342. Melina’s Go-To Brainy Books: Behavioral Economics Books You Need To Read (Refreshed Episode)

Welcome to episode 342 of the Brainy Business Understanding the Psychology of why People Buy Today's episode is all about my Go to Brainy Books. Ready? Let's get started.

You are listening to the Brainy Business Podcast where we dig into the psychology of why people buy and help you incorporate behavioral economics into your business, making it more brain friendly. Now here's your host, Melina Palmer.

Hello.

Hello everyone. My name is Melina Palmer and I want to welcome you to the Brainy Business Podcast. Today's episode is all about my Go to Brainy Books. This episode Originally aired on December 3, 2020. Kind of interesting how that lines up as this is coming out at the end of November in 2023. I guess that's partially because it's a good time for anyone who's considering gifting a book or five this holiday season. It is funny how many comments I get from listeners, whether it's people reaching out directly or commenting on social media letting me know how many books they've bought and read because of me and the Brainy Business Podcast, some half jokingly curse my name a bit because they can't help but get just one more. And I totally get it. I know. I'm so lucky to have reading new and interesting books be part of my job. These days. I often get the amazing privilege of reading books even before they get released to the public. How cool is that? And for many of the great books I read, I get to speak with the author to understand their motivation behind writing the book, the way they approached the work, and what they're excited about today. Because I I don't know if you know this, but books take a long time to come out after you've finished writing them. At the time of this episode, it's been over six months since I finished the first full draft of the manuscript for my third book, the Truth About Pricing, and it still isn't even going to be coming out for a few more weeks until January 9th of 2024.

Yay.

So in a world where I talk about books constantly, you may be wondering why I decided to refresh this one today. Well, it is because this upcoming Friday's episode is a brand new book list. When this episode you're going to hear today first came out, I mentioned that.

I had intentions to do a lot.

Of these with book suggestions based on specific themes and somehow this is the first time I'm doing another one. Let me know if you like this format by the way, and if so, what you might like Future book lists for you're going to find me as the brainy Biz on all the socials and as Melina Palmer on LinkedIn. I love incorporating your feedback into the show whenever possible. And this content is for you after all, so don't forget there are links for everything, including past episodes, all the books, and a full time stamped summary of the episode all waiting for you in the show notes which are found within the app you're listening to and at the brainy business.com 342 all right, let's talk about my Go to Brainy.

