Friday, 2 February 2018

Book review- What Best College Teachers Do

Book Review:
I generally don't do book reviews (not because i don't like, but due to lack of time).
Due to academic necessity, I had to write this. Instead of slipping it into oblivion, I'm posting it here. So here goes)

TL DR: "This is an awesome book", is what i'm trying to say

Ken Bain, "What Best College Teachers Do", Harvard University Press, 2004, 224 pp.

Introduction 

I believe they are broadly two kinds of books. One which you read out of compulsion and the ones you read because you really love the book. This book started off in the first category but very quickly shifted to the second. This book achieves a rare mix of philosophical sermons and practical steps useful in attaining them. For all those who are immersed in the ocean of research, this book makes an attempt in making us reflect about how a teacher could play a pivotal role in an individual’s life. That’s probably the reason why this book is recommended not only to prospective teachers but to almost everyone who ever had a teacher.

This book has been authored by Dr.Ken Bain, Provost and Vice President for Academic Affairs, and Professor of History and Urban Education at the University of the District of Columbia. He has been founding director of four major teaching and learning centers. This book of his has been widely acclaimed and has been translated into ten languages.

Content 

Before trying to generalise what they thought to be the most important attributes of the best teachers, the author identified teachers through careful selection. He firstly obtained evidence from the student’s response. They looked for indications where the teacher had reached them intellectually, educationally and had left them wanting more. Secondly he even tried to see what the students learnt. In short, they included in their study only those teachers who showed strong evidence of helping and encouraging their students to learn in ways that would usually win praise and respect from both disciplinary colleagues and the broader academic community.

The book then tries to throw some light on what do these teachers know about how the students learn. They best teachers seem to agree on the following points. That the knowledge is constructed and not received, mental models change slowly, questions are crucial and also the fact that caring is equally crucial. Each one of these statements tells a lot about how our teachers structure their lectures and plan their pedagogy. What was very interesting is that they found that the highly successful teachers have developed a series of attitudes, conceptions and practices that reflected some key insights that have emerged from the scholarship on motivation. They are ready to bend syllabus to accommodate and make the class more enriching. And also they seem to be aware that different approaches need to be adopted for different levels of learners. As a prerequisite, therefore, they tended to categorise their students based on their characteristics.

The next obvious question would be to know how they prepare to teach. The most fundamental approach would be to go the level of students and teach or help them come to teacher’s level and teach. Oversight in this aspect could render all the efforts of a teacher waste as the teacher might end up suffering from “curse of knowledge” and not be as successful teacher he/she ought to be. Further the role of Meta cognition (awareness and understanding of one's own thought processes) has also been stressed upon. This will help in understanding how the best teachers approach students based on what they think and also how as an individual a teacher has to evolve in order to better serve the students. In addressing this, the author has specified a baker’s dozen of specific planning questions which the best teachers ask themselves before they set an agenda for the class.

In this light, the author has gone on to see what these teachers expect of their students. Apart from sincerity, some amount of dedication from the student’s side is minimum requirement a teacher could ask for. The author has very succinctly used little bit of psychology and advocated that outcome of the students positively depends on intrinsic motivation and negatively depends on extrinsic motivation. This has been knowingly or unknowingly been followed by the best teachers and hence they know what to expect from their students. So they exactly know what will motivate their students to work and how much to expect from them. If things didn’t work out well, they did show willingness to tell the students when they might be better suited to a field other than the one they are pursuing currently.

Then the most important question: How do they conduct their class? Best ones have always resorted to non judgmental responsiveness, thereby creating an environment where the learner is not afraid to ask any question. Further, irrespective of the pedagogical tool a teacher employs, the author identifies seven practices they follow while conducting a class which include creating a learning environment, helping students outside the class, seeking commitments etc. Also possessing few non verbal abilities aid them in making the class a better place. The author here says that few of the best teachers know how to make silence loud; few others excel in the art of storytelling. Also at times, the best teachers ask provocative questions in spite of any possible repercussions they might face, because that might provoke a student to think beyond his/her limited boundaries.

