophy.com\/?p=23000"},"modified":"2019-10-21T09:58:32","modified_gmt":"2019-10-21T13:58:32","slug":"stereotypes-the-hard-wired-way-our-brains-make-decisions","status":"publish","type":"post","link":"https:\/\/beyondphilosophy.com\/stereotypes-the-hard-wired-way-our-brains-make-decisions\/","title":{"rendered":"Stereotypes: The Hard-Wired Way Our Brains Make Decisions"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">I&#8217;ve got a hypothetical question for you. On a scale of one to ten, how likely is it I am a male model?\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Now before you destroy my self-esteem with your answer, I have a follow-up question. How did you come to that determination?\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The answer to that question is the subject of this post and <\/span><a href=\"https:\/\/beyondphilosophy.com\/how-and-why-we-stereotype-people\/\"><span style=\"font-weight: 400;\">a recent podcast<\/span><\/a><span style=\"font-weight: 400;\">, and it involves the Representative Heuristic. This psychological principle could have a significant influence on <a href=\"https:\/\/beyondphilosophy.com\/customer-experience\/\">how customers behave in your Customer Experience<\/a>.\u00a0<\/span><\/p>\n<p><!--more--><\/p>\n<p><span style=\"font-weight: 400;\">So, how did you arrive at your number? Most of you probably compared me to male models you have seen in the past and determined whether I fit the profile for looks and physique. Then, based on that comparison, you assigned me a number. (It is not necessary to share your number with me, by the way\u2026in fact, I would prefer if you didn\u2019t.)<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This process is what decision scientists call Representativeness. Representativeness means that you have an idea of what typifies a group of people or an entity that share a characteristic. In other words, it is a stereotype. These stereotypes serve to help us categorize broad instances into a more manageable form.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Representative Heuristic uses these stereotypes to create patterns that help us make a quicker decision in certain situations. A heuristic is a decision shortcut. I also compare it to a \u201crule of thumb.\u201d Heuristics are not 100 percent accurate, but they work most of the time, and help make complex cognitive decisions easier and faster.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><b>Your Heuristics vs. Our Heuristics<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">In decision sciences, there are individual level heuristics and universal heuristics. An example of an individual heuristic might be how you choose where you eat lunch, e.g., a place that I can walk to from my office. Another example is how you buy toothpaste, e.g., \u201cfind the one in the red package.\u201d These individual heuristics are specific to you and help you simplify your choices.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Universal heuristics are broader than individual ones. These heuristics are ones we all use because of the way our brains are wired. In other words, everyone uses them all the time.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Making decisions in these ways is simpler for us, given the kind of the strengths and weaknesses of the human mind.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">One of these universal heuristics is the Representativeness Heuristic, which is how we decide the likelihood that something is going to happen or that somebody belongs to some class of people.\u00a0 One way I think of this mental shortcut is if it looks like a duck and quacks like a duck and it walks like a duck, it&#8217;s probably a duck.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, decision scientists aren\u2019t interested in when the animal is a duck. They study when our mental shortcut goes wrong. So, if the animal isn\u2019t a duck but a goose, let\u2019s say. Decision-scientists want to know, where did it go wrong and what does that tell us about decision-making.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Expectations play into it, in how you form the category or group against which you&#8217;re going to compare. For example, you&#8217;ve got expectations about how a male model looks. Therefore, when you&#8217;re pulling mental samples to form that category, it was defined by your expectations.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Somebody from a different culture or with a different set of experiences might have a completely different set of expectations.\u00a0 So, they would form a different category. Then, that would be a different Representativeness.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><b>The Linda Problem<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Economists Amos Tversky and Nobel-prize winner Daniel Kahneman published an example of this heuristic in the 80&#8217;s. Over the years, it has become known as \u201c<\/span><a href=\"https:\/\/www.psychologytoday.com\/us\/blog\/the-superhuman-mind\/201611\/linda-the-bank-teller-case-revisited\" rel=\"nofollow noopener\" target=\"_blank\"><span style=\"font-weight: 400;\">The Linda Problem<\/span><\/a><span style=\"font-weight: 400;\">.\u201d In the study, they described \u201cLinda\u201d to the participants:\u00a0<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">Linda is 31-years-old, single, outspoken, and very bright. She majored in philosophy as a student. She was deeply concerned with issues of discrimination and social justice and also participated in anti-nuclear demonstrations.