Determining the highest probability of success based on our core knowledge of human behavior

CORE Strategic Consulting for Forward Thinkers

ProblemIdea or Intuition

Gut Instinct: Products are often created as a result of a guess about human behavior !“I love this product, I think other people will too” !“There is definitely a need for this product, so many people experience this problem” !“That product works for that market, this similar one will work for this similar market”

ProblemIdea or Intuition Product

Gut Instinct: Products are often created as a result of a guess about human behavior “I love this product, I think other people will too” !“There is definitely a need for this product, so many people experience this problem” !“That product works for that market, this similar one will work for this similar market”

The product must first be created to generate data about how it is being used !Data allows us to asses how accurate our guess is. Pre-existing data about the market or similar products may help guide our guess. Software has a strategic advantage, as it provides a multitude of ways to collect data and iterate quickly.

ProblemIdea or Intuition Product Data

Data tells you what people do, not WHY they do it !Data is generated as the result of human behavior. It is then assessed and new guesses are made about how to improve products to continue the cycle until the desired behavior is achieved. !This cycle is analogous to throwing darts at a dartboard blindfolded and adjusting our aim based on spectator feedback

Gut Instinct: Products are often created as a result of a guess about human behavior “I love this product, I think other people will too” !“There is definitely a need for this product, so many people experience this problem” !“That product works for that market, this similar one will work for this similar market”

The product must first be created to generate data about how it is being used !Data allows us to asses how accurate our guess is. Pre-existing data about the market or similar products may help guide our guess. Software has a strategic advantage, as it provides a multitude of ways to collect data and iterate quickly.

ProblemIdea or Intuition Product Data

Gut Instinct: Products are often created as a result of a guess about human behavior !“I love this product, I think other people will too” !“There is definitely a need for this product, so many people experience this problem” !“That product works for that market, this similar one will work for this similar market”

The product must first be created to generate data about how it is being used !Data allows us to asses how accurate our guess is. Pre-existing data about the market or similar products may help guide our guess. Software has a strategic advantage, as it provides a multitude of ways to collect data and iterate quickly.

Data tells you what people do, not WHY they do it !Data is generated as the result of human behavior. It is then assessed and new guesses are made about how to improve products to continue the cycle until the desired behavior is achieved.

This cycle is analogous to throwing darts at a dartboard blindfolded and adjusting our

aim based on spectator feedback

SolutionStart with First Principles: Behavioral Science !Can I determine WHY people perform certain behaviors and use this to my advantage in the Product Creation Cycle? YES! Behavioral scientists have generated enormous amounts of data and applicable theory - USE it to remove the blindfold! !

SolutionStart with First Principles: Behavioral Science !Can I determine WHY people perform certain behaviors and use this to my advantage in the Product Creation Cycle? YES! Behavioral scientists have generated enormous amounts of data and applicable theory - USE it to remove the blindfold! !

“Human behavior and culture is the product of complex, evolved psychological mechanisms. These information-processing mechanisms comprise the human mind and help to explain the connection between evolutionary biology and the complex, irreducible social and cultural phenomena studied by anthropologists, sociologists, economists, and historians. There is a universal human nature, and this universality primarily exists at the level of evolved psychological mechanisms. These evolved psychological mechanisms are adaptations, constructed by natural selection over evolutionary time. Finally, the evolved structure of the human mind is adapted to the way of life of Pleistocene hunter-gatherers, not necessarily to our modern circumstances.” – Dr. John Tooby

SolutionStart with First Principles: Behavioral Science !

Goal: Use what we already know about human behavior to provide the right product to the right audience.

Can I determine WHY people perform certain behaviors and use this to my advantage in the Product Creation Cycle? YES! Behavioral scientists have generated enormous amounts of data and applicable theory - USE it to remove the blindfold! !