How do the best teachers evaluate their students and themselves is the final aspect this book looks into. The author upfront mentions that the best teachers, within the given constraints, as far as evaluation is concerned, throw caution to the wind. They do not prefer the traditional methods of evaluation unless it has some merit and more importantly don’t believe in evaluating using a curve/distribution. Further, even though this might sound little far-fetched, few best teachers have even tried to evaluate a student not in comparison with the class as a whole but to that students previous self. Although this might appear to be the most ideal practice, the effort and the difficulty involved makes it quite challenging, if not completely impractical to follow. They are also aware that testing and grading the students are not some incidental acts that come at the end of teaching but powerful acts that have enormous influence on a being. Needless to say, they gather info with the sole objective to help the students but not judge them. And finally the book speaks about how the best teachers evaluate themselves as being one requires lot of self learning and more importantly accepting the fact that they can improve. They develop the abilities through constant self evaluation, reflection and willingness to change. Also the author has identified set of questions which the teachers ask themselves for evaluation.

Areas of improvement 

No attempt has been made to link the way the best teachers think/act to the existing literature on learning. This would’ve enabled to create a structure of all the findings and made the study more robust. This could partly be justified as the whole book converses in a positive tone. I.e., the author always specifies what the best teachers did rather than advocating what ought to be done in order to be the best teacher. I believe this serves two purposes. One, teaching is an art and cannot simply be replicated. In fact replication might prove to be costly. Hence anyone reading this book should try to take the essence and customise the learning to suit their own personality. Secondly, a normative tone might not be as compelling as a positive one.

Also there are quite a few tips on how to become best teacher; few of them are not implementable. For instance one of the teachers in study has completely dismantled the evaluation criteria of her college and created her own. But same might not be possible for others. If those added benefits go into making a teacher what he/she is, then the normal teacher is deprived of such chance.

Judgement in selection of teachers – The author has laid down the criteria for selection of teachers in the study. An element of subjectivity cannot be ruled out. And also, one of the criteria used is student’s ratings which might not depict the true picture. Although the author has taken additional method to select the best teachers, it’s good to take these results with a pinch of salt.

Only what not how – Most of the qualities of the best teachers are rather only descriptive. It is only specified what they are. Very little attempt to study or discuss how they have been developed has been made. It would’ve been immensely beneficial to try and understand how to inculcate those “best values”, rather than just studying what they are.

Conclusion 

This is a must read book for budding scholars who might grow up to become teachers, at least twice in their life. Once before they become teacher, so they know precisely, why they admire a teacher and what can be learnt from them. And once more after they become one, to gauge themselves and improve.

It captures the essence of a true teacher when it says, teachers are those who are not trying to force students into some kind of mold; on the contrary, they are trying to help them escape one. Probably Mahatma Gandhi is correct in saying “Those who know how to think need no teachers”, but I believe to learn how to think, one needs a teacher and this book proves the same.

Friday, 22 December 2017

How to "Earn what you want" when you ask customers to "Pay what you want"

Pay What You Want (PWYW) is a unique pricing strategy in which buyers are free to pay any price they want in exchange of a product/service, including zero. It is a participative pricing mechanism that delegates the whole price determination to the buyer. The seller simply offers one or more products under PWYW conditions, whereas the buyer decides on the price. After the buyer has set the price, the transaction automatically proceeds. Thus, the seller must accept the buyer’s price and cannot withdraw the product offer (Kim, 2009).

The reason behind giving buyers the freedom to choose their price is beneficial at times, because it eliminates the disadvantage of conventional pricing, one of the main fallout of which is buyer’s remorse. Buyer’s remorse is the sense of regret that the buyer experiences after making a purchase. As the payment in case of PWYW is totally voluntary, chances are very less that it would result in any buyer’s remorse. It might aid sellers in price identification when they enter into a new market. The information about the prices the buyers pay gives the potential buyers Willingness to Pay (WTP) which will provide sellers a potential price range.


Some modification in PWYW can also be seen as a form of imposing Libertarian paternalism. In this, we give the buyers freedom of selecting a price on their own. At the same time by giving them some anchors we could possibly influence their decision making which will direct them to optimal price.

