This is a mind-blowing concept that I first read about in the book, ‘The Wisest One in the Room’, by Thomas Gilovich and Lee Ross. The book contains some of psychology’s latest studies and discoveries and preaches how understanding human behavior can make you the wisest one in the room. Feel free to purchase a copy, below. This will be an investment you will not regret. Also, we’ll ship it to you for free.
A study examined organ donation rates in European countries, with different default organ donation policies.
Like the United States, most EU countries (such as Denmark, Netherlands and the UK) have opt-in policies. To be a potential organ donor, a person has to make a move himself and give consent. Without that signature, his organs cannot be used for donations.
In other EU countries, (such as Sweden, Poland and Portugal) there in an opt-out policy instead. Every citizen is a potential donor, unless they chose to opt out.
As you can already guess, organ donation rates in the opt-out countries were a lot higher than the opt-in countries.
Most out-out countries had over 90% organ donation rates, while the highest opt-in country had a mere 28%.
How people’s behavior is affected by the way in which an opportunity is presented to them:
Organ donation is a noble thing to do. That itself is enough motivation to do it, and most considerate citizens wouldn’t mind.
Why, then, is there such a huge difference?
The answer is simple. By having an opt-out policy, people have to take an extra effort to opt out of a noble deed. Why would anybody do that...
On the other hand, an opt-in policy requires you to take necessary producers to sign up, which requires even more motivation. Most people don’t have the time and willingness to go through this process.
Thus, it can be concluded that human behavior is greatly impacted by the way in which an opportunity is presented to them.
Knowing this psychology hack can benefit you in your business as well as your personal life.
For example, look at these two call scripts:
“Hello Sir. I have the stock of company x sitting at 5$ a share. Our analysts indicate that it could rise up to 20$ a share, within 2 months. Would you like to purchase it?”
“Hello Sir. I am looking at the stock prices of company x in front of me now. Per out analysts’ indication, I could put you in at 5$ a share and take you out at 20$ a share, within 2 months. This is an opportunity I think you shouldn’t let go of. I think I should count you in.”
Which broker would you buy stock from?
In the first case, the offer was present in such a way that it was equally easy for the person being called to say a ‘no’, as opposed to a ‘yes’. In the second case, the caller indirectly opted the receiver in and then reasoned out why it is in his best interest to not opt out. I would’ve agreed to the second call. Good broker or not, he definitely might’ve been an exceptional salesperson.
I have no background in psychology, yet I find myself using principles like these on a daily basis, and guess what? It works.
For more psychology hacks like these, make sure to get yourself a copy of ‘The Wisest One in the Room’, by Thomas Gilovich and Lee Ross. Purchase a copy below, and we’ll ship it to you for free.
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