Why We’re Irrationally Loyal to Amazon Prime

2 out of 3 internet users in the USA pay for Prime.  Yet, most of them are irrationally loyal.  They feel like the subscription provides more cost savings than reality.  Today, on Nudge, Richard Shotton and I explore the behavioural science behind Amazon Prime.  We look at the sunk-cost fallacy and pennies-a-day effect to explain why so many are irrationally loyal to Amazon Prime.  ---  Subscribe to the Nudge Vaults: https://www.nudgepodcast.com/vaults Read Richard’s book: https://a.co/d/fEW7amQ Sign up for my newsletter: https://www.nudgepodcast.com/mailing-list Connect on LinkedIn: https://www.linkedin.com/in/phill-agnew-22213187/ Watch Nudge on YouTube: https://www.youtube.com/@nudgepodcast/  --- Today’s sources: Arkes, H. R., & Blumer, C. (1985). The psychology of sunk cost. Organizational Behavior and Human Decision Processes, 35(1), 124–140. Gourville, J. T. (1998). Pennies-a-day: The effect of temporal reframing on transaction evaluation. Journal of Consumer Research, 24(4), 395–403. Gourville, J. T., & Soman, D. (1998). Payment depreciation: The behavioral effects of temporally separating payments from consumption. Journal of Consumer Research, 25(2), 160–174. Roth, S., Robbert, T., & Straus, L. (2015). On the sunk-cost effect in economic decision-making: A meta-analytic review. Business Research, 8(1), 99–138.

His book Influence sold 5 million times.  He’s known as the Godfather of Influence.  He’s arguably the best-known behavioural science practitioner.  And he’s finally (after years of pestering) joining me on Nudge.  Ladies and gentlemen, today I present:  Robert Cialdini and the persuasion principles that EVERYONE should memorise. ---  Cialdini’s Influence Unleashed Event: https://cialdini.com/decevent Unlock the Nudge Vaults: https://www.nudgepodcast.com/vaults Read Cialdini’s bestseller Influence: https://amzn.to/4prHb7Y Read the new and expanded Influence: https://amzn.to/43TY0jI Read Pre-Suasion: https://amzn.to/48hA6Qr  Read Yes! (Containing 60 Psyc-Marketing Tips): https://amzn.to/48ddNNf  Join 10,142 readers of my newsletter: https://www.nudgepodcast.com/mailing-list  Connect on LinkedIn: https://www.linkedin.com/in/phill-agnew/  ---  Today’s sources: Agnew, P. (Host). (2021, November 22). #69: Reciprocity | How one nudge saved 246,184 lives [Audio podcast episode]. In Nudge – Marketing Science Simplified. YouTube. https://youtu.be/0QxcahCnoCs Cialdini, R. B. (1984). Influence: The psychology of persuasion. HarperCollins. Cialdini, R. B., Cacioppo, J. T., Bassett, R., & Miller, J. A. (1978). Low-ball procedure for producing compliance: Commitment then cost. Journal of Personality and Social Psychology, 36(5), 463–476. Deutsch, M., & Gerard, H. B. (1955). A study of normative and informational social influences upon individual judgment. The Journal of Abnormal and Social Psychology, 51(3), 629–636. Friedman, H. H., & Rahman, A. (2011). The effect of a gift-upon-entry on sales: Reciprocity in a retailing context. International Journal of Business and Social Science, 2(15), 155–162. Regan, D. T. (1971). Effects of a favor and liking on compliance. Journal of Experimental Social Psychology, 7(6), 627–639.

