How Our Brains Process Price Information

On-Off-Switch-For-Human-BrainWe have a complex psychological relationship with pricing. A new brain scanning study out of Harvard and Stanford starts to pick apart the dynamics of that relationship.

Uma R. Karmarkar, Baba Shiv, and Brian Knutson wanted to see how we evaluate a potential purchase when the price is the first piece of information we get as opposed to the last piece of information. They used both fMRI scanning and behavioral tracking to see how the study participants responded. Participants were given $40 dollars to spend and then were presented with a number of sample offers. In all cases, the price represented an attractive bargain on the product featured. But one group was given the price first, and the second group was given the price last.

There was another critical difference in the evaluation process as well. In the first phase of the study, participants were shown products that they would like to buy, and in the second phase, they were shown products that they would have to buy. The difference between the two was how they activated the reward center of our brain – the nucleus accumbens. I’ve been talking for years about the importance of understanding the balance of risk and reward in our purchase decisions. This study provides a little more understanding about how our brain processes those two factors.

In the first phase, participants were shown a variety of products that they would consider rewarding. These would fall into the first quadrant of the risk/reward matrix I introduced in my column from 5 years ago. The researchers were paying particular attention to two different parts of the brain – the nucleus accumbens and the medial prefrontal cortex. For a layman’s analogy, think of you and a five year old walking down the toy aisle in a department store. The nucleus accumbens is the five year old who starts chanting, “I want it. I want it. I want it.” The medial prefrontal cortex is the adult who decides if they’re actually going to buy it. In the study, the researchers found that the sequence in which these two parts of the brain “lit up” depended on whether or not you saw the price first. If you saw the product first, the nucleus accumbens started its chant – “I want it.” If you saw the price first, the prefrontal medial cortex kicked into action and started evaluating whether the offer represented a good bargain. In the case of the reward products, although the sequence varied, the actually purchase process didn’t. In most cases, participants still ended up making the purchase, whether price was presented first or last.

But things changed when the researchers tried a variety of products that fell into the second quadrant of the risk reward matrix – low risk and low reward. These are the everyday items we have to buy. In the study, they included things like a water filtration pitcher, a pack of AA batteries, a USB drive, and a flashlight. There was nothing here that was likely to get the nucleus accumbens starting to chant.

Now, it should be noted that this follow-up study did not include the fMRI scanning, but by tracking purchasing behaviors we can make some pretty educated guesses as to what’s happening in the respective brains of our participants. Here, presenting prices first resulted in a significant increase in actual purchases over instances when price was presented last. If price comes first, we can imagine that the prefrontal cortex is indicating that it’s a good bargain on a needed product. But if a relatively boring product is presented first for evaluation to the nucleus accumbens, there’s little to excite the reward center.

An important caveat to this part of the study comes with knowing that the prices presented represented significant savings on the products. After the simulated purchases, participants were asked to indicate a price they would be willing to pay for the product. When the price was the lead, the named prices tended to be a little lower, indicating that if you are going to lead with price, especially for quadrant two products, you’d better make sure you’re offering a true bargain.

If anything, this study provides further proof of the value of knowing a prospect’s mental landscape. What are the risk and reward factors that will be motivating them? Will the media prefrontal cortex or the nucleus accumbens be calling the shots? What priming effects might an early introduction of price introduce into the process?

When I wrote about the risk/reward matrix five years ago, one commenter said “a simple low-high risk/low-high reward graph is not very useful for driving just in time and location based offers, discounts, etc.” I respectfully disagree. While more sophisticated models are certainly possible, I think even a simple 2X2 matrix that helps map out the decision factors that are in play with purchases would be a significant step forward. And this isn’t about driving real time variations on offers. It’s about understanding the fundamentals of the buyer’s decision process. There’s nothing wrong with simplicity, especially if it drives greater usage.

An Eulogy for “Kathy” – The First Persona

My column last week on the death of the persona seemed to find a generally agreeable audience. But prior to tossing our cardboard cutouts of “Sally the Soccer Mom” in the trash bin, let’s just take a few minutes to remind ourselves why personas were created in the first place.

