Why Ballers Go Broke: Isn't $100M Enough to Be Set For Life? Apparently, Not For Some!

Browsing my old copies of Bloomberg Businessweek that had been piling up before the holiday break, I came across an interesting article by Paul Wachter entitled "Why Ballers Go Bust" (here's the online version). It centered on a question that I often wondered myself...how much is enough money to set you free...free to do what you want, work on what you want, break out of the hierarchy, tell people to kiss your butt? Well apparently, $100M+ is not enough...it seems that if you don't have what psychologists call self-regulatory capacity and if you don't have experience with the devastating curse of debt, then even hundreds of millions of dollars can't ensure that you will stay out of lawsuits, bankruptcy, and moving back in with your parents. Scottie Pippen earned and lost $120M, Evander Holyfield blew $200M..., and it wasn't just African American athletes who were susceptible. Lenny Dykstra "sold his World Series ring to pay creditors" and Mark Brunell lost millions in the real estate crash. Sports Illustrated puts the number at 60% of NBA players who are in financial problems 5 years after they retire.

It is surprising to me that millions of dollars are not enough to live independently...do you know how much 5% interest on $1M earns annually, and that doesn't even begin to add in the benefit of compounding...but I guess the adage of "it's all relative" and "money can't buy you love" may be true after all!

I dream of retirement, when my time will truly be my own and money will cease to be a concern but maybe the dream is a mirage...but I haven't given up looking for that ideal number of dollars that will buy me my dream day (e.g., wake up, write in my pajamas cup of java in hand, take my kids skiing, skating, traveling, dinner (preferably out) with my husband, sleep), everyday for the rest of my life...

Substance Abuse Treatment Admission Rates Increase Across U.S.

Substance Abuse Treatment Admission Rates Increase Across U.S.

Gene Variant Puts You At Risk for Alzheimer's

MRI scans reveal brain changes in people at genetic risk for Alzheimer's

ScienceDaily (2010-12-30) -- People with a known, high risk for Alzheimer's disease develop abnormal brain function even before the appearance of telltale, amyloid plaques that are characteristic of Alzheimer's disease, according to a new study. The findings suggest that a gene variant affects brain function long before the brain begins accumulating the amyloid that will eventually lead to dementia. ... > read full article

Sniff Test for Dementia

As hard as it is to tell if you or someone you care about is developing or at risk for developing dementia or Alzheimer's, I always worry if my own absent-minded professor habits like forgetting my train of thought means that I am at risk for eventually developing such a disabling disease. After all, my grandfather and both my grandmothers died from Alzheimer's and my mother is currently battling early onset dementia at the age of 65. Interestingly, there is a simple test that I used on my own mom to test her a year ago when she became worried that she wasn't feeling quite normal.

A sniff test.

It turns out that the beta-amyloid plaques that Will eventually end up destroying brain cells throughout the brain seem to attack the brain areas involved in smell first. So the inability to identify common kitchen smells like coffee, cinnamon, lemon, and menthol (like from chest rub...) may indicate that dementia is likely in the future. This was from a study presented at the annual meeting of the American College of Neuropsychopharmacology. My mom didn't do spectacularly well on that test and our neuropsychologist a few months later confirmed with MRI scans what we already suspected. She had Alzheimer's - most likely a particular type called Alzheimer's with Lewy Bodies which has some similarities with Parkinson's disease in that it affects gait, posture and body control. A great paper from Johns Hopkins details more interesting insight on Alzheimer's detection!

I Can Beat That! - Putting A Human Face on Risk Changes Perception

Why do risks with human characteristics make powerful consumers feel lucky?

ScienceDaily (2010-12-23) -- People who feel powerful are more likely to believe they can beat cancer if it's described in human terms, according to new study. ... > read full article

Understanding Impulse Control...Depends on Who You Are

Unlocking the secrets of our compulsions

ScienceDaily (2010-12-20) -- Researchers have shed new light on dopamine's role in the brain's reward system, which could provide insight into impulse control problems associated with addiction and a number of psychiatric disorders. ... > read full article

Amygdala Size Key to How Social You Are

Structure deep within the brain may contribute to a rich, varied social life

ScienceDaily (2010-12-26) -- Scientists have discovered that the amygdala, a small almond shaped structure deep within the temporal lobe, is important to a rich and varied social life among humans. ... > read full article

Instinct in the Brain

Part of brain that suppresses instinct identified

ScienceDaily (2010-12-26) -- New research is revealing which regions in the brain fire up when we suppress an automatic behavior such as the urge to look at other people in an elevator. Researchers showed -- for the first time -- an increase in signal from the left inferior frontal cortex when study participants were confronted by a conflict between an image and a word superimposed on the image. ... > read full article

A Few Key Consumer Trends to Watch for 2011...

