Category Archives: Intrapersonal Processes

How Netflix just made a bad thing worse

By Kevin R. Betts

Netflix witnessed a storm of customer outrage and tumbling stock prices this month as they dramatically increased their price for subscription to the service. Early this morning, CEO Reed Hastings reacted with an email to customers. The email started, “I messed up. I owe you an explanation.” And an explanation did follow – not only about why the price hike would continue, but also about how subscribers would now be paying for two services, Netflix and Qwikster, if they wished to continue with the full set of features previously provided. I predict that this latest move will lead to even more problems for the company.

I am a longtime subscriber to Netflix and enjoy their DVD and streaming services immensely. Sure, I was irritated with the dramatic price increase just like many other customers. But I accepted it and opted to continue receiving their services. The latest change has led me to reconsider my options, however. I enjoy movies and television, but do I really need to subscribe to more than one independent service provider for this? I never saw a reason to subscribe to Hulu plus or Amazon Prime for their video services because Netflix was already meeting my needs. So why should I subscribe to both Netflix and Qwikster? I shouldn’t and I now intend to update my video subscription service accordingly.

What Netflix must realize is that my decision to opt out of one service has little to do with its actual price. Hastings makes clear in his email to customers that “There are no pricing changes (we’re done with that!).” Rather, it is my perception that has changed. I do not want to pay for two very similar video services. And I predict that many other customers will think and react similarly. Consider research addressing the effectiveness of partitioned versus bundled pricing. Sheng, Bao, and Pan (2007) state, “It is profitable to partition a total price into two separate parts only when the surcharge is relatively small compared to the base price, or the surcharge has a well-justified purpose. Otherwise, an all-inclusive price might generate higher purchase intentions, thus increasing demand.” Not only did Netflix partition its prices in such a way that has already proved to drive away customers, but they now want us to continue our patronage through two independent service providers. And away go another group of subscribers.

I hope that Netflix has thought about this issue more than I have because it is likely to have long-term consequences for their success as a company. Dramatic price hikes this month drove enough customers away. Making it psychologically easier for us to forgo their services is unlikely to make things better.

Read more:

Netflix renames DVD-by-mail service, adds video games (CNN)

Sheng, S., Bao, Y., & Pan, Y. (2007). Partitioning or bundling? Perceived fairness of the surcharge makes a difference. Psychology and Marketing, 24, 1025-1041.

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Should Pakistan be considered a terrorist state?

By Kevin R. Betts

When the U.S. SEAL team raided Osama bin Laden’s compound in Pakistan earlier this month, they did so without any approval from Pakistani officials. They covertly flew helicopters into the region, raided the compound in a fierce firefight, and killed bin Laden and several others. The secretive nature of this raid follows from years of American distrust toward Pakistan, an ostensible ally in the fight against terrorism. Recent events have merely added fuel to the fire. Given that the U.S. was able to locate bin Laden from thousands of miles away, Americans are now asking why Pakistani military and intelligence agencies couldn’t do the same within their own country. Bin Laden resided in an elaborate compound only 80 miles from the Pakistani capital of Islamabad, and just 800 yards from a major military academy. Was Pakistan truly unaware of bin Laden’s whereabouts, or were they complicit in maintaining his cover?

The nature of this question poses an international Prisoner’s Dilemma. Emerging from game theory, the Prisoner’s Dilemma demonstrates why two parties might not cooperate even if it is in both of their best interests to do so. Generally, such situations require that each party choose between cooperating and defecting with the interests of an adversary. In the present scenario, Pakistan can choose to cooperate with the fight against terrorism or not. Salman Rushdie from Newsweek points out that “Pakistan is alarmed by the rising Indian influence in Afghanistan, and fears that an Afghanistan cleansed of the Taliban would be an Indian client state, thus sandwiching Pakistan between two hostile countries.” However, Pakistan also receives billions of military and intelligence boosting dollars from the United States. Thus, it may be in Pakistan’s interests to ignore certain terrorist activities (defect) while simultaneously appearing bound to U.S. interests (cooperate).

Defecting can grant the most valued outcome in a Prisoner’s Dilemma because it does not require compromise with the adversary’s demands, but this outcome is realized only if the other party chooses to cooperate at the same time. For instance, Pakistan could ignore (or support) terrorist activities while still accepting U.S. funds. If both parties choose to defect, the least valued outcome will result. In this scenario, Pakistan loses U.S. funding and the U.S. loses an ally in the fight against terrorism. Mutual cooperation grants each party a moderately valued but mutually beneficial outcome. Given that the United States has cooperated with Pakistan by providing monetary assistance, it is hoped that they will cooperate as well by assisting in the fight against terrorism.

Given this international Prisoner’s Dilemma, the U.S. must now make judgments about whether Pakistan has cooperated or defected. Many have argued that Pakistan has long been defecting, and that their apparent lack of knowledge about Bin Laden’s whereabouts reveals that this defection continues. Others argue that despite select intelligence failures, Pakistan remains an important ally to the U.S. in a region laden by terrorist threats. Whether the U.S. perceives Pakistan as having cooperated or defected will likely influence their decision about whether they should cooperate or defect themselves. What do you think? Should the U.S. continue to consider Pakistan an ally, or do recent events require a change in perspective?

Read more:

Pakistan: A Terrorist State (Newsweek)

Evans, A.M., & Krueger, J.I. (2009). The psychology (and economics) of trust. Social and Personality Psychology Compass, 3, 1003-1017.

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Inspire magazine: Senseless extremist propaganda or effective recruitment tool?