\u00a0<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">Then, the researchers had a series of ten or twelve descriptions of Linda, including organizations that she belongs to and jobs that she does.\u00a0 They asked people to rate how probable are each of these descriptions.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, they are only interested in two of the descriptions:<\/span><\/p>\n<ol>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">\u00a0Linda is a bank teller.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Linda is a bank teller that is active in the feminist movement.\u00a0<\/span><\/li>\n<\/ol>\n<p><span style=\"font-weight: 400;\">So, I ask you readers, which of those two seems more probable based on the description of Linda?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">I said the second one. However, it\u2019s wrong.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It can\u2019t be more probable for her to be a feminist bank teller than it is for her to be a bank teller because of math.\u00a0 The set of feminist bank tellers is smaller than the set of all bank tellers.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Representative Heuristic is at work here because even though it is mathematically impossible that she belongs to the second group, it still <\/span><i><span style=\"font-weight: 400;\">feels<\/span><\/i><span style=\"font-weight: 400;\"> right. Why? It feels right because Linda is so <\/span><i><span style=\"font-weight: 400;\">representative <\/span><\/i><span style=\"font-weight: 400;\">of what most of us picture as a \u201cfeminist.\u201d She doesn&#8217;t seem like she should be a bank teller. The only way we can make that work is if she&#8217;s a feminist bank teller.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Representativeness applies to organizations also. Consider my opinion of internet companies, which, for those of you who don\u2019t know, is low. My opinion affects my expectations. If I were setting up service with an Internet company, if they were inattentive at the call center or unreliable with their service or incompetent at installation, I would think, \u201cTypical.\u201d\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, let\u2019s say I tried satellite service instead. Here is where Representativeness comes into play. Technically, setting up satellite service would be a new experience. However, there would be parts of the interaction that would be the same, e.g., calling in to set it up, waiting for installation, trying to use the service as advertised, and so on. My brain would think, \u201cHey! This experience is like the cable provider,\u201d and then I would bring in all those associations because they were representative of that category of a service provider.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Let\u2019s take a broader view of this concept. Consider your experience with a sales-driven organization. You know when you are in one because the customer-facing people are aggressive and usually hard to shake.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As a rule of thumb (see what I did there?), I don\u2019t give my information to sales-driven organizations easily. I tend to hold back information rather than lay it all out until I determine that I want to move to the next step. My behavior is governed by what I think a sales-driven organization is going to be like based on my expectations.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">People use these probability judgments to make all kinds of decisions, and they go right most of the time. However, let me give you a specific example of how these judgments go wrong, and it has to do with neglecting base rates. When you are discussing probabilities, base rates are the likelihood that something will be accurate based on featural evidence.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the Linda problem, the group of bank tellers is larger than the number of feminist bank tellers. For demonstration, let\u2019s say 99 percent of bank tellers are not feminists, and 1 percent are. That means the base rate of feminist bank tellers is 1 percent.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">We neglect base rates in the extremes and that\u2019s where Representativeness goes wrong for us. For example, we overlooked the base rate of feminist bank tellers. We forgot that the number of bank tellers was larger than the number of feminist bank tellers.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Another example could be a high school basketball player that you see who is fantastic, and the player represents your idea of professional players. You think, \u201cthat kid is going pro, for sure.\u201d However, per the NCAA, the base rate for high school players playing professional basketball is <\/span><a href=\"http:\/\/www.ncaa.org\/about\/resources\/research\/estimated-probability-competing-professional-athletics\" rel=\"nofollow noopener\" target=\"_blank\"><span style=\"font-weight: 400;\">1.2 percent for men and .9 percent for women<\/span><\/a><span style=\"font-weight: 400;\">. So, even though the kid is excellent and might represent what you expect for a professional player, they probably won\u2019t go pro. Again, because of math.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you put this concept into a business context, it can mean that as a customer, you make the same wrong assumptions about an organization.