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