The Decoy Effect
Retailers are becoming creative with selling nowadays. But creativity is the least of their techniques. Marketers now work tirelessly with neurologists and psychologists to study brain patterns and consumer reactions to stimuli. From their successes is the decoy effect. Retailers use this method to trick customers into buying a higher relative valued product, at a higher price. The decoy effect is also being used in employment and the government. This trick is useful for retailers and customers alike. As a customer, you can learn the method of the trick and better avoid it when next you’re shopping.
The saying that the poor remain poor and the rich remain rich is beyond accessibility to money or resources. Social scientists have discovered another factor that affects wealth creation. The ‘psychology of scarcity’ as studied by professor Eldar Shafir Ph.D. and Sendhil Mullainathan, Ph.D. holds that decision-making is greatly affected by a person’s financial state. Poor people are said to be less efficient when making tough financial decisions. This theory changes the way class economics and poverty are studied. This psychology, however, doesn’t negate the fact that decision making can also be terrible with rich people. It simply holds that a poor person’s wrong decision has more and consequences, which is more felt because of their economic state.
The average human being craves the good things of life without having to work a single day. Surprisingly, this fact only becomes true after a couple of years of a person’s existence. Numerous cultures in Africa and Asia prioritize hard work and imbibe this trait in their young ones through early socialization. While many may criticize their methodologies and rigidity, these people tend to have happier lives.
The impact of 2020 in the business world is terrifying. Several consumer products had terrible sales, with most companies having to let go of most of their staff. However, 2021 is another opportunity to start again, integrate into the new environment, and discover new ideas to boost sales. Consumers are always demanding new products in different ways. Some follow a trend and swarm specific products. Whatever is causing this created a trend, a phenomenon to exploit. So if you’re a business person or startup, you definitely want to learn the trends of 2021.
By nature, humans inherently believe that the availability of may choices means more satisfaction, freedom, flexibility and comfort. However, Barry Schwartz believes that more choices actually make things more complicated and difficult.