\u00a0 For example, if you engage with a company that is representative of some class of companies that you don&#8217;t like, you might overestimate the likelihood of a service failure. The opposite could be true also. The danger is that you tar everyone with the same brush and make the wrong assumption.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h2><b>How Can You Use This Concept?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">There&#8217;s a reason that the scientists study the Representativeness Heuristic: it is a reliable driver of behavior. The Representative Heuristic is hard-wired into our brains, making it difficult to overcome.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, by maintaining rational-thinking about base rates, you can overcome it. We need to have an evidence-based probability for success or failure. Otherwise, we don\u2019t have a sound foundation for making an estimate. We could be way off because we aren\u2019t looking at the situation clearly enough.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Your customers also make estimates that are way off. We have to understand where they are coming from and exercise patience with them in their decision-making. For example, if you are suffering from an overestimated sense of probable failure based on the category of business you represent in customer\u2019s minds, it will take a long time to change customers\u2019 minds.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Your goal, then, should be to consistently play against type and prove to customers that you are not what they thought you were. Your <a href=\"https:\/\/beyondphilosophy.com\/customer-experience\/\">Customer Experience<\/a> should surprise them and make them feel differently than they expected.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">To address this implication in your Customer Experience, you should:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Determine what you experience makes you representative of in their mind.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Decide what category your experience communicates and how that will affect customer behavior<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Design your behavior in the Customer Experience to address these expectations to an improved outcome.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">In our global Customer Experience consultancy, we take the Representative Heuristic into account when we do the <\/span><a href=\"https:\/\/beyondphilosophy.com\/cx-services\/emotional-signature\/\"><span style=\"font-weight: 400;\">Emotional Signature<\/span><span style=\"font-weight: 400;\">\u00ae<\/span><span style=\"font-weight: 400;\">.<\/span><\/a><span style=\"font-weight: 400;\"> The Emotional Signature is a research exercise we do that determines the level of <a href=\"https:\/\/beyondphilosophy.com\/customer-experience\/emotional-experience\/\">emotional engagement<\/a> that your present experience with your customers. Within the process, we determine the segments and customer types you have presently and what their expectations might be as a result.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You need to understand what is in your customers\u2019 minds when they make decisions. Considering these hard-wired psychological drivers of behavior is an excellent place to start.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you provide an experience that positively influences customer behavior, then, by all means, keep it up. However, if you are doing things in your interactions that categorize you in an unfavorable light (I&#8217;m looking at you, internet service providers), you should recognize it. Then, you should change that moving forward so that your customers&#8217; rule of thumb is to choose your organization first.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b><i>To hear more about How and Why We Stereotype People and Things in more detail, listen to the <\/i><\/b><a href=\"https:\/\/beyondphilosophy.com\/how-and-why-we-stereotype-people\/\"><b><i>complete podcast here.\u00a0<\/i><\/b><\/a><\/p>\n<p>&nbsp;<\/p>\n<p><i><span style=\"font-weight: 400;\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-20286 alignleft\" src=\"https:\/\/beyondphilosophy.com\/wp-content\/uploads\/2018\/07\/emotional-sigV1-300x235-300x235.png\" alt=\"emotional signature\" width=\"157\" height=\"123\" srcset=\"https:\/\/beyondphilosophy.com\/wp-content\/uploads\/2018\/07\/emotional-sigV1-300x235.png 300w, https:\/\/beyondphilosophy.com\/wp-content\/uploads\/2018\/07\/emotional-sigV1-300x235-200x157.png 200w\" sizes=\"auto, (max-width: 157px) 100vw, 157px\" \/>What customers say they want and what they really want are often different things. It is vital to know what drives value for your organization. Our Emotional Signature research can tell you where you are compared to other organizations and what to focus on to drive value for your customers. To learn more, <\/span><\/i><a href=\"https:\/\/beyondphilosophy.com\/cx-services\/emotional-signature\/\"><i><span style=\"font-weight: 400;\">please click here<\/span><\/i><\/a><i><span style=\"font-weight: 400;\">.