Alan Cooper – the father of usability personas – had no particular methodology in mind when he created “Kathy,” his first persona. Kathy was based on a real person that Cooper had talked to during his research for a new project management program. Cooper found himself with a few hours on his hands every day when his early 80’s computer chugged away, compiling the latest version of his program. He would use the time to walk around a golf course close to his office and run through the design in his head. One day, he engaged himself in an imaginary dialogue with “Kathy,” a potential customer who was requesting features based on her needs. Soon, he was deep in his internal discussion with Kathy. His first persona was a way to get away from the computer and cubicle and get into the skin of a customer.

There are a few points here that important to note. “Kathy” was based on input from a real person. The creation of “Kathy” had no particular goal, other than to give Cooper a way to imagine how a customer might use his program. It was a way to make the abstract real, and to imagine that reality through the eyes of another person. At the end we realize that the biggest goal of a persona is just that – to imagine the world through someone else’s eyes.

As we transition from personas to data modeling, it’s essential to keep that aspect alive. We have to learn how to live in someone else’s skin. We have to somehow take on the context of their world and be aware of their beliefs, biases and emotions. Until we do this, the holy grail of the “Market of One” is just more marketing hyperbole.

I think the persona started its long decline towards death when it transitioned from a usability tool to a marketing one. Personas were never intended to be a slide deck or a segmentation tool. They were just supposed to be a little mental trick to allow designers to become more empathetic – to slip out of their own reality and into that of a customer. But when marketers got their hands on personas, they do what marketers tend to do. They added the gloss and gutted the authenticity. At that moment, personas started to die.

So, for all the reasons I stated last week, I think personas should be allowed to slip away into oblivion. But if we do so, we have to find a way to understand the reality of our customers on a one to one basis. We have to find a better way to accomplish what personas were originally intended to do. We have to be more empathetic.

Because humans are humans, and not spreadsheets, I’m not sure we can get all the way there with data alone. Data analysis forces us to put on another set of lenses – ones that analyze – not empathize. Those lenses help us to see the “what” but not the “why.” It’s the view of the world that Alan Cooper would have had if he never left his cubicle to walk around the Old Del Monte golf course, waving his arms and carrying on his internal dialogue with “Kathy.” The way to empathize is to make connections with our customers – in the real world – where they live and play.  It’s using qualitative methods like ethnographic research to gain insights that can then be verified with data. Personas may be dead, but qualitative research is more important than ever.

The Mother of All Disruption

Once again fellow Online Spin author Tom Goodwin has piqued my interest. He starts to unwrap a tremendously thorny problem in his column of last Thursday – Time to Think about Regulation for Disruption. Today, I’d like to take this question up one level – do we have to rethink government entirely?

Government is almost entirely a reactionary business. Even far sighted, historic documents such as the Constitution of the United States and the Magna Carta were reactions to the untenable circumstances that preceded them. And these are the exceptions. The vast majority of governing involves a highly bureaucratic and excruciatingly slow process that attempts to respond to emerging breaches in the unspoken code of fairness that our society tries to live by. Realistically, from the time the need for a new law is recognized to the time a bill is passed, months or even years can pass.

Months or years were, practically speaking, adequate in the world we once knew. But today, that is no longer the case. In that time, complex ecosystems can establish around the breach in question, and, as Tom points out, entire industries may have been decimated in the process. This is the reality of disruption.

In a world that seeks order and governance, this is a bad thing. But, now that we have unleashed the technological Kraken, is that a world we can reasonably expect? Slowly but surely we are dismantling every aspect of our hierarchical society and replacing it with a horizontal network. Hierarchies can’t work horizontally. Something has to give.

Disruptions are a characteristic of networked structures. In order for networks to work, each component of that network has to be given the freedom to act. If the action of an individual resonates with other parts of the network, the actions are picked up and amplified. Each individual act has the potential to become a disruption – with corresponding consequences. Everything becomes accelerated in a network.

Government is built on the ideological foundation of a hierarchy. The word “government” means “to steer.” The assumption is that our society is capable of being steered. This, in turn, assumes that our society all wants to go in the same direction. But if we enforce these restrictions on a network, networks cease to work. Yes, we quell the negative disruptions, but we also eliminate the positive ones.

