89. Focusing Illusion: Why Thinking About Something Makes It Seem More Important Than It Is (A Behavioral Economics Foundations Episode)

<p><span style="font-weight: 400;">In a previous episode, I talked about a study on happiness which found that when asked if people thought they would be happier if they were to suddenly be a paraplegic or suddenly win the lottery, most everyone believes they would be happier winning the lottery and significantly less so to lose the use of their limbs.</span></p> <p><span style="font-weight: 400;">In actuality, these two groups of people – paraplegics and lottery winners, are essentially just as happy as anyone else.</span></p> <p><span style="font-weight: 400;">Why would this be and why would people predict it incorrectly? It has everything to do with the focusing illusion. When people only focus on one piece of a giant puzzle that piece ends up with far too much weight. Losing the use of your legs or winning the lottery is just one small piece of an entire life. There are so many factors that play into happiness, and while these pieces are significant and impactful in many ways, they don’t tend to have an impact on overall happiness like we think they would.</span></p> <p><span style="font-weight: 400;">This episode is all about the focusing effect and how these principles can be used in your business and your life. I talk about focusing on that one thing and making it incredibly clear to your target market. I also talk about asking yourself what people should focus on when thinking about your brand and what would motivate your ideal customer to take action.</span></p> <p><strong>Show Notes:</strong></p> <ul> <li style="font-weight: 400;"><span style= "font-weight: 400;">[04:44] A study about happiness that illustrates the focusing illusion.</span></li> <li style="font-weight: 400;"><span style= "font-weight: 400;">[05:47] Kahneman did a test back in 1998 to find out if Californians or Midwesterners were happier with their lives.</span></li> <li style="font-weight: 400;"><span style= "font-weight: 400;">[06:24] If you said Californians, you would be wrong. A focusing illusion bias puts more weight on things lik