\u00a0<\/span><\/i><\/p>\n<p>&nbsp;<\/p>\n<p><i><span style=\"font-weight: 400;\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-20523 alignleft\" src=\"https:\/\/beyondphilosophy.com\/wp-content\/uploads\/2018\/08\/Podcast-logo-Intuitive-Customer-300x300.png\" alt=\"Podcast for Ignoring Customers\u2019 Risk Aversion is Risky Business - BLOG Featured Image - Colin Shaw - Intuitive Customer\" width=\"136\" height=\"136\" srcset=\"https:\/\/beyondphilosophy.com\/wp-content\/uploads\/2018\/08\/Podcast-logo-Intuitive-Customer-300x300.png 300w, https:\/\/beyondphilosophy.com\/wp-content\/uploads\/2018\/08\/Podcast-logo-Intuitive-Customer-150x150.png 150w, https:\/\/beyondphilosophy.com\/wp-content\/uploads\/2018\/08\/Podcast-logo-Intuitive-Customer-1024x1024.png 1024w, https:\/\/beyondphilosophy.com\/wp-content\/uploads\/2018\/08\/Podcast-logo-Intuitive-Customer-200x200.png 200w, https:\/\/beyondphilosophy.com\/wp-content\/uploads\/2018\/08\/Podcast-logo-Intuitive-Customer-600x600.png 600w\" sizes=\"auto, (max-width: 136px) 100vw, 136px\" \/>Hear the rest of the conversation <\/span><\/i><i><span style=\"font-weight: 400;\">on <\/span><\/i><a href=\"https:\/\/beyondphilosophy.com\/how-and-why-we-stereotype-people\/\"><b><i>How and Why We Stereotype People and Things <\/i><\/b><\/a><i><span style=\"font-weight: 400;\">on The <\/span><\/i><a href=\"https:\/\/beyondphilosophy.com\/podcast\/\"><i><span style=\"font-weight: 400;\">Intuitive Customer Podcast<\/span><\/i><\/a><i><span style=\"font-weight: 400;\">. These informative podcasts are designed to expand on the psychological ideas behind understanding customer behavior. To listen in<\/span><\/i><a href=\"https:\/\/beyondphilosophy.com\/understanding-customers-mental-budgets\/\"><i><span style=\"font-weight: 400;\">,<\/span><\/i><\/a><i><span style=\"font-weight: 400;\">\u00a0<\/span><\/i><a href=\"https:\/\/beyondphilosophy.com\/how-and-why-we-stereotype-people\/\"><i><span style=\"font-weight: 400;\">please click here.<\/span><\/i><\/a><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p><i><span style=\"font-weight: 400;\">If you enjoyed this post, you might be interested in the following blogs and podcasts:<\/span><\/i><\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"https:\/\/beyondphilosophy.com\/how-do-customers-decide-if-their-experience-is-good-or-bad\/\"><i><span style=\"font-weight: 400;\">How Do Customers Decide If Their Experience is Good or Bad? [Podcast]<\/span><\/i><\/a><\/p>\n<p><a href=\"https:\/\/beyondphilosophy.com\/make-decisions-prospect-theory\/\"><i><span style=\"font-weight: 400;\">How We Make Decisions\u2014Prospect Theory<\/span><\/i><\/a><\/p>\n<p><a href=\"https:\/\/beyondphilosophy.com\/customers-make-strange-decisions\/\"><i><span style=\"font-weight: 400;\">Why Customers Make Strange Decisions<\/span><\/i><\/a><\/p>\n<p>&nbsp;<\/p>\n<p><a href=\"http:\/\/beyondphilosophy.com\/our-team\/colin-shaw\/?utm_source=linkedin&amp;utm_medium=pulse&amp;utm_campaign=n2n\"><i><span style=\"font-weight: 400;\">Colin Shaw<\/span><\/i><\/a><i><span style=\"font-weight: 400;\">\u00a0is the founder and CEO of<\/span><\/i><a href=\"http:\/\/bit.ly\/189lvWr\" rel=\"nofollow noopener\" target=\"_blank\"><i><span style=\"font-weight: 400;\">\u00a0Beyond Philosophy<\/span><\/i><\/a><i><span style=\"font-weight: 400;\">, one of the world\u2019s leading Customer experience consultancy &amp; training organizations. Colin is an international author of<\/span><\/i><a href=\"http:\/\/bit.ly\/IrQ8uB\" rel=\"nofollow noopener\" target=\"_blank\"><i><span style=\"font-weight: 400;\">\u00a0six bestselling books<\/span><\/i><\/a><i><span style=\"font-weight: 400;\">\u00a0and an engaging keynote speaker.<\/span><\/i><\/p>\n<p><i><span style=\"font-weight: 400;\">Follow Colin Shaw on Twitter\u00a0<\/span><\/i><a href=\"http:\/\/bit.ly\/1hxF3H7\" rel=\"nofollow noopener\" target=\"_blank\"><i><span style=\"font-weight: 400;\">@ColinShaw_CX<\/span><\/i><\/a><\/p>\n<p>&nbsp;<\/p>\n<p><b>Sources:<\/b><\/p>\n<p><span style=\"font-weight: 400;\">\u201cEstimated probability of competing in professional athletics.\u201d Ncaa.org. Web. 29 August 2019. &lt;<\/span> <a href=\"http:\/\/www.ncaa.org\/about\/resources\/research\/estimated-probability-competing-professional-athletics\" rel=\"nofollow noopener\" target=\"_blank\"><span style=\"font-weight: 400;\">http:\/\/www.ncaa.org\/about\/resources\/research\/estimated-probability-competing-professional-athletics<\/span><\/a><span style=\"font-weight: 400;\">&gt;. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>I&#8217;ve got a hypothetical question for you. On a scale of one to ten, how likely is it I am a male model?\u00a0 Now before you destroy my self-esteem with your answer, I have a follow-up question. How did you come to that determination?\u00a0 The answer to that question is the subject of this post [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":23001,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[97],"tags":[],"class_list":["post-23000","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blogs"],"_links":{"self":[{"href":"https:\/\/beyondphilosophy.com\/wp-json\/wp\/v2\/posts\/23000","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/beyondphilosophy.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/beyondphilosophy.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/beyondphilosophy.com\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/beyondphilosophy.com\/wp-json\/wp\/v2\/comments?post=23000"}],"version-history":[{"count":0,"href":"https:\/\/beyondphilosophy.com\/wp-json\/wp\/v2\/posts\/23000\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/beyondphilosophy.com\/wp-json\/wp\/v2\/media\/23001"}],"wp:attachment":[{"href":"https:\/\/beyondphilosophy.com\/wp-json\/wp\/v2\/media?parent=23000"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/beyondphilosophy.com\/wp-json\/wp\/v2\/categories?post=23000"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/beyondphilosophy.com\/wp-json\/wp\/v2\/tags?post=23000"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}