It’s the most popular cocktail in America.  But prior to 2015, almost nobody had heard of it.  So, how did Aperol Spritz become the world’s drink of choice?  By leveraging a well-known behavioural bias in a totally unique way.  Join Richard Shotton as he explains why suddenly everyone started drinking Aperol Spritz.  ---  Check out the Nudge Vaults: https://www.nudgepodcast.com/vaults Read Hacking The Human Mind: https://a.co/d/fEW7amQ Sign up for my newsletter: https://www.nudgepodcast.com/mailing-list Connect on LinkedIn: https://www.linkedin.com/in/phill-agnew-22213187/ Watch Nudge on YouTube: https://www.youtube.com/@nudgepodcast/  ---  Today’s sources:  Hallsworth, M., List, J. A., Metcalfe, R. D., & Vlaev, I. (2017). The behavioralist as tax collector: Using natural field experiments to enhance tax compliance. Journal of Public Economics, 148, 14–31. Keizer, K., Lindenberg, S., & Steg, L. (2008). The spreading of disorder. Science, 322(5908), 1681–1685. Milne, S., Orbell, S., & Sheeran, P. (2002). Combining motivational and volitional interventions to promote exercise participation: Protection motivation theory and implementation intentions. British Journal of Health Psychology, 7(2), 163–184. von Restorff, H. (1933). Über die Wirkung von Bereichsbildungen im Spurenfeld. Psychologische Forschung, 18(1), 299–342.

My guest on today’s episode of Nudge has spent decades studying leaders.  I asked Prof. Adam Galinsky to share his top five (evidence-backed) leadership tips.  Want to become a better leader?  This is the episode for you.  ---  Watch the bonus episode: https://nudge.kit.com/a53ff22931  Read Adam’s book: https://amzn.to/4htZCGc Sign up for my newsletter: https://www.nudgepodcast.com/mailing-list Connect on LinkedIn: https://www.linkedin.com/in/phill-agnew-22213187/ Watch Nudge on YouTube: https://www.youtube.com/@nudgepodcast/ --- Blunden, H., Kristal, A. S., Whillans, A. V., Yoon, J., Burd, K., Bremner, S., & Yeomans, M. (2025). Eliciting advice instead of feedback improves developmental input. Organizational Behavior and Human Decision Processes, 193, 104343. Chou, E. Y., Halevy, N., Galinsky, A. D., & Murnighan, J. K. (2017). The Goldilocks contract: The synergistic benefits of combining structure and autonomy for persistence, creativity, and cooperation. Journal of Personality and Social Psychology, 113(3), 393–412. Hoff, M., Rucker, D. D., & Galinsky, A. D. (2025). The vicious cycle of status insecurity. Journal of Personality and Social Psychology, 128(1), 101–122. Leonardelli, G. J., Gu, J., McRuer, G., Medvec, V. H., & Galinsky, A. D. (2019). Multiple equivalent simultaneous offers (MESOs) reduce the negotiator dilemma: How a choice of first offers increases economic and relational outcomes. Organizational Behavior and Human Decision Processes, 152, 64–82. Liljenquist, K. A., & Galinsky, A. D. (2007). Turn your adversary into your advocate: Strategic requests for advice can transform disputes into amiable problem-solving ventures. Kellogg Insight. Northwestern University. Majer, J. M., Trötschel, R., Galinsky, A. D., & Loschelder, D. D. (2020). Open to offers, but resisting requests: How the framing of anchors affects motivation and negotiated outcomes. Journal of Personality and Social Psychology, 119(3), 582–599. Wu, S. J., & Paluck, E. L. (2022). Having a voice in your group: Increasing productivity through group participation. Behavioural Public Policy, 9(1), 192–211.

In 1989, The Simpsons released Itchy & Scratchy & Marge.  It’s a classic Simpson’s episode filled with slapstick humour, dry jokes, and smart gags.  And yet, behind all the humour, there’s an important lesson about leadership.  Today, Chief Behavioural Scientist Micheal Hallsworth explains what Marge Simpson can teach you about leadership.   ---  Read the Hypocrisy Trap: https://amzn.to/47vhxbj⁠ Sign up for my newsletter: https://www.nudgepodcast.com/mailing-list  Connect on LinkedIn: https://www.linkedin.com/in/phill-agnew-22213187/  Watch Nudge on YouTube: https://www.youtube.com/@nudgepodcast/  ---  Today’s sources:  Barrick, E. M., Barasch, A., & Tamir, D. I. (2022). The unexpected social consequences of diverting attention to our phones. Journal of Experimental Social Psychology, 101, Article 104344. Jordan, J. J., Sommers, R., Bloom, P., & Rand, D. G. (2017). Why do we hate hypocrites? Evidence for a theory of false signaling. Psychological Science. Thomas, O., & Reimann, O. (2023). The bias blind spot among HR employees in hiring decisions. German Journal of Human Resource Management, 37(1), 5–22. Tokunaga, R. S. (2010). Following you home from school: A critical review and synthesis of research on cyberbullying victimization. Computers in Human Behavior, 26(3), 277–287

