ESLvideo Quiz
fashion
fashion
Listening
Quiz
Watch the video and answer the quiz questions.
TERRY WU: The human brain is not
a thinking machine that feels, it's a feeling machine that thinks. Humans have
this innate desire to seek a sense of control. Driven by our strong emotions, we stop making
rational decisions when it comes to buying. We buy products simply because we want to
gain a sense of control. At the same time, our innate desire to seek instant
gratification drives us to buy more and more. NARRATOR: How can we resist
being manipulated into spending? WU: With neuromarketing, we can
understand how our emotions, feelings, and intuition shape our buying decisions.Money can
bring joy, security, excitement, and satisfaction. At the same time, money can bring worry,
jealousy, resentment, and anxiety. NARRATOR: And what really drives our need
to shop? This is Your Brain on Money. This is Terry Wu. He's a neuroscientist
and a marketing consultant, and he wants people to understand the
irrational forces driving their spending habits. WU: From the evolutionary perspective,
the human brain evolved to feel first and think later. The emotional brain is called
the limbic system. It's responsible for all our emotions like joy, happiness, anger, fear,
and anxiety. The rational brain is called the frontal cortex; it is heavily involved in
reason and logic.Sometimes these two systems conflict with each other, and our decisions
are the results of a complex interaction. NARRATOR: At the start of the COVID-19 pandemic,
many Americans stockpiled toilet paper, but not because it had anything
to do with keeping them safe. WU: Buying toilet paper was a simple coping
mechanism for people to deal with their stress. While under stress, the frontal cortex
stops functioning at full capacity. Our emotional brain kicks into a higher
gear; it overpowers our rational thinking, we feel like we're losing a sense of control.
We have difficulty in controlling our impulses and delay our gratification. We stop making
rational decisions when it comes to buying. NARRATOR: The miracle of modern abundance
means more human beings have near-instant access to affordable products than in any
other time in the history of the world. WU: With online shopping available 24/7, it's
very tempting to shop online all the time, and to seek that instant gratification and to
seek that instant reward. We think Amazon is in the retail business, but in reality Amazon
is in the instant gratification business. The human brain was not evolved to
interact with a computer screen, the human brain was evolved
to interact with other humans. NARRATOR: Shopping is often easy and cheap.
It makes sense that human neuropsychology might not be prepared to effectively navigate
the constant deluge of social media shopping ads and one-click
purchase buttons. WU: Many companies subtly use crowd influence
to nudge us to buy products.Imagine you try to buy a microphone for your computer. Amazon
helps you make that decision by showing you the best sellers, the Amazon's choice, and
those products that have the highest ratings. So Amazon pretty much has made that decision
for you before you even went to Amazon. NARRATOR: We often use credit
cards when shopping online, which means there's a disconnect between
our present self that gets to enjoy the new item and our future self who
has to deal with the consequences. WU: Credit card companies and loan companies know
this very well. They intentionally disconnect the present self and the future self. When we spend
money with cash, we can feel that money is leaving us. This is why spending money with a credit
card we tend to spend more simply because we don't feel the pain of paying. Companies wanna
give us the illusion that we're in control. When people have a better shopping
experience, guess what, they buy more. NARRATOR: It can be difficult to stop spending that's driven
by the emotional brain, but it's not impossible. WU: The important thing is you create some
barriers between your desire to shop and shopping.In the old days, we did not shop every
day, we shopped maybe once or twice a week. Designate a day in the week to
shop. Allow yourself some time between the moment you think of buying
something and the time you buy something. NARRATOR: Stress reduction can strengthen
our ability to resist the shopping impulse. Terry is a committed runner. It helps
temper his desire to buy too many books. WU: One way to lower our stress is physical
activity. Anytime you feel like you're under stress, instead of going to shop, go outside,
move your body. When your muscles become relaxed, your stress level goes down. Another
way to reduce your stress is to seek social support. When you're connected with other
people, you gain a sense of safety. That sense of safety can blunt your stress response and
make your frontal cortex function better. Online shopping has become the predominant
way for us to buy things in our lives, but are we going to adapt this in a bad way
or in a good way? The answer is not clear yet.