The United States of America is one of the least restrictive societies on the planet. The founding fathers drafted their articles to enshrine that freedom. You (as a Canadian, I have to say “you”) have managed to balance the practical necessities of government with the lack of restrictions typical of a market economy. Markets naturally emerge from networks. Because the U.S. treasures freedom and innovation, it was inevitable that it would emerge as the testing ground for the impacts of technological advances. You are the canary in the coalmine of massive disruption.

Tom urges lawmakers to become more proactive. But historically speaking, that’s just not the way government works. It’s like riding a cow in the Kentucky Derby and wondering why you can’t keep up. I just don’t think that our current hierarchical system of government is up to the job. It’s a great system, with a ton of democratic checks and balances, but it was built for a different era – one built along vertical lines.

The final issue is one of enforcement. Even if laws are passed to deal with emerging disruptions, it’s becoming almost impossible to enforce them. If lawmakers are scrambling to keep up with society, law enforcers have capitulated entirely. We just can’t afford to enforce the laws we already have on the books.

So, if this is the problem, what is the answer? I think, perhaps, it lies in the very same properties of networks. Government and laws became necessary to avoid abuses of power. Power comes from hierarchies. As societies level out the old dictates of fairness become increasingly relevant. We all have universal concepts of fairness. Abuses of what we consider to be fair are generally dealt with quickly and effectively at the network level. Networks tend to police themselves, as long as there is a common understanding of what is acceptable and what is not. In short, we have to think of regulation in terms of market and network dynamics, not hierarchical governance.

I admit this is tough to wrap your head around. In a world of disruptions, this is the Mother of all Disruption. But symptomatically speaking, it appears that our historic notion of government is ailing. As frightening as it may be to contemplate, we should start thinking about what may replace it.

Some Second Thoughts on Mindless Media

When I read Tom Goodwin’s Online Spin last week, I immediately jumped on his bandwagon. How could I not? He played the evolutionary psychology card and then trumped that by applying it to the consumption of media. This was right up my ideological alley.

addict_f1pjr6Here’s a quick recap: Humans evolved to crave high calorie foods because these were historically scarce. In the last century, however, processed food manufacturing has ensured that high calorie foods are abundantly available. The result? We got fat. Really fat. Tom worries that the same thing is happening to our consumption of media. As traditional publishing channels break down, will we become a society of information snackers?

“We’re rewarding pieces that are most-clickable or most easily digested, and our news diet shifts from good-for-us to snackable.”

Goodwin also mourns the death of serendipitous discovery – which was traditionally brought to us by our loyalty to a channel and the editorial control exercised by that channel. If we were loyal to the New York Times, then we were introduced to content they thought we should see. But in the age of “filter bubbles” our content becomes increasingly homogenized based on algorithms, which are drawing an ever-narrowing circle bounded by our explicit requests and our implicit behavior patterns. We become further insulated from quality by mindless social media sharing – which tends to favor content pandering to the lowest common denominator.

But the more I thought about it, the more I wondered if this wasn’t a little paradoxical? Tom’s very thoughtful column, which hardly qualifies as intellectual fast-food, didn’t come to us through traditional journalism. Tom, like myself, is not a professional journalist. And while MediaPost does provide some editorial curation, it’s purpose it to provide a fairly transparent connection between industry experts like Tom and other experts like you. Tom’s piece came to us through a much more transparent information marketplace – the very same marketplace that Tom worries is turning us into an audience of mindless media junkies. And I should add that Tom’s piece was shared through social circles over 200 times.

So where is the disconnect here? The problem is that when it comes to human behaviors, there are no universal truths. How we act in almost any given situation will eventually distribute itself across a bell curve. Let’s take obesity, for instance. If we talk trends, Tom is absolutely correct. The introduction of fast food in North America coincided with an explosion of obesity, which as a percentage of the US population rose from about 10% in the 1950’s to almost 35% in 2013. But if we accept the premise that we all mindlessly crave calories, we should all be obese. Obesity rates should also continue to be going up until they reach 100% of the population. But those two things are just not true. Obesity rates have plateaued in the last few years and there are indications that they are starting to decline amongst children. Also, although fast food is now available around the world – obesity rates vary greatly. Japan has one of the highest concentrations of McDonald’s outlets per capita (25 per million) in the world but has an obesity rate of 3.2%, the lowest in all OECD countries. The US has a higher concentration McDonald’s (45 per million) but has an obesity rate 10 times that of Japan. And my own country, Canada, almost matches the US McDonald for McDonald (41 per million) but has an obesity rate half that of the US (14.3%).

