Mingo

everyday can be a domingo

Overcoming manipulation in retail

http://video.ted.com/assets/player/swf/EmbedPlayer.swf

This interesting TED talk shows some patterns we tend to use when we decide, specially in retail, and we should overcome, which are

Comparing to the past

A) $2,000 travel to Hawaii cuts to $700, we take a week to think it, and when we go, price goes up to $1,500

B) $2,000 travel to Hawaii cuts to $1,600

Most people won’t take A), but will take B) because we compare the price of today with the price in the past, and not the price independently.

 

Comparing to other products in the shelve

$27 wine perception changes from average to expensive if placed next to:

$8 wine, $27 wine, $33 wine, $39 wine

$8 wine, $22 wine, $27 wine

 

% of saving by travelling:

A) A stereo costs $200, but if we drive to the next city it will cost $100

 

B) A car costs $40,000, but if we drive to the next city it will cost $30,900

Although saving is equal, most people do A) but not B) because they compare % of savings with costs.

 

Impatience of winning in the future:

A) Win $50 now, or win $60 in a month

B) Win $50 in 12 months or $60 in 13 months

People take $50 in A) and $60 in B) although the time of waiting is the same. We tend to get impatient about decisions in the present, but forget about it if it refers to the future.

 

 

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