Books if you've been listening to the podcast for a while, it likely won't surprise you to learn that when people ask me for my book recommendations, or which episode of the podcast they should start with, or whether they should get a Ph.D. master's, or if the certificate program at Texas A and M would be a fit for them, I always ask some more questions. The most common first questions could be something like, well, what are you looking to do with the information? Or how do you want to apply it? Or what's the goal? Sure, I can recommend books on a whim, but it's best to know what you want to do with the information to have the most useful one for you. In this episode, I'm only going to talk about the books I reference most often and most commonly recommend. And as a heads up, I expect this to be the first in a series on the podcast where I will recommend books for various topics. But for now, I'm going to tell you a little about seven books and when I recommend using them. The first three are ones you've likely heard before, the most common books in the space, perhaps really foundational stuff. Then there are a couple books that are more in the marketing, branding, messaging space, and we'll round it out with some productivity advice. First on the list is Daniel Kahneman's Thinking Fast and Slow. Kahneman is a pillar in the field, the first to win a Nobel Prize, and he, along with the late Amos Tversky, conducted so much of the research that the field is based upon, it's amazing how many concepts are rooted in Kahneman's work. A warning to you. This is the biggest of the books I'm recommending today. 418 pages. And interestingly, it looks like they have 418 citations here as well, plus two appendices. It's a bit of a bear for people who are just getting into the field who are not looking for a weighty academic style book. Professor Kahneman's might not be your best first choice. But if you're really wanting to understand behavioral economics and behavioral science what it's built upon, and get a peek inside the inner workings of the brain of one of the field's founding members numbers, it's definitely worth it. I might go so far as to say that you shouldn't call yourself a behavioral economist or behavioral scientist until you've read this whole book, and for that matter, the next book on the list as well. Personally, I adore this book. I have oodles of highlights throughout and notes in the pages, sticky notes marking important passages I reference in my Behavioral Economics Foundation's curriculum at A and M and in my presentations and other episodes just all over the place. It's definitely easier to read than some of Kahneman's academic papers, and he does a really nice job of breaking up the chapters, including images when they're helpful, walking you through studies and research he's led over his many decades long career. And there's a very handy reference area in the back, so if you want to read a little about framing or anchoring or loss aversion, you can flip to the back and find the exact pages that concept is, is referenced, used or applied. Kahneman is a core source of the dual system theory of how our brains work, what I call the subconscious and conscious here on the podcast he calls System 1 and System 2. If you want more about how he sees this working and how it all comes together in people's behavior. Thinking Fast and Slow is a great book for you. If you're worried about the heft of it, consider doing a chapter at a time. Many are only about 10 pages long. And then spend some time reflecting and read another chapter the next day. It's worth the time and thoughtfulness instead of rushing through getting it all done. There's a lot there and it's pretty much all gold. Next we have our other Nobel laureate, Richard Thaler, and the book he co authored with Cass Sunstein, Nudge. There has of course already been a seven part series on the podcast about nudges and choice architecture and and this book is full of even more great examples. The book is broken into five parts. First is that basis of our brains and how they work, called humans and Econs. It shares what a nudge is with some information about biases in the brain as well as how we're a herding species, and then introduces choice architecture. Part two is case studies and examples related to money, including getting people to invest in retirement via the Save More Tomorrow program. Then on to health in part three, like using nudges to increase organ donations. Part four is called Freedom and talks about choices for school and the idea of privatizing marriage. And lastly they have extensions and objections with another 32 nudges and other examples on nudging that are incredibly interesting and inspiring but didn't fit into one of those first categories. If you're looking to influence behavior through nudging to improve decisions about health, wealth and happiness, and just want a great foundation in the entire concept of nudges and choice architecture, I highly recommend Nudge. It's an easier read than Thinking Fast and Slow, but still of course, full of citations, research and the like. The last of our foundational most common books you've probably seen on any behavioral economics list is Predictably Irrational by Dan Ariely. Dan has written many books which are all incredible and many of those are hanging out on a shelf I have here and pull out for references as well, but not as much as I use this original work. One of the things I love about Dan is his conversational tone. Like all the authors on this list, he is incredibly knowledgeable and includes tons of interesting stories and research throughout his books, but the voice he uses makes it so they're easy to read and digest. They read more like a novel than many of the other books in the field, which is nice and likely why this became such a a popular introduction to the field for many. If you've not yet read Predictably Irrational and are interested in the hidden forces that shape our decisions, I highly, highly recommend this book. And while it's third on my list of foundational books, if you're looking for a first foray into behavioral economics books to start reading, I would likely start with Predictably Irrational because it's so relatable. Then you can decide if you want to jump to Nudge or Thinking Fast and Slow next. But I of course recommend all of them and you can get them in any order you want. I say just pick one and go. If it sounds interesting, do it. You can always jump around a little bit. Predictably Irrational is a really great place to start. Now we get into our next category, which is more in the consumer mindset, business, application into marketing strategy and really thinking about applying what you learn from the insights of the Brain section. The first book in this category is called the Buying Secrets for Selling to the Subconscious Mind by AK Pradeep. He starts by giving great insights into the brain and how it has developed with details on the senses and the processes going on in the brain and how it relates to today's buying behavior. The book was published in 2010, so when I say today's note that there may be some changes in the last decade, especially as he's talking about the types of software and hardware that's used, but it's still a phenomenal, very applicable book. When you've heard me talk about the brain like a computer and those 11 million bits to 40 bits ratios and how the subconscious and conscious brain are working, the buying brain is the source of that. In addition to talking about the brain in general, there are also dedicated chapters on the boomer brain, female brain, mommy brain, empathic brain, and how they're buying. Part two is all about engaging with that buying brain, digging in on brands, products, packaging, shelf displays, customer journey, social media advertising, and buying grains on screenshots. It's really a wealth of information in relatable speak with actionable tips that's also engaging to read. That's a tall order. A big feat to be able to get into one book, which is why it is here on my top Go to Brainy Book Recommendations. It's a fascinating book you may not have seen on other lists, but I highly recommend it and as you know, cite it often myself. The next book is another one you may not have heard of or seen on lists before. It's called Neurobranding by Peter Steidel. One of my favorite quotes, a brand is a memory comes from this book. It gives a baseline of neuroscience and how the field applies to marketing, and it came out a few years after the buying brain in 2014. Steidel also wrote Neuromarketing for Dummies and other books that go into marketing in a recession, how to use Brand Vision archetypes, and revitalizing Mature Brands. This book, Neurobranding delves into influencing considered purchase decisions and habitual buying expectation management and shopper marketing, brand positioning strategies, disrupting purchasing behavior and marketing communications. It's another wealth of information that is particularly relevant for those in marketing, branding and communications that really want an edge that comes from the neuroscience side of those fields as they are continuing to develop and emerge. I really recommend Neurobranding by Peter Seidel. The last two books are ones you heard on the podcast before as their authors came on specifically to talk about these works. Those episodes will of course be linked in the Show Notes, as is Dan Ariely's interview on Shapa, and all the books are listed there with their respective links as well. As a reminder, the Show Notes are atthebrainybusiness.com 129 for when you want to grab your books. The next book is kind of a bridge between the marketing space and customer journeys and productivity. It's Friction by Roger Dooley. Friction is such an eye opening book. It has so many practical examples that apply to business, like expense reports with unnecessary friction and forms on a website that had small changes that increased or decreased usage and adoption rates. Roger gives lots of examples of times you would want to reduce friction, how to spot it and tackle it, as well as a few times where a business can benefit from some additional friction. Friction is essentially how easy it is to do business with you when there are additional clicks or boxes to fill out or a form or back and forth emails or policies or procedures or just too much information. It's all friction and opportunities where your customer or co worker or whomever might get frustrated and bail. Remember a few weeks ago on episode 126 when I talked about the biggest mistake businesses make when applying behavioral economics? It is from the very beginning and not properly understanding the problem. Roger does a great job of sharing examples of understanding the problem before jumping in and solving it. Reducing friction is important, but you need to know the behavior you're trying to nudge people toward before focusing on changing the processes. This book helps you to see how other businesses have tackled that as well as ways you can relate to it in your own business. And because we all have lots of friction in our own lives, I think it's a great segue into our last book which is all about productivity and being less distracted. Or as Niraal calls it, indistractable. You know you chose the right list of books when you want to start every introduction off with. I love this book and Indistract is no exception. This book is so powerful and while it isn't necessarily about behavioral science specifically, it's so incredibly important. NIR shares about motivation, understanding your internal and external triggers and how they apply to you, making time for the things that matter and helping you to actually focus on them. There are tips for preventing distraction, making your workplace indistractable, how to raise indistractable children, and how to have indistractable relationships. Seriously, this book is full of wisdom and tips. I really loved part three on hacking back external triggers. Those are all the dings, pings and notifications that keep you distracted. He includes specific tips for hacking back your work interruptions, email, group chat, meetings, your smartphone, your desktop, online articles and feeds. So useful and easy to begin applying instantly and in the true nature of being indistractable. There's not a lot of fluff. Some of those chapters are just a couple of pages, but they give you the right information in the way that you need it to take an action and move forward. If you've heard me talk about this before or read the article that I wrote on it for Inc. Which is in the show notes, you know that I used Ineer's tips to reduce my own notifications so I don't get push notifications for ads, any social media, email, or any apps anymore besides text messages and phone calls. It's amazing the difference it makes and everyone should read this book to gain back time and be more productive. When you have a better understanding of how your brain works, it makes it easier to take on those shifts that may seem difficult. It was really hard for me to first take those notifications off of my phone, but it was an easier time. I was able to actually do it because I understood why from the insights from this book. When boiling indistractible down to its core insight, the biggest takeaway for me is the understanding that the opposite of distraction is traction and that you can't say that something is a distraction until you know what it's distracting you from. This book will help you understand how to find your traction and also how to keep yourself from getting distracted from those most important things. A go to book to be sure, which is why it made the list. I'm constantly recommending Indistractable and all the books on this list to people around the world. Here is the summary again, so you can check your notes if you took them. And of course, they're already all linked up for you in the show notes. Our foundational books are Thinking Fast and Slow by Daniel Kahneman, Nudge by Richard Thaler and Cass Sunstein, and Predictably Irrational by Dan Ariely. Then are our marketing and brand books, the Buying Brain by AK Pradeep and Neurobranding by Peter Steidel, and we bridge the path between marketing and efficiencies, Productivity Experience with Friction by Roger Dooley and round it all out with Indistractable by Nir Eyal. I highly recommend each and every one of these books. You will not be disappointed with all the great material within them.