My point is not to debate whether we’re getting fatter. We are. But there’s more to it than just the prevalence of fast food. And these factors apply to our consumption of media as well. For example, there is a strong negative correlation between obesity levels and education. There is also a strong negative correlation between obesity and income. Cultural norms have a huge impact on the prevalence of obesity. There are no universal truths here. There are just a lot of nebulous factors at play. So, if we want to be honest when we draw behavioral comparisons, we have to be accepting of those factors.

Much as I believe evolution drives many of our behaviors, I also believe that more open markets are better than more restrictive ones. As the mentality of abundance takes hold, our behaviors take time to adjust. Yes, we do snack on crap. But we also have access to high quality choices we could have never dreamed of before. And the ratio of consumption between those two extremes will be different for all of us. Consider the explosion of TV programming that has happened over the last 3 decades. Yes, there is an over-abundance of mindless dreck, but there is also more quality programming than ever to choose from. The same is true of music and pretty much any other category where markets have opened up through technology.

The way to increase the quality of what we consume, whether it be food, information or entertainment, is not to limit the production and distribution of those consumables through more restrictive markets, but to improve education, access and create a culture of considered consumption. Some of us will choose crap. But some of us will choose the cream that rises to the top. The choice will be ours. The answer is not to take those choices away, but rather to create a culture that encourages wiser choices.

The Secret of Successful Marketing Lies in Split Seconds

affordanceThe other day, I was having lunch in a deli. I was also watching the front door, which you had to push to get in. Almost everyone who came to the door pulled, even though there was a fairly big sign over the handle which said “Push.” The problem? The door had the wrong kind of handle. It was a pull handle, not a push. The door had been mounted backwards. In usability terms, the door handle presented a misleading affordance.

I suspect the door had been there for many years. I was at the deli for about 30 minutes. In that time, about 70% of the people (probably close to 50) pulled rather than pushed. Extrapolating this to the whole, that means over the years, thousands and thousands of people have had to try twice to enter this particular place of business. Yet, the only acknowledgement of this instance of customer pain was the sign that had been taped to the door – “Push” – and I suspect there was an implied “(You Idiot)” following that.

I suspect most marketing falls in the same category as that sign. It’s an attempt to fight the intuitive actions that customers take – those split-second actions that happen before our brain has a chance to kick in. And we have to counteract those split-second decisions because the path we have created for our customers was built without an understanding of those intuitive actions. After we realize that our path runs counter to our customer’s natural behaviors do we rebuild the path? Does the deli owner pay a contractor to remount the door? No, we post a sign asking customers to push rather than pull. After all, all they have to do is think for a moment. It seems like a reasonable request.

But here’s the problem with that. You don’t want your customers to think. You want them to act. And you want them to act as quickly and naturally as possible. The battles of marketing are won in those split seconds before the brain kicks in.

Let me give you one example. A few years ago I did a study with Simon Fraser University in Canada. We wanted to know how the brain responded in those same split seconds to brands we like versus brands we have no particular affinity to. What we found was fascinating. In about 150 milliseconds (roughly a sixth of a second) our brain responds to a well-loved brand the same way we respond to a smiling face. This all happens before any rational part of the brain can kick in. This positive reaction sets the stage for a much different subsequent mental processing of the brand (which starts at about 450 milliseconds, or half a second). And the power of this alignment can be startling. As Dr. Read Montague discovered, it can literally alter your perception of the world.

If you can rebuild your path to purchase to align with your customer’s intuitive behaviors, you don’t need to put up “push” signs when they stray off course. You don’t have to make your customers think. Here’s why that is important. As long as we operate at the intuitive level, humans are a fairly predictable lot. Evolution has wired in a number of behaviors that are universal across the population. You would not be risking your vacation fund if you placed a bet that the majority of people would try to pull a door with a door handle that suggested your should pull it, even if there was a sign that said “push.” As long as we operate on auto-pilot, we can plot a predicted behavioral course with a fair degree of confidence (assuming, of course, we’ve taken the time to understand those behaviors).

