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This week, Baba Shiv and I taught a class at the Stanford Graduate School of Business called, “Using Neuroscience to Influence Human Behavior.” The course focused on the science behind how consumers make decisions.

During the class, we walked through my Hooked Model, a four-step cycle that creates preferences and usage habits. Readers of my blog will be familiar with the Hooked Model but I wanted to share some slides regarding one particular part of the Hooked Model, the “investment phase”.

The investment phase involves customers doing a bit of “work”, which commits them to the usage of the product. Investment makes re-engaging with the product more likely, and with the slides below, I try to explain why.

Slides from the Investment Phase discussion are below and I apologize for not having a voiceover to go with them yet. I’ll be writing more on the investment phase in the coming weeks but wanted to share some of the research into the topic.

Also, more slides from the class are available on my Scribd page here.

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