What we did:
We conducted a survey which in which we asked participants how much they would be willing to pay in each of the following scenarios. We stated the scenario as follows, “You go to a local grocery store to buy a water bottle (800 ml). There you find an option of paying what you want, i.e. any price you feel justified, including price "0". In the above setting, kindly fill the responses of what would be your likely payment in each scenario.”
1. We first gathered their response in a plain vanilla case where they would be only shown a bottle and Pay what they wanted to.
2. In the next iteration, we mentioned the cost of production and recorded what price they would be willing to pay.
3. We then mentioned that 30% of their proceeds would be directed towards charity and recorded what price they would be willing to pay.
4. We then mentioned the MRP of the bottle and recorded what price they would be willing to pay.
5. We set a base price below which they aren’t allowed to pay and recorded what price they would be willing to pay.
6. We mentioned the average price paid by the previous customers and recorded what price they would be willing to pay.
We floated a Google form and circulated it among respondents mostly within the age group of 20-30, most of them students in graduate and undergraduate courses. Our objective was to initially see what price the buyer would pay without any conditions specified and also to see how the price would change for all the subsequent modifications.

Results
Plain Vanilla case:    Given that you like this bottle, with an option of Pay What You Want (PWYW), how much would you pay to buy this bottle?

Initially, without any anchor present, there were varying prices that buyers quoted. This was in expected lines as each consumer will act in his own accordance and in line with perceptions, which vary from person to person. It is however interesting to note that 3 persons have quoted the price 0, while the highest proportion of price quoted was Rs.100 by almost 20% of the respondents.

Display COP: It is displayed at the counter that the cost incurred for production is Rs.50 (Mention the payment that you would make)
Interestingly, cost of production did influence respondents to pay differential amount, but mean price decreased from Rs.74.25 to Rs.61.51. This meant that when the cost of production is lesser than the WTP, the PWYW price comes down significantly. Similar would be the case if the cost of production is more than the WTP of a buyer.

Proceeds to charity You are informed that the 30% of the payment is given to a charity (Mention the payment that you would make)


Charity does seem to act as a significant anchor in the current case. The average price has increased to Rs.76 and almost 20% of the population is willing to pay Rs.100. Interestingly, charity as a moderator has shown greatest increase in the mean price. This however goes without saying that the percentage of charity (30% in the current case) will also affect the price being paid.

Display MRP  It is displayed on the package that the MRP of the product is Rs.80 (Mention the payment that you would make)
MRP also acts as a significant anchor in current case. Almost 48% of the respondents were willing to pay the MRP. The average price however stayed at Rs.68.4. There could be several reasons for this, one of them is the fairness element. When people come to know about the MRP, they would feel that it would be fair to pay at least the MRP price. This is the reason why PWYW price anchored around the actual price even though the buyers had an option to pay any price they wanted.

Set a floor price  You are told that the minimum amount that needs to be paid is Rs.60 (Mention the payment that you would make)
Again the minimum price acts as a key anchor in determining PWYW price as almost 61% of the respondents have anchored their price at the minimum amount. Hence minimum amount setting could be a key influencer.

Display average price by previous customers :The average price paid by the previous customers is displayed at the counter i.e. Rs.65) (Mention the payment that you would make)
Surprisingly, average cost hasn’t been able to persuade the buyers to increase the price they pay for the product.

Conclusion
In this study exploring the participative payment mechanism of Pay What You Want, we could identify that pricing behavior alters in the presence of various factors like  cost of production, altruism, minimum amount to be paid, MRP and average payment by previous customers. While most of the factors could influence pricing positively as per the survey responses, a negative trend was observed in the scenario when respondents had  to base their pricing decision on the average payment by other customers. It is interesting to note that though majority of the respondents were willing to pay a higher price initially without any specific factors being mentioned, their willingness to pay reduced considerably once the different situations are introduced. The differing pricing strategies adopted by the respondents in the different scenarios indicate that the interactive effects of the different scenarios being considered could offer better explanations to the variation in the pricing responses of individuals in the context of PWYW mechanism. However this aspect is beyond the scope of this study.