An article today in the Globe & Mail Report on Business Section listed some consumer trends to watch in 2011...A few of them I thought were especially interesting:

1. Urbanization: Every day 180,000 people move into cities around the world (I am a life long urbanite who only fantasizes about living off grid in the country)! People who live in cities tend to be more liberal (check), more likely to try out new products (check), and more tolerant (double check).

2. Owner-less society: Sorry Pres. Bush but the ownership society was a lousy, short-sighted idea that has thankfully gone by the wayside. Turns out that more and more consumers are happy to rent and/or share products, real estate, cars. Owning, especially when debt is required, is too onerous and burdensome as many of us have found! It has definitely been a trap for the baby-boomer generation - my parents dreamed of getting a credit card when they were broke and in their 20s and they are suffering under a mountain of consumer debt now that they are retired and in their 60s - me and my husband have previously felt the agony of a mortgage, 4 car leases, student loans, and business loans and have sworn ourselves to a life without debt - renting and sharing is the new way to consume that may finally work well for consumers!

3. Pursue big ideas! I like that! But how do you know your idea is big...I'm still working on that!

Ads Work Better If All Senses Are Involved

Taste Sensation: Ads Work Better If All Senses Are Involved

ScienceDaily (2009-07-22) -- Corporations spend billions of dollars each year on food advertising. For example, Kraft Foods, PepsiCo, and McDonald's each spent more than $1 billion in advertising in 2007. A new study suggests those advertisers are missing out if their ads only mention taste and ignore our other senses. ... > read full article

The Taste Gene -- Psychobiologists Find Genetic Component in Children's Food Preference

ScienceDaily () -- In the first study to link taste genes to behavior in children, researchers looked at how natural variations in a recently discovered taste gene affected sensitivity to bitter tastes and food preferences in a group of children and adults. Collecting genetic samples from 143 children and their mothers, the researchers showed moms and kids who had at least one bitter-sensitive region in the gene were generally able to detect even a hint of bitter flavor in a test drink. The same group of children, carrying one or two bitter-sensitive regions of a gene, also preferred higher concentrations of sucrose solutions and had stronger preferences for sweet-tasting food and beverages than did the bitter-insensitive kids.

Liberals and Conservatives Don't See Eyes The Same

Politics and eye movement: Liberals focus their attention on 'gaze cues' much differently than conservatives do

ScienceDaily (2010-12-09) -- It goes without saying that conservatives and liberals don't see the world in the same way. Now, research suggests that is exactly -- and quite literally -- the case. In a new study, researchers measured both liberals' and conservatives' reaction to "gaze cues" -- a person's tendency to shift attention in a direction consistent with another person's eye movements. Liberals responded strongly to the prompts, consistently moving their attention in the direction suggested to them by a face on a computer screen. Conservatives, on the other hand, did not. ... > read full article

Princess Stories: Do girls (and boys) need new tales?

Today Globe and Mail ran a story on Disney's princess franchise, which I was interviewed for. It brought up an interesting dilemma that Disney is facing: how do they continue to exploit the princess myth which my daughter and millions of girls around the world absolutely relish, while keeping up with the changing ethos of girls and women and challenging the criticism that neo-femininists lobe on whether these models should be marketed at all! Having both a son and a daughter I not only question the values promoted in princess stories but also the ones permeating boy coming of age stories too! Is it time for a completely new set of myths and archetypes for new generations of children who need better tools to help them survive in the future. Instead of "the knight in shining armor will save you from evil" how about "self-control over the impulses that can drive bad choices is the key to triumph." Instead of "kill or be killed" how about "avoid being one of the crowd; find what makes you special in what makes you so different and you will go beyond the crowd." The Grimm fairytales were written over 100 years ago...time for new tales to be written?

Aging is More Than Wrinkles...Your Jawline Actually Shifts!