So what got your brain buzzing as you learned about these brainy books today? For me, it's fun to look back and hear how I was talking about these books several years ago. I've read well over a hundred books since this episode first came out, so it's really interest to see how my suggestions evolve over time. For the most part, I still recommend these books and reference them often, but as time goes on and I've looked that thing up 16 times or there's another fascinating new angle or approach, there are new books and authors in the mix and I love that it is cool to see how things are different and what has stayed the same. As I said at the top of the episode, the reason I refreshed this one today is because this upcoming Friday's episode is an all new never before seen or heard booklet list. The focus of this one is Books that changed the way I think. This means the way I think about my brain and how our brains really work, the way I think about thinking, the way I think about problems. All of it. These books are ones that changed me and that while I was reading them I was constantly saying whoa. Or wait, what? I'm pretty sure all the listeners of the show are looking for that sort of brainy inspiration, so I really believe you're going to love this list. Coming up on on Friday, if you aren't already subscribed to the Brainy Business podcast, now's a great time to do so to ensure you don't miss that one or any other episode. There are of course links for that and so much more in the show. Notes like links to related past episodes, books, of course, a timestamp summary of the episode and more. It's all waiting for you in the app you're listening to and atthe brainy business.com 3. And just like that, episode 342 On My Go to Brainy Books is done. Join me Friday for a brand new episode with a brand new book list featuring the books that changed the way I think and understand my own brain. And I think they're gonna do the same for you too. It's gonna be a lot of fun. You don't want to miss it. Until then, thanks again for listening and learning with me and remember to be thoughtful.

Thank you for listening to the Brainy Business podcast. Molina offers virtual strategy sessions, workshops, and other services to help businesses be more brain friendly. For more free resources, visit thebrainybusiness.com.