Disclaimer: Even though our prof didn't quite approve of this idea (little pun intended?) much (indicated by the dismal scores we got), we did find this idea very interesting. 
Let us know what you think of this.
The other authors of this work are Remya T.Jacob & Abhishek.

Get into touch for more details.
@reddys10fpm@iimk.ac.in 

Monday, 15 August 2016

Why did SBI stock gain 7% inspite of 31% drop in profits for the quarter ??

The other day I read the newspaper headline, "SBI stock rallies over 7% post Q-1 results". I was happy for a moment because I owned SBI shares. I felt the company was doing good and might have earned bumper profits. I was wrong. SBI earned 31% less profits when compared to previous years. I was taken aback by this paradox.
To know this, I researched thus.

An absolute news about a company might not always be meaningful (while evaluating a stock). Because, as they say "Half knowledge is dangerous" . One should not evaluate any news in isolation. Now lets us consider other news in conjuncture with the SBI stock.



1.Banks' balance sheets have been taking a big hit from the past one and a half years, due to the slew of measures taken by Raghuram Rajan to clean up banks' books. This has caused an increased amounts of provisions made by banks. What are provisions? Provisions are those parts of profits that are set aside in anticipation of certain bad news (in our case NPA's). NPA's are those kinds of loans which you gave to your friend but he doesn't repay you on time or according to your terms.
Imagine you are to receive 100 rupees (Loan receivable) from your friend. He doesn't pay 20 rupees (NPA) and to this effect, you have to set aside/incur 20 rupees of your pocket money (Net profits). This is the cycle of NPA(in short). And this is the dismal state of todays banks in India.

2. Further, as a result of economic downturn (many lenders turning into NPA's) as well as Rajan's intervention (many more loans being recognised as NPA), many banks like Punjab National bank, Bank of Baroda, Bank of India etc have reported huge losses. Now it is a cheerful news that SBI is making little profits, if not losses amid this lacklustre.

3. Also there are many market experts out there, whose job is to estimate the company's profits based on everything that affects the companies. Its good news if company is able to outdo those expectations. In our case, for example, ETnow estimated profit of 2475 crores vs actual profits of 2530 crores.

So after all this analysis, I did feel that SBI stock has enough to cheer about. That is why:
Traders bought more SBI shares > demand exceeded the supply > stock price has risen.

Quick facts:

1.Stats of SBI
                         Q-1 Q-4    Change
GROSS NPA     6.95 6.5    0.45
PROVISION     (2.9)  (2.7)   (0.2)
NET  NPA         4.05 3.8    0.25

2.SBI's first and the only woman chairperson is 36th on the Fortune world's most powerful women
3.SBI has the largest yearly total assets and turnover among banks in India.

Thursday, 30 June 2016

Why Guar's price is influenced by Crude Oil

Guar is one of the most frequent vegetables we encounter on our dining tables. But only today I read in a newspaper "Guar prices increase post BREXIT as crude oil prices stabilize."
This headline surprised me! How come a vegetable,we know to be very tasty and humble be affected by Crude oil prices.
To know this I researched thus.



Fracking: It is the process of injecting liquid at high pressure into subterranean rocks, boreholes, etc. so as to force open existing fissures and extract oil or gas.

The liquid mentioned in the above line is the Guar gum. So the product which comes out of Guar (Guar Gum) is used in a process (Fracking) which is used in extracting the oil or gas.

Hence post the BREXIT, even though the crude oil got a beating they later stabilised due to supply cuts in Venezuela,Nigeria and the US the prices stabilised. As the supply fell down in comparison to the demand, the price of crude oil increased.

This has led to the increase in the prices of Guar as well due to increased demand from the American nations.

Quick facts:

1.Only 10% of the Indian production stays within the country and the remaining 90% is exported for shale gas and oil industries.

2. India is the largest producer of Guar amounting to 80% of the produce, followed by Pakistan. Take that Pak!!