Are inspiring leaders born or are they made?  That’s what Adam Galinsky, the Columbia Business School professor, has spent the past two decades studying inspiring leaders.  On today’s episode of Nudge, he shares his groundbreaking research into inspiration, reciprocity, repetition and visionary statements that reshaped how I saw leadership.  ---  Read Adam’s book: https://amzn.to/4htZCGc⁠ Sign up for my newsletter: https://www.nudgepodcast.com/mailing-list Connect on LinkedIn: https://www.linkedin.com/in/phill-agnew-22213187/ Watch Nudge on YouTube: https://www.youtube.com/@nudgepodcast/ --- Today’s sources:  Begg, I. (1972). Recall of meaningful phrases. Journal of Verbal Learning and Verbal Behavior, 11(4), 431–439. Cabinet Office & Behavioural Insights Team. (2013, May 28). Applying behavioural insights to charitable giving. Behavioural Insights Team. https://www.gov.uk/government/publications/applying-behavioural-insights-to-charitable-giving Carton, A. M., Murphy, C., & Clark, J. R. (2014). A (blurry) vision of the future: How leader rhetoric about ultimate goals influences performance. Academy of Management Journal, 57(6), 1544–1570. Cialdini, R. B. (1984). Influence: The psychology of persuasion. William Morrow & Company. Liu, J., Hong, X., Zheng, Z., & Zhong, J. (2023). When consumers have difficulty understanding ads: How technical language lowers purchase intention. Journal of Consumer Behaviour, 22(6), 1550–1563.

Britain’s most popular pint has a major flaw.  It takes 2 minutes to pour.  This should put people off. Most of us don’t love waiting at the bar.  And yet, despite this flaw, one in every nine British pints sold is Guinness.  Why?  Well, today’s guest, behavioural scientist Richard Shotton, says it’s down to some evidence-backed consumer psychology.  ---  Read Hacking The Human Mind: https://amzn.to/47lpcbT Sign up for my newsletter: https://www.nudgepodcast.com/mailing-list Connect on LinkedIn: https://www.linkedin.com/in/phill-agnew-22213187/ Watch Nudge on YouTube: https://www.youtube.com/@nudgepodcast/  --- Today’s sources Aronson, E., Willerman, B., & Floyd, J. (1966). The effect of a pratfall on increasing interpersonal attractiveness. Psychonomic Science, 4(6), 227–228. Bohner, G., Einwiller, S., Erb, H.-P., & Siebler, F. (2003). When small means comfortable: Relations between product attributes in two-sided advertising. Journal of Consumer Psychology, 13(4), 454–463. Kruger, J., Wirtz, D., Van Boven, L., & Altermatt, T. W. (2004). The effort heuristic. Journal of Experimental Social Psychology, 40(1), 91–98. Williams, K. D., Bourgeois, M. J., & Croyle, R. T. (1993). The effects of stealing thunder in criminal and civil trials. Law and Human Behavior, 17(6), 597–609