Inspire Magazine, Spring Edition

By Kevin R. Betts

As millions of Americans tune in to news coverage about the death of Osama Bin Laden this week, a much smaller but equally ambitious group of Westerners are carefully reading and perhaps adopting the views put forth by contributors to the Spring issue of Inspire magazine. Contributors to this controversial and provocative English online magazine hope to inspire Western youth to take violent action against fellow Westerners in defense of Islam. In the most recent issue, contributors celebrate killings of Western service men and women, provide guidance on how to operate a Kalashnikov rifle, and discuss how current protests in the Middle East may be beneficial for terrorist groups such as al Qaeda. Before we write this magazine off as senseless extremist propaganda, let’s take a moment to seriously consider whether Inspire might actually be effective in at least partially meeting its intended goals.

Like other magazines, Inspire exerts both informational and normative influence over its readers. The information the magazine provides is of considerable value to its readers because it is unique and difficult to find through other means. Without explicit training, most Westerners wouldn’t know how to operate a Kalashnikov rifle. Likewise, few if any Western news contributors express the view that current protests in the Middle East may be beneficial to groups such as al Qaeda. Inspire provides English speaking readers with unique and valuable information that is not available to them through traditional venues. The normative influence that Inspire exerts over its readers is more subtle. The prevailing view among Westerners seems to be that violence enacted in defense of Islam is deplorable. Inspire suggests that this violence is not only legitimate, but desirable. Knowing that they have the support of others, readers that accept this divergent perspective may begin to engage in new behaviors that are consistent with it. These behaviors may range from mere support for extremist goals endorsed by the magazine to actual violence against Westerners. Inspire seems to effectively provide information that interested readers consider valuable, and presents this information in a light that makes it appear normative.

So Inspire may be at least partially effective in meeting its goals. English speaking Westerners—perhaps even some of your friends and neighbors—will read this magazine and make judgments about it. Some of these judgments will be in favor of the views expressed by contributors to the magazine. What do you think? Will Inspire inspire many Westerners to support and/or engage in violent defense of Islam? Or will its message fall on deaf ears along with other senseless extremist propaganda?

Read more:

Bin Laden is dead, Obama says (New York Times)

Chilling tips in al-qaeda magazine (Al Jazeera)

Smith, J.R., & Louis, W.R. (2009). Group norms and the attitude-behavior relationship. Social and Personality Psychology Compass, 3, 19-35.

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On Being Phony at Being Phony: The Impostor Phenomenon

By: Christopher C. Duke, Ph.D.

Do you ever feel like you are, in some way, a fraud? Despite your successes in life – your good grades, your professional accomplishments, the high praise you receive from others – have you felt like you will eventually be unmasked as an impostor? This feeling is surprisingly common, and has been termed the Impostor Phenomenon (or Syndrome). It’s not a “real” disorder (you won’t find it in the DSM), but it is a very real phenomenon that affects many genuinely successful people.

First described by Clance and Imes (1978), these feelings are especially prevalent among graduate students, who feel they have been let in by accident, and they will eventually be unmasked as intellectual frauds. This is a concertn that is particularly relevant to the readers of this blog. However, the Impostor Phenomenon often lingers with highly successful professionals. A partial explanation could be that the more we progress in an area, the more we become aware of the limitations of our knowledge and abilities. This is not a new idea; Bertrand Russell said “One of the painful things about our time is that those who feel certainty are stupid, and those with any imagination and understanding are filled with doubt and indecision.” But that may not be the whole story; many researchers have suggested the Impostor Phenomenon disproportionately affects women, raising the question of whether internalized negative self-stereotypes may be working to sabotage perceived self-efficacy and the internalization of success.

There is still a lot we don’t know about the Impostor Phenomenon – its frequency, distribution among demographic groups, ultimate causes, and how to reduce its negative effects. Much more empirical research is needed. But we can say for sure that if you feel like your successes have somehow been an accident and that it is only a matter of time before you are unmasked, you are by no means alone, and you share this feeling with many of the bright and talented. If you do feel this way, try talking with your friends and advisors about it. You may be surprised to learn just how common it is to feel like an impostor.

Clance, P. R., & Imes, S. (1978). The Imposter Phenomenon in high achieving women: Dynamics and therapeutic intervention. Psychotherapy Theory, Research and Practice, 15, 241-247.

Laursen, Lucas (2008). No, you’re not an impostor. Science Careers.

“I” love “you”

By Erica Zaiser

Valentine’s Day is tomorrow and so many couples may be reflecting on the status of their relationship. If you aren’t already over-thinking what every little thing your partner does (or doesn’t do) this season means, here is yet another way in which you can dissect the quality of your relationship during your romantic evening. Or, at the very least, this might give you something interesting to talk about with your date when you realize you have nothing in common but already paid for two overpriced three-course Valentine’s Day meals.

According to recent research on the language of couples, the words used when a couple discusses their relationship can be indicative of their satisfaction in the relationship and its longevity. In studies looking at daily Instant Messaging conversations between couples, researchers found that the pronouns used most could predict both satisfaction with a partner and the likelihood that the relationship would still be intact 6 months later. For women, their use of “I” was most related to satisfaction with their partner. But men’s use of “me” suggested a small negative relationship with their partner’s satisfaction with them. Although negative emotion words had no relation to satisfaction or stability, the use of positive emotion words by men was related to increased satisfaction for both partners and an increased chance of relationship survival.

There is other research suggesting that the use of “I” can be beneficial over “you” because “you” can be blaming while “I” is self-reflective, but this research shows that there may be gender differences between the perception of and meaning behind pronoun choice. Furthermore, the researchers suggest that word choice by couples is context dependent. Using “you” when discussing the relationship is very different from the use of “you” in normal everyday conversation.

Happy Valentine’s Day everyone. Try not to spend the whole evening with your date (if you are lucky enough to have one) counting their “you”s and “I”s.

Read more: Am “I” more important than “you”

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