Facial aging is more than skin deep

ScienceDaily (2010-04-19) -- Facelifts and other wrinkle-reducing procedures have long been sought by people wanting to ward off the signs of aging, but new research suggests that it takes more than tightening loose skin to restore a youthful look. A new study indicates that significant changes in facial bones -- particularly the jaw bone -- occur as people age and contribute to an aging appearance. ... > read full article

Torturing Shoppers with Chicken Wire: How Retailers Uses Data to Increase Impulsive Buying

Did you know that the first supermarket was the King Piggly Wiggly in Memphis, TN used chicken wire to herd shoppers through all the aisles in order to be sure that they saw every item in the store. This little tidbit fact I discovered this morning reading my Globe and Mail newspaper. The article written by Michael Kesterton went on to report that stores like Walmart use data collected on consumers via scanner registers, radio frequency tagging, etc. to manipulate the retail environment in order to maximize consumer sales especially impulse purchases. My mother who worked in sales for Estee Lauder for 35 years talked about how they would use flashing lights, blaring music, distracting displays (full of flowers, banners, people, colors, etc.)to bewilder and overstimulate consumers. All of this works in my opinion because of what cognitive resource depletion theory states is our limited ability to resist distraction and temptation and the rampant impulsivity and risky behavior that follows depletion. Ever wonder why you feel sooo exhausted and traumatized when shopping in the monster box stores (especially exacerbated when small kids are in tow)? The previously mentioned large retailer allegedly has a database of behavioral information that is 2nd only to the Pentagon...amazing! People don't need to fear government...large corporations are scarier! The retail experience needs innovation and renovation...the consumer should be helped not harangued!

Addictions 2010 Conference in DC

This weekend I am making the long road trip (I got unceremoniously bumped from Delta flight) down to Arlington, VA for the Addictions 2010 Conference. This conference is focused on bridging research and public policy in treating and diagnosing addiction. To me this is an extremely important issue. The speaker list is great: H.W. Clark, U.S. Department of Health and Human Services, R. Morrison, National Association of State Alcohol & Drug Abuse Directors,H. Perl, National Institute of Drug Abuse and many academics doing work in this area! I will probably be the only consumer behavior researcher there...alas! Should be an eye opening weekend!

What Drives Hoarding Consumption? - Is It At Epidemic Levels?!

Every day I receive email alerts of news reports of extreme and dire cases of hoarding behavior. Animal hoarding is one form and maybe one of the more tragic since it impairs and debilitates both the human owner and the animals hoarded. But there are types of products hoarded and the problem is claimed to be at epidemic levels either because the public is only now being made aware of the problem lurking behind many barricaded and seemingly normal doorfronts or because there may be some underlying percipitating factor in modern society that is triggering the compulsive consumption behavior. My belief is that as a comsumer behavior researcher, this is one type of consumer behavior that demands much more research!!

The Biological Basis of Business Behavior

A recent article in the Economist discusses research that combines biology, psychology, endocrinology, and genetics to better understand business behavior such as risk perception, trust, and innovation. A colleague at Ivey, Rod White, for example published a paper with co-authors Stewart Thornhill and Elizabeth Hampson which found that men with higher levels of salival testosterone were more likely to be entrepreneurs. A really important area where this type of research could be applied is ethical behavior (see my recent blog post on the neural differences of psychopaths from the general population and possible links to management behavior), leadership and consumer innovators or trend leaders.

Looking for Experimental Stimuli: Use Images from Wikimedia Commons

I use tons (I mean thousands+) of images and ads as stimuli in my consumer behavior experiments. For the most part I spend a lot of time wading through stacks of old magazines that I collect in my office, ripping out ads and scanning them in for potential manipulation in Photoshop (by my helpful and talented technologist husband!!). This of course takes a lot of time!!

A good colleague of mine at Stanford directed me to a great resource for images that are royalty free at Wikimedia Commons. This is a great place to get an image of a brain, a camera or a smiling face...everything a researcher could want!! Thanks to those who allow their images to be used without the expectation of compensation!!

Image Source: Jal2001, Wikimedia Commons

Consumer Debt Sinking Seniors

I find it ironic that my parents' generation, the one who railed against the "establishment" and scoffed at their parents' frugality and conservatism, are now the ones suffering so terribly under the weight of extreme debt. An article today in USA Today states that older consumers have 50% more debt than younger ones and over 2/3 of older consumers who have filed for bankruptcy say that credit card debt was the major problem. It has been reported that most people file bankruptcy because of medical debt, but I don't think that is entirely true. I think the rampant, largely unregulated marketing of debt products, including credit cards, reverse mortgages (WTF is that good for????), student loans and other completely usesless manipulations of the financial industry have duped the older generation who during their young adulthood didn't spend a lot of time working on their self-control skills (just put the LSD down!). Now the pain of overconsumption is settling in on people who should be in their golden years...how do we help consumers who lack the ability (for whatever reason - e.g., does heavy partying and drug use during your younger years contribute to the inability to control compulsive behavior later in life? A research question for sure!!) to self-regulate and control compulsive behavior?

Image Credit: Lotus Head from Johannesburg, Gauteng, South Africa