But the minute we start to think, all bets are off. The miracle of the human brain is that it has two loops of activity – one fast and one slow. The fast loop relies on instinct and evolved behavioral habits. It’s incredibly efficient but stubbornly rigid. The slow loop brings the full power of human rationality to bear on the problem. It’s what happens when we think. And once the prefrontal cortex kicks it, we are amazingly flexible but we pay the price in efficiency. It takes time to think. It also brings a massive amount of variability into the equation. If we start thinking, behaviors become much more difficult to predict.

The longer you can keep your customers on the fast path, the closer you’ll be to a successful outcome. Plan that path carefully and remove any signs telling them to “push.”

Mourning Becomes Electric

dreamstime_19503560Last Friday was a sad day. A very dear and lifelong friend of mine, my Uncle Al, passed away. And so I did what I’ve done before on these occasions. I expressed my feelings by writing about it. The post went live on my blog around 10:30 in the morning. By mid afternoon, it had been shared and posted through Facebook, Twitter and many other online channels. Many were kind enough to send comments. The family, in the midst of their grief, forwarded my post to their family and friends. Soon, there was an extended network of mourning that sought to heal each other, all through channels that didn’t exist just a few years ago. Mourning had moved online.

As you probably know, I’m fascinated by how we express our innate human needs through digital technologies. And death, together with birth, is the most universal of human experiences. It was inevitable that we would use online channels to grieve. So I, as I always do, asked the question – why?

First of all – why do we mourn? Well, we mourn because we are social animals. We are probably the most social of animals. So we grieve to an according degree. We miss the departed terribly. It is natural to try to fill the hole a death tears inside of us by reaching out to others who may share the same grief. James R. Averill believed we communally mourn because it cements the social bonds that make it more likely that we will survive as a species. When it comes to dealing with death, misery loves company.

Secondly, why do we grieve online? Well, here, I think it has something to do with Granovetter’s weak ties. Death is one of those life events where we reach beyond the strong ties that define our day-to-day social existence. Certainly we seek comfort from those closest to us, but the death also triggers the existence of a virtual community – defined and united by their grieving for the one who has passed away. Our digital networks allow us to eliminate the six degrees of separation in one fell swoop. We can share our grief almost instantaneously and simultaneously with family, friends, acquaintances and even people we have never met.

There are two other aspects of grief that I believe lend themselves well to online channels: the need to chronicle and the comfort of emotional distance.

Part of the healing process is sharing memories of the departed love one. And, for those like myself, just writing about our feelings helps overcome the pain. Online provides a perfect platform for chronicling. We can share our own thoughts and, in the expressing of them, start the healing process.

The comfort of physical distance seems a contradictory idea, but almost everyone I know who has gone through a deep loss has one common dread – dealing with a never-ending stream of condolences over the coming weeks and months, triggered by each new physical encounter.

When you’ve been in the middle of the storm, you are typically a few days ahead of everyone else in dealing with your grief. Your mind has been occupied with nothing else as you have sat vigil by the hospital bed. While the condolences are given with the best of intentions, you feel compelled to give a response. The problem is, each new expression of grief forces you to replay your loop of very painful memories. The amplitude of this pain increases when it’s a face-to-face encounter. Condolences that reach you through a more detached channel, such as online, can be dealt with at your discretion. You can wait until you marshall the emotional reserves necessary to respond. You can also respond to several people at a time. How many times have you heard this from a grieving loved one, “I just wish I could record my message and play it whenever I meet someone who wants to tell me how sorry they are for my loss?” It may seem callous, but no one wants to relive that pain over and over again. And let’s face it – almost no one knows the right things to say at a moment like this.

By the end of last Friday, my online social connections had helped me ease a very deep pain. I hope I was able to return the favor for others that were dealing with their own grief. There are many things about technology that I treat with suspicion, but in this case, turning online seemed like the most natural thing in the world.

