54. People are More Motivated by Intrinsic Rewards Than Extrinsic Rewards

Definitions

• Intrinsic- Refers to something belonging naturally. With motivation, it is doing something because you love to not for a reward
• Extrinsic- Refers to something not belonging naturally. With motivation, it is doing something for a reward like fame, praise, or money
• Contingent- Refers to something that happens only if something is done. With motivation, it is a rewards discussed before hand that will be received upon completion of a task
• Algorithmic Work- Refers to when a process is defined and the end product is expected
• Heuristic Work- Refers to when we devise ideas and strategies, experiment and create hypotheses until a solution is found

Point of the Chapter

• People, both kids and adults are more motivated to do something if they receive an intrinsic reward versus an extrinsic reward
• An extrinsic is a one and done reward that really only satisfies someone for a bit
• Once they get it they check it off their list and don't give it a second look
• An intrinsic reward is something you get for yourself
• Once you get it you feel good about yourself and aim to do it again
• They are the most satisfying rewards

1973 Study on Rewards

• In 1973 a study was don on how people would act upon receiving a reward for something.
• It was led by Mark Lepper, David Greene, and Richard Nisbett
• They separated children into three groups.
• Group 1"Expected": was told to draw and they would get a certificate
• Group 2"Unexpected": was told to draw, but not told about the certificate; however, they got one in the end
• Group 3"Control": was told to draw, but not told about the certificate and did not receive a certificate
• Two weeks later they observed that students from the Unexpected and Control group spent more play time drawing than the Expected group, when provided with materials

Money and Dopamine

• Money stimulates the necleus accumbens
• This is the part of the brain that is stimulated when people anticipate an addictive substance
• It also releases dopamine when you receive money
• This leads to a risky issue that is prevalent in today's society
• People will rely on monetary rewards and will become unwilling to work unless there is a monetary reward

Algorithmic vs. Heuristic

• Until recently people did algorithmic work
• They followed a procedure to accomplish a task
• Now at least 70% of people in developing countries do Heuristic work
• They do not have a set of procedures
• This leads to issues because traditional punishments and rewards do not work like they do with algorithmic work

Take-Aways

• Don't assume that money or any other extrinsic reward is the best way to reward people
• Look for intrinsic rewards
• If you are going to give an extrinsic reward it will be more motivating if it was unexpected
• If the product you are design allows people to connect with other people then they will be motivated to use it

Resources

• Here is an article that goes deeper into Intrinsic and Extrinsic Motivation
• Differences of Extrinsic and Intrinsic Motivation
• Here is a video on it as well
• https://www.youtube.com/watch?v=dyr7wg9s7gM