The Behavioral Economics in Marketingās Podcast Avoiding Office Herd Behavior with Behavioral Economics
Aug 19, 2021
Leaders tackle herd behavior at work and why group pressure skews decisions. Practical fixes are discussed like removing rushed deadlines, training communication and dissent, and structuring hiring to surface true motives. The conversation highlights building diverse, inclusive teams and using incentives and longer brainstorms to reduce automatic copying.
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Herd Behavior Shapes Everyday Choices
- Herd behavior causes people to follow group cues in everyday decisions like shopping, dining, and socializing.
- Sandra Thomas-Caminol shows that FOMO and visible crowds drive many common choices.
Crowds Drive Choices Like Restaurants And Sales
- Black Friday shoppers queue, camp out, and stampede into stores because of perceived scarcity and others' actions.
- People often pick the busy restaurant over the empty one assuming the crowd signals higher quality.
Herd Effects Can Help Or Hinder Teams
- In teams, herd behavior can boost low performers by surrounding them with high performers but also causes complacency and stagnation.
- Sandra Thomas-Caminol highlights this dual effect for leaders to consider.