How Activation Works in an Absolute Value Market

As I covered last week, if I mention a brand to you – like Nike, for instance – your brain immediately pulls back your own interpretation of the brand. What has happened, in a split second, is that the activation of that one node – let’s call it the Nike node – triggers the activation of several related nodes in your brain, which is quickly assembled into a representation of the brand Nike. This is called Spreading Activation.

This activation is all internal. It’s where most of the efforts of advertising have been focused over the past several decades. Advertising’s job has been to build a positive network of associations so when that prime happens, you have a positive feeling towards the brand. Advertising has been focused on winning territory in this mental landscape.

Up to now, we have been restricted to this internal landscape when making consumer decisions by the boundaries of our own rationality. Access to reliable and objective information about possible purchases was limited. It required more effort on our part than we were willing to expend. So, for the vast majority of purchases, these internal representations were enough for us. They acted as a proxy for information that lay beyond our grasp.

But the world has changed. For almost any purchase category you can think of, there exists reliable, objective information that is easy to access and filter. We no longer are restricted to internal brand activations (relative values based on our own past experiences and beliefs). Now, with a few quick searches, we can access objective information, often based on the experiences of others. In their book of the same name, Itimar Simonson and Emanuel Rosen call these sources “Absolute Value.” For more and more purchases, we turn to external sources because we can. The effort invested is more than compensated for the value returned. In the process, the value of traditional branding is being eroded. This is truer for some product categories than others. The higher the risk or the level of interest, the more the prospect will engage in an external activation. But across all product categories, there has been a significant shift from the internal to the external.

What this means for advertising is that we have to shift our focus from internal spreading activations to external spreading activations. Now, when we retrieve an internal representation of a product or brand, it typically acts as a starting point, not the end point. That starting point is then to be modified or discarded completely depending on the external information we access. The first activated node is our own initial concept of the product, but the subsequent nodes are spread throughout the digitized information landscape.

In an internal spreading activation, the nodes activated and the connections between those nodes are all conducted at a subconscious level. It’s beyond our control. But an external spreading activation is a different beast. It’s a deliberate information search conducted by the prospect. That means that the nodes accessed and the connections between those nodes becomes of critical importance. Advertisers have to understand what those external activation maps look like. They have to be intimately aware of the information nodes accessed and the connections used to get to those nodes. They also have to be familiar with the prospect’s information consumption preferences. At first glance, this seems to be an impossibly complex landscape to navigate. But in practice, we all tend to follow remarkable similar paths when establishing our external activation networks. Search is often the first connector we use. The nodes accessed and the information within those nodes follow predictable patterns for most product categories.

For the advertiser, it comes down to a question of where to most profitably invest your efforts. Traditional advertising was built on the foundation of controlling the internal activation. This was the psychology behind classic treatises such as Ries and Trout’s “Positioning, The Battle for Your Mind.” And, in most cases, that battle was won by whomever could assemble the best collection of smoke and mirrors. Advertising messaging had very little to do with facts and everything to do with persuasion.

But as Simonsen and Rosen point out, the relative position of a brand in a prospect’s mind is becoming less and less relevant to the eventual purchase decision. Many purchases are now determined by what happens in the external activation. Factual, reliable information and easy access to that information becomes critical. Smoke and mirrors are relegated to advertising “noise” in this scenario. The marketer with a deep understanding of how the prospect searches for and determines what the “truth” is about a potential product will be the one who wins. And traditional marketing is becoming less and less important to that prospect.

 

Consuming in Context

npharris-oscarsIt was interesting watching my family watch the Oscars Sunday night. Given that I’m the father of two millennials, who have paired with their own respective millennials, you can bet that it was a multi-screen affair. But to be fair, they weren’t the only ones splitting their attention amongst the TV and various mobile devices. I was also screen hopping.

As Dave Morgan pointed out last week, media usage no longer equates to media opportunity. And it’s because the nature of our engagement has changed significantly in the last decade. Unfortunately, our ad models have been unable to keep up. What is interesting is the way our consumption has evolved. Not surprisingly, technology is allowing our entertainment consumption to evolve back to its roots. We are watching our various content streams in much the same way that we interact with our world. We are consuming in context.

The old way of watching TV was very linear in nature. It was also divorced from context. We suspended engagement with our worlds so that we could focus on the flickering screen in front of us. This, of course, allowed advertisers to buy our attention in little 30-second blocks. It was the classic bait and switch technique. Get our attention with something we care about, and then slip in something the advertiser cares about.

