This Endowed Progress Effect Applied - Deepstash

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Framing Reward is as Important as Reward Itself

This Endowed Progress Effect Applied

This Endowed Progress Effect is successfully deployed in games like Candy Crush Saga, and websites like Paypal and LinkedIn, which show a prominent progress indicator, with easy to find ways for completing the next milestone. These apps and games use social pressure tactics and freebies to lure the customers into providing more information or buying a premium service.

Once the customer sees that time and energy has been spent, and progress made, they are less likely to drop out.

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The Goal Gradient hypothesis states that we push harder or are motivated to exert more by the fact that the goal is almost within reach.

The knowledge that the desired outc...

The "Buy Ten Get One Free" Line

Marketers use this to nudge us towards buying a certain product or service, providing us with a goal that is almost within our grasp.

Example: When enrolled in a buy ten get one free coffee program, the person who has just one coffee to complete ten, is motivated to buy it as the free coffee is now imminent.

Offering Free Bonus Points

Studies show that if a person is offered a bonus reward or push, he or she is more likely to complete the goal as he has been provided with a further incentive and help to reach a stage where his reward is within his sights.

Two of the biggest innovations
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Two of the biggest innovations of modern times are cars and airplanes. At first, every new invention looks like a toy. It takes decades for people to realise the potential of it.

Innovation is driven by incentives

There are three types of incentives:

  1. "If I don't figure this out, I might get fired." It will get you moving.
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  3. "If we don't figure this out now, our very existence is threatened." Militaries deal with this, and it will fuel the most incredible problem-solving and innovation in a short time.

During World War II, there was a burst of scientific progress that took place. The government was in effect saying that if a discovery had any possible war value, then it had to be developed and put in use, regardless of the expense.

The conditions for big innovations to happen

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In 1932, the stock market fell by 89%. It was an economic disaster where almost a quarter of Americans were out of work. However, the 1930s was also the most productive and technologically progressive decade in history. Economist Alex Field writes that in 1941, the U.S. economy produced almost 40 percent more output than it had in 1929, with little increase in labor hours or private-sector capital input.