“Human behavior and culture is the product of complex, evolved psychological mechanisms. These information-processing mechanisms comprise the human mind and help to explain the connection between evolutionary biology and the complex, irreducible social and cultural phenomena studied by anthropologists, sociologists, economists, and historians. There is a universal human nature, and this universality primarily exists at the level of evolved psychological mechanisms. These evolved psychological mechanisms are adaptations, constructed by natural selection over evolutionary time. Finally, the evolved structure of the human mind is adapted to the way of life of Pleistocene hunter-gatherers, not necessarily to our modern circumstances.” – Dr. John Tooby

Our ApproachIdea or Intuition

Theory Data

Experiment

Behavioral ScienceIncorporate, at each step in the process, the Theory and Data that we already have about WHY people do the things they do !1.Filter our Intuition/Ideas to determine how to create products that are closer to or initial target

2.Structure our data generation and testing in ways that are more meaningful

3.Analyze the information we gather about our product through a frame that helps us answer the WHY more accurately !Each cycle of this process incurs significant cost: financial capital, energy, and time. Using behavioral science not only allows us to reduce iterations and more efficiently achieve the desired behavior, but allows to optimize for benefit through creating better, more targeted, more monetizable products. !!

Our ApproachIdea or Intuition Product1

Theory Data

Behavioral ScienceIncorporate, at each step in the process, the Theory and Data that we already have about WHY people do the things they do: !1. Filter our Intuition/Ideas to determine how to create

products that are closer to our initial target 2.Structure our data generation and testing in ways that are more meaningful

3.Analyze the information we gather about our product through a frame that helps us answer the WHY more accurately !Each cycle of this process incurs significant cost: financial capital, energy, and time. Using behavioral science not only allows us to reduce iterations and more efficiently achieve the desired behavior, but allows to optimize for benefit through creating better, more targeted, more monetizable products. !!

Experiment

Our ApproachIdea or Intuition Product Data1 2

Theory Data

Behavioral ScienceIncorporate, at each step in the process, the Theory and Data that we already have about WHY people do the things they do: !1. Filter our Intuition/Ideas to determine how to create products

that are closer to our initial target 2. Structure our data generation and testing in ways that are

more meaningful 3.Analyze the information we gather about our product through a frame that helps us answer the WHY more accurately !Each cycle of this process incurs significant cost: financial capital, energy, and time. Using behavioral science not only allows us to reduce iterations and more efficiently achieve the desired behavior, but allows to optimize for benefit through creating better, more targeted, more monetizable products. !!

Experiment

Our ApproachIdea or Intuition Product Data1 2

3

Theory Data

Behavioral ScienceIncorporate, at each step in the process, the Theory and Data that we already have about WHY people do the things they do: !1. Filter our Intuition/Ideas to determine how to create products

that are closer to our initial target 2. Structure our data generation and testing in ways that are more

meaningful 3. Analyze the information we gather about our product

through a frame that helps us answer the WHY more accurately

!Each cycle of this process incurs significant cost: financial capital, energy, and time. Using behavioral science not only allows us to reduce iterations and more efficiently achieve the desired behavior, but allows to optimize for benefit through creating better, more targeted, more monetizable products. !

Experiment

Our ApproachIdea or Intuition Product Data1 2

3

Theory Data

Behavioral Science More specifically, one strategy for how we will use behavioral science is to understand the mechanics of experience and how we can use those mechanics to target the correct audience in order to achieve maximal probability of success. !!!

!!Each cycle of this process incurs significant cost: financial capital, energy, and time. Using behavioral science not only allows us to reduce iterations and more efficiently achieve the desired behavior, but allows to optimize for benefit through creating better, more targeted, more monetizable products.

Experiment

Mechanics of Experience

Dynamic Cycle of Experience

Subject

StimuliStructure

Our experience of reality can be organized into the combination of three distinct but collaborative entities. 1) The Subject: The individual experiencing a stimuli in a set structure. The subject has its own set of

limiting factors including its attention, arousal, emotional state and conscious decision making ability. 2) The Stimuli: The actual stimuli that the subject is experiencing. for example a piece of music (auditory),

an app (visual/spatial), or an item of clothing (somatosensory-visual). Stimuli will interact with a subjects sensory organs and neuro-mechanics in multiple combinations.

3) The Structure: The environment, wether social, physical or societal in which the subject has learned how to experience a particular stimuli from outside sources outside of his/her own experimentation.