The reason we were willing to suspend engagement with the world was that there was nothing in that world that was relevant to our current task at hand. If we were watching Three’s Company, or the Moon Landing, or a streaker running behind David Niven at the 1974 Oscar ceremony, there was nothing in our everyday world that related to any of those TV events. Nothing competed for the spotlight of our attention. We had no choice but to keep watching the TV to see what happened next.

But imagine if a nude man suddenly appeared behind Matthew McConaughey at the 2015 Oscars. We would immediately want to know more about the context of what just happened. Who was it? Why did it happen? What’s the backstory? The difference is now, we have channels at our disposal to try to find answers to those questions. Our world now includes an extended digital nervous system that allows us to gain context for the things that happen on our TV screens. And because TV no longer has exclusive control of our attention, we switch to the channel that is the best bet to find the answers we seek.

That’s how humans operate. Our lives are a constant quest to fill gaps in our knowledge and by doing so, make sense of the world around us. When we become aware of one of these gaps we immediate scan our environment to find cues of where we might find answers. Then, our senses are focused on the most promising cues. We forage for information to satiate our curiosity. A single-minded focus on one particular cue, especially one over which we have no control, is not something we evolved to do. The way we watched TV in the 60s and 70s was not natural. It was something we did because we had no option.

Our current mode of splitting attention across several screens is much closer to how humans naturally operate. We continually scan our environment, which, in this case, included various electronic interfaces to the extended virtual world, for things of interest to us. When we find one, our natural need to make sense sends us on a quest for context. As we consume, we look for this context. The diligence of our quest for that context will depend on the degree of our engagement with the task at hand. If it is slight, we’ll soon move on to the next thing. If it’s deep, we’ll dig further.

On Sunday night, the Hotchkiss family quest for context continually skipped around, looking for what other movies J.K. Simmons had acted in, watching the trailer for Whiplash, reliving the infamous Adele Dazeem moment from last year and seeing just how old Benedict Cumberbatch is (I have two daughters that are hopelessly in love, much to the chagrin of their boyfriends). As much as the advertisers on the 88th Oscars might wish otherwise, all of this was perfectly natural. Technology has finally evolved to give our brain choices in our consumption.

 

 

 

 

 

 

Why More Connectivity is Not Just More – Why More is Different

data-brain_SMEric Schmidt is predicting from Davos that the Internet will disappear. I agree. I’ve always said that Search will go under the hood, changing from a destination to a utility. Not that Mr. Schmidt or the Davos crew needs my validation. My invitation seems to have got lost in the mail.

Laurie Sullivan’s recent post goes into some of the specifics of how search will become an implicit rather than an explicit utility. Underlying this is a pretty big implication that we should be aware of – the very nature of connectivity will change. Right now, the Internet is a tool, or resource. We access it through conscious effort. It’s a “task at hand.” Our attention is focused on the Internet when we engage with it. The world described by Eric Schmidt and the rest of the panel is much, much different.   In this world, the “Internet of Things” creates a connected environment that we exist in. And this has some pretty important considerations for us.

First of all, when something becomes an environment, it surrounds us. It becomes our world as we interpret it through our assorted sensory inputs. These inputs have evolved to interpret a physical world – an environment of things. We will need help interpreting a digital world – an environment of data. Our reality, or what we perceive our reality to be, will change significantly as we introduce technologically mediated inputs into it.

Our brains were built to parse information from a physical world. We have cognitive mechanisms that evolved to do things like keep us away from physical harm. Our brains were never intended to crunch endless reams of digital data. So, we will have to rely on technology to do that for us. Right now we have an uneasy alliance between our instincts and the capabilities of machines. We are highly suspicious of technology. There is every rational reason in the world to believe that a self-driving Google car will be far safer than a two ton chunk of accelerating metal under the control of a fundamentally flawed human, but who of us are willing to give up the wheel? The fact is, however, that if we want to function in the world Schmidt hints at, we’re going to have to learn not only to trust machines, but also to rely totally on them.