a thinking machine that feels, it's a feeling machine that thinks. Humans have
this innate desire to seek a sense of control. Driven by our strong emotions, we stop making
rational decisions when it comes to buying. We buy products simply because we want to
gain a sense of control. At the same time, our innate desire to seek instant
gratification drives us to buy more and more. NARRATOR: How can we resist
being manipulated into spending? WU: With neuromarketing, we can
understand how our emotions, feelings, and intuition shape our buying decisions.Money can
bring joy, security, excitement, and satisfaction. At the same time, money can bring worry,
jealousy, resentment, and anxiety. NARRATOR: And what really drives our need
to shop? This is Your Brain on Money. This is Terry Wu. He's a neuroscientist
and a marketing consultant, and he wants people to understand the
irrational forces driving their spending habits. WU: From the evolutionary perspective,
the human brain evolved to feel first and think later. The emotional brain is called
the limbic system. It's responsible for all our emotions like joy, happiness, anger, fear,
and anxiety. The rational brain is called the frontal cortex; it is heavily involved in
reason and logic.Sometimes these two systems conflict with each other, and our decisions
are the results of a complex interaction. NARRATOR: At the start of the COVID-19 pandemic,
many Americans stockpiled toilet paper, but not because it had anything
to do with keeping them safe. WU: Buying toilet paper was a simple coping
mechanism for people to deal with their stress. While under stress, the frontal cortex
stops functioning at full capacity. Our emotional brain kicks into a higher
gear; it overpowers our rational thinking, we feel like we're losing a sense of control.
We have difficulty in controlling our impulses and delay our gratification. We stop making
rational decisions when it comes to buying. NARRATOR: The miracle of modern abundance
means more human beings have near-instant access to affordable products than in any
other time in the history of the world. WU: With online shopping available 24/7, it's
very tempting to shop online all the time, and to seek that instant gratification and to
seek that instant reward. We think Amazon is in the retail business, but in reality Amazon
is in the instant gratification business. The human brain was not evolved to
interact with a computer screen, the human brain was evolved
to interact with other humans. NARRATOR: Shopping is often easy and cheap.
It makes sense that human neuropsychology might not be prepared to effectively navigate
the constant deluge of social media shopping ads and one-click
purchase buttons. WU: Many companies subtly use crowd influence
to nudge us to buy products.Imagine you try to buy a microphone for your computer. Amazon
helps you make that decision by showing you the best sellers, the Amazon's choice, and
those products that have the highest ratings. So Amazon pretty much has made that decision
for you before you even went to Amazon. NARRATOR: We often use credit
cards when shopping online, which means there's a disconnect between
our present self that gets to enjoy the new item and our future self who
has to deal with the consequences. WU: Credit card companies and loan companies know
this very well. They intentionally disconnect the present self and the future self. When we spend
money with cash, we can feel that money is leaving us. This is why spending money with a credit
card we tend to spend more simply because we don't feel the pain of paying. Companies wanna
give us the illusion that we're in control. When people have a better shopping
experience, guess what, they buy more. NARRATOR: It can be difficult to stop spending that's driven
by the emotional brain, but it's not impossible. WU: The important thing is you create some
barriers between your desire to shop and shopping.In the old days, we did not shop every
day, we shopped maybe once or twice a week. Designate a day in the week to
shop. Allow yourself some time between the moment you think of buying
something and the time you buy something. NARRATOR: Stress reduction can strengthen
our ability to resist the shopping impulse. Terry is a committed runner. It helps
temper his desire to buy too many books. WU: One way to lower our stress is physical
activity. Anytime you feel like you're under stress, instead of going to shop, go outside,
move your body. When your muscles become relaxed, your stress level goes down. Another
way to reduce your stress is to seek social support. When you're connected with other
people, you gain a sense of safety. That sense of safety can blunt your stress response and
make your frontal cortex function better. Online shopping has become the predominant
way for us to buy things in our lives, but are we going to adapt this in a bad way
or in a good way? The answer is not clear yet.
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See plansDiscussion Questions
- 1. What emotions influence our shopping decisions?
- 2. How does stress affect our buying behavior?
- 3. Why do we feel less pain when using credit cards?