Neuro-Economics And Product Positioning

Unfamiliar Zone

Familiar Zone

The Experimental Zone™Weird

Cliche’

A Model of Reward

The Experimental Zone™ is the leading perceptual model of reward that incorporates Attention/Arousal, Emotion, Repetition, Expectation/Anticipation, Memory/Learning, Reward, Decision and their associative brain areas and networks. Put simply: there is a space in time for each mind that is the perfect blend of what is old and what is new, where the individual or group is willing to experiment for a rewarding experience. This theory is a working model of both individual and mass reward which underlies consumer and market behavior.

Crowd Dynamics and Market Applications

Unfamiliar Zone

Familiar Zone

The Experimental Zone™Weird

Cliche’

A Model For Reward Dynamic Cycle of Experience

Subject

Stimuli

Populations are made of individuals. Individual consumer experience is often shared amongst masses. Based off of the understanding and database of experience and reward we can craft solutions and applications that can help us make the most informed decisions about product, marketing and distribution to target populations in the following ways: 1. Individual and population reward system identification 2. Product and brand shaping and longevity 3. Warm vs cold market behavior analysis 4. Product-population matching 5. Target audience mapping 6. Probability scenarios for critical mass perceptual reach 7. Trend identification and creation

Structure

Applications:

Individual Individual

Individual IndividualPopulation

Crowd Dynamics

Maximized Probability for Success

Product and Brand Identity/Keywords Associated Warm Market Populations

Warm Exposure Intersections Warm Market Overlaps

Warmest Target Audience Highest Probable Customer Conversion

The Core Approach :: Highest Probability for Success

TeamNathan Lomeli, Stanford University: Since graduating with a BA in Economics in 2009, Nathan has applied his knowledge of human behavior to education. He has worked on data analytics for a San Francisco-based education technology startup, incorporating econometric models in the analysis of user behavior. He has also applied research into psychometrics to the construction and analysis of standardized tests used in public schools, research into cognitive psychology to curriculum development and educational content design, and research into evolutionary and developmental psychology to school organizational policy and charter application writing. Nathan’s passion and interests lie in understanding the innate drives that all humans share, particularly in regard to how we interact with and process information, and using that understudying to create marketplace efficiency.

!Stephen Henderson, Stanford University: Stevie’s passion for music and the brain has motivated extensive research and consulting experience both academically and professionally. He graduated in 2011 with a BA in Music with honors research in Music Cognition and completed a MA in 2012 in Music, Science and Technology at the Center for Computer Research in Music and Acoustics where he was awarded the Carolyn Applebaum Award for excellence in Entrepreneurial Endeavors and Community Service. Stephen developed interdisciplinary research methods to study the neuro-mechanics of sacred experience with music in his Honors Thesis “The Sound of Sacred” and used those methods as the base for the perceptual theory he developed in early 2013 for the neuro-mechanics of reward known as The Experimental Zone™. Stephen is a creative solutionist and has worked as a viral marketing strategist for a multi-million dollar label in LA, lectured at the University of Hawaii Maui College and Stanford University in the realms of Music, Cognition, Technology, and Marketing Strategy. He also is a professional recording artist, music producer, songwriter & music business consultant and has worked with numerous independent labels in the US and Canada as well as many multi-grammy award winning producers and songwriters in Los Angeles, San Diego, Honolulu, Salt Lake City and San Francisco over the last year.

!Daniel Corsaro, Stanford University: Daniel graduated in 2008 with a BS in Management Science and Engineering and has spent his career successfully bridging the challenging gap between business/consumer needs and their associated technological solutions. Daniel has extensive start-up experience, most recently founding and successfully exiting mobile application company Appiphany. He worked worked with technical teams to create software solutions that provided invaluable insight and direction to the company’s leadership at Fortune 15 McKesson’s most profitable business unit. He brings financial, operational, and practical business understanding to the group and has a proven ability to lead collaborative problem solving and product teams. His passion for creating elegant, efficient technological solutions to practical problems underscores his interest in the application of behavioral science to product creation and positioning.