The other implication is one of bandwidth. Our brains have bottlenecks. Right now, our brain together with our senses subconsciously monitor our environment and, if the situation warrants, they wake up our conscious mind for some focused and deliberate processing. The busier our environment gets, the bigger this challenge becomes. A digitally connected environment will soon exceed our brain’s ability to comprehend and process information. We will have to determine some pretty stringent filtering thresholds. And we will rely on technology to do the filtering. As I said, our physical senses were not built to filter a digital world.

It will be an odd relationship with technology that will have to develop. Even if we lower our guard on letting machines do much of our “thinking” (in terms of processing environmental inputs for us) we still have to learn how to give machines guidelines so they know what our intentions are. This raises the question, “How smart do we want machines to become?” Do we want machines that can learn about us over time, without explicit guidance from us? Are we ready for technology that guesses what we want?

One of the comments on Laurie’s post was from Jay Fredrickson, “Sign me up for this world, please. When will this happen and be fully rolled out? Ten years? 20 years?” Perhaps we should be careful what we wish for.  While this world may seem to be a step forward, we will actually be stepping over a threshold into a significantly different reality. As we step over that threshold, we will change what it means to be human. And there will be no stepping back.

#AlexfromTarget – An Unexpected Consequence of Technology

1414997478566_wps_10_Original_Tweet_of_Alex_frYes, I’m belatedly jumping on the #AlexfromTarget bandwagon, but it’s in service of a greater truth that I’m trying to illustrate. Last column, I spoke about the Unintended Consequences of Technology. I think this qualifies. And furthermore, this brings us full circle to Kaila Colbin’s original point, which started this whole prolonged discussion.

It is up to us to decide what is important, to create meaning and purpose. And, personally, I think we could do a better job than we’re doing now.

So, why did the entire world go ga-ga over a grocery bagger from Texas? What could possibly be important about this?

Well – nothing – and that’s the point. Thinking about important things is hard work. Damned hard work – if it’s really important. Important things are complex. They make our brains hurt. It’s difficult to pin them down long enough to plant some hooks of understanding in them. They’re like eating broccoli, or doing push ups. They may be good for us, but that doesn’t make them any more fun.

Remember the Yir Yoront from my last column – the tribal society that was thrown into a tail spin by the introduction of steel axes? The intended consequence of that introduction was to make the Yir Yoront more productive. The axes did make the tribe more productive, in that they were able to do the essential tasks more quickly, but the result was that the Yir Yoront spent more time sleeping.

Here’s the thing about technology. It allows us to be more human – and by that I mean the mixed bag of good and bad that defines humanity. It extends our natural instincts. It’s natural to sleep if you don’t have to worry about survival. And it’s also natural for young girls to gossip about adorable young boys. These are hard-wired traits. Deep philosophical thought is not a hard-wired trait. Humans can do it, but it takes conscious effort

Here’s where the normal distribution curve comes in. Any genetically determined trait will have a normal distribution over the population. How we apply new technologies will be no different. The vast majority of the population will cluster around the mean. But here’s the other thing – that “mean” is a moving target. As our brains “re-wire” and adapt to new technologies, the mean that defines typical behavior will move over time. We adapt strategies to incorporate our new technology-aided abilities. This creates a new societal standard and it is also human to follow the unwritten rules of society. This creates a cause and effect cycle. Technologies enable new behaviors that are built on top of the foundations of human instinct – society determines whether these new behaviors are acceptable – and if they are acceptable, they become the new “mean” of our behavioral bell curve. We bounce new behaviors off the backboard of society. So, much as we may scoff at the fan-girls that gave “Alex” insta-fame – ultimately it’s not the girl’s fault, or technology’s. The blame lies with us. It also lies with Ellen DeGeneres, the New York Times, and the other barometers of societal acceptance that offered endorsement of the phenomenon.

It’s human to be distracted by the titillating and trivial. It’s also human to gossip about it. There’s nothing new here. It’s just that these behaviors used to remain trapped within the limited confines of our own social networks. Now, however, they’re amplified through technology. It’s difficult to determine what the long-term consequences of this might be. Is Nicholas Carr right? Is technology leading us down the garden path to imbecility, forever distracted by bright, shiny objects? Or is our finest moment yet to come?