Five Guys was the fastest-growing fast food chain in the world.  And that’s partly due to one clever bit of menu psychology.  Today on Nudge, Richard Shotton explains:  - The psychology behind the Five Guys menu  - How Kraft made a healthier Mac & Cheese (without losing customers)  - Why 99% of marketers would have ruined Pumpkin Spice Latte ---  Read Hacking The Human Mind: https://amzn.to/47lpcbT Sign up for my newsletter: https://www.nudgepodcast.com/mailing-list Connect on LinkedIn: https://www.linkedin.com/in/phill-agnew-22213187/ Watch Nudge on YouTube: https://www.youtube.com/@nudgepodcast/  --- Today’s sources Lee, L., Frederick, S., & Ariely, D. (2006). Try it, you’ll like it: The influence of expectation, consumption, and revelation on preferences for beer. Psychological Science, 17(12), 1054–1058. Nelson, L. D., & Meyvis, T. (2008). Interrupted consumption: Disrupting adaptation to hedonic experiences. Journal of Marketing Research, 45(6), 654–664. Raghunathan, R., Naylor, R. W., & Hoyer, W. D. (2006). The unhealthy = tasty intuition and its effects on taste inferences, enjoyment, and choice of food products. Journal of Marketing, 70(4), 170–184. Shu, S. B., & Gneezy, A. (2010). Procrastination of enjoyable experiences. Journal of Marketing Research, 47(5), 933–944. Zhang, Y., Fishbach, A., & Kruglanski, A. W. (2007). The dilution model: How additional goals undermine the perceived instrumentality of a shared path. Journal of Personality and Social Psychology, 92(3), 389–401.

In 2020, the UK government told its citizens not to meet in groups of more than two.  Despite this rule, the UK government were caught holding lockdown-breaking parties, which involved the Prime Minister.  This ultimately led to Boris Johnson’s resignation in July 2022, but why?  Why did this specific scandal make voters so angry?  Today, with the Chief Behavioural Scientist at the Behavioural Insights Team, Michael Hallsworth, we uncover the psychology behind hypocrisy.  ---  Read the Hypocrisy Trap: https://amzn.to/47vhxbj Sign up for my newsletter: https://www.nudgepodcast.com/mailing-list Connect on LinkedIn: https://www.linkedin.com/in/phill-agnew-22213187/ Watch Nudge on YouTube: https://www.youtube.com/@nudgepodcast/ --- Today’s sources:  Alicke, M., Gordon, E., & Rose, D. (2013). Hypocrisy: What counts? Philosophical Psychology, 26(5), 673–701. Laurent, S. M., & Clark, B. A. (2019). What makes hypocrisy? Folk definitions, attitude/behavior combinations, attitude strength, and private/public distinctions. Basic and Applied Social Psychology, 41(2), 104–121. Powell, C. A. J., & Smith, R. H. (2012). Schadenfreude caused by the exposure of hypocrisy in others. Self and Identity, 12(4), 413–431. Wagner, T., Lutz, R. J., & Weitz, B. A. (2009). Corporate hypocrisy: Overcoming the threat of inconsistent corporate social responsibility perceptions. Journal of Marketing, 73(6), 77–91.

Kipp Bodnar is HubSpot’s CMO. He’s also an AI expert. Today, I interview him about how he uses AI, how he expects marketing teams to change, and his four tips to help you adopt AI in your business. --- The Loop Marketing Playbook: https://clickhubspot.com/45054c Kipp’s podcast: https://www.youtube.com/@MATGpod Sign up for my newsletter: https://www.nudgepodcast.com/mailing-list Connect on LinkedIn: https://www.linkedin.com/in/phill-agnew-22213187/ Watch Nudge on YouTube: https://www.youtube.com/@nudgepodcast/ --- Today’s sources:  HigherVisibility. (2025, February 7). New study from HigherVisibility reveals how search behavior is changing in 2025 [Press release]. Terwiesch, C. (2023). Would ChatGPT Get a Wharton MBA? A prediction based on its performance in the operations management course (White paper, Mack Institute for Innovation Management, The Wharton School). Nightingale, S. J., & Farid, H. (2022). AI-synthesized faces are indistinguishable from real faces and more trustworthy. Proceedings of the National Academy of Sciences, 119(8), e2120481119