Lecture: Emotion & Consumer behavior: Narrator: Listen to part of a lecture in a economics class. Professor: So, continuing our discussion about emotions and consumer behavior, I'd like to start talking about the interview I asked you to listen to for homework. No problem accessing it on the Internet, and I hope. Good. First of all, some background. Now, as I mentioned before, traditionally economics system based on this model of human nature. Uh, this model that assumes that people are rational, but they make decisions based on what's in their self-interest, that before buying the item, still calculate what the cost to them. And this is the model we need to help us understand and do the most predictions about consumer behavior. But as no humans are always rational and so we're working on translating feeling, like willpower, or uh, greed or envy into mathematical terms, which can then be used to build better models and a current without incorporating feelings. But it's really planned what we were able to do with our models. And, so one of the thing we're looking at is the motion and this is kind of emotional economics, because, well, that's the situation largely due to be a dinner. See, in the mid ... uh ... the mid-20th century, the noted psychologist, B. F. Skinner, stated that emotion didn't need to be student at all, but it did actually has no influence on behavior. And Skinner was very influential, also, that, well, wasn't until recently that psychologists, um, social scientists, in general actually, went back to looking at that notion. Of course now we have new technologies that allow us to study human emotion and the feeling thing scientifically. In controlled research faculty, so we can examine how emotion influences this decision-making and judgement and how to quantify this influence. Okay, so the interview, and I have to noticed that only one of the interviews is actually trained in behavior economics, but I think that underscores an interdisciplinary look of what we were doing here. So first, what do you need to find two different types for the notion, right? Who can tell me about it? Robert? Robert: Oh, there are integral emotions ... that ... okay ... like emotions or feelings you might have about a choice. So if you're in a restaurant trying to decide whether to order a fruit or ... uh ... a salad, well, you might be thinking about how you'll feel if you order one or the other. Professor: Good. And in economics, this may be the emotion details about putting money into an investment, like just thinking about how sad you will be no money or how worried you are in this model. And secondary that these are type of emotion that easy to incorporate into economic models. Robert: But on the other side, the, um, incidentally motion? Professor: No. That's a different story. Incidental motion, as the name suggests, our most things you might happen to be feeling at the time we are making a financial decision but don't stand from the choice itself. But after that, they do influence the choices you make, some choices trying to surprise me. Female Student: Such as ... uh ... Professor: Well, what did you learn from experience that the interviewees talked about? Yes, a little bit? Female Student: Well that anger influences our decision, but how it influences decision what I expected. Professor: Gone. Female Student: Well, I thought if someone was angry they'd be more negative, more ... I don't know, pessimistic? Like if they were deciding whether or not to put money into a risky investment, they might decide against it if they were anger. And what these researchers are doing? Just the opposite, anger make you optimistic. Uh. If you're angry you feel like you have a sense of control ... of ... certainty and you don't perceive the risk as well as if you weren't angry. Professor: Okey, good, right out. Robert: Me, sadness may spend more money. Professor: Okey. Robert: Yeah. Uh ... there was this experiment where test subjects watched the full video that was either sad or neutral. After that, they were given an attack, um, buying something. And the people who watched the sad video tended to buy things at higher prices. But afterward, when asked if the video the team had influenced their actions, people were actually offended, you know, by the implication that their decisions could be so easily influenced. Professor: That's the type of thing we want to be able to include in our models of human behavior.