According to Wales and Stager, Guided Design is an instructional strategy built on an eclectic integration of psychological principles and viewpoints, wbich incorporates the learning principles of practice, modeling, organizations, and reinforcements; capitalizes on the motivational principles of affiliation, achievement and self-actualization; and focuses on the use of inductive reasoning within the group setting. The effectiveness of guided design as an instructional technique in applied social or consumer psychology was evaluated with 17 subjects who were exposed to a three-hour problem involving decisions about advertising. The results revealed no significant differences between the exam performances on guided design questions as compared to lecture-related questions. Subjects thought that 40% of the course should be composed of guided design projects. Findings suggested that the guided design was no more or less effective than the lecture approach for the transmisslon of knowledge and that a preference for guided design activity appeared related to both group productivity and group cohesiveness. (Author)