hollister france Behavioral Economics Whats That

Behavioral economics is the study of how and why people makemoney-related decisions. As a science it is [link widoczny dla zalogowanych] relatively new,although some of its findings have been known intuitively bygood salesmen and marketers for many years. Much of what hasbeen learned from recent studies, however, has not yet [link widoczny dla zalogowanych] beenapplied systematically in the real world of business. Here aresome [link widoczny dla zalogowanych] of the things the studies have shown thus far:
Decision Paralysis
This phenomena of behavioral [link widoczny dla zalogowanych] economics persists, even afterwe're [link widoczny dla zalogowanych] confronted with it's illogical nature. We [link widoczny dla zalogowanych] are more likelyto attend an event if we paid for the ticket than [link widoczny dla zalogowanych] if we got itfree, even when we have the same information and interest in theevent. Since the money is already spent, it has no relevance tothe decision, but even seeing this, aren't most of us going tofeel a greater [link widoczny dla zalogowanych] loss throwing away a ticket we paid for than onewe [link widoczny dla zalogowanych] got for free?
The applications of this fallacy are obvious, if you look. Forexample, perhaps rather than giving away tickets to those "getrich" seminars, the organisers would get better attendance byputting their "$100" tickets on sale for $3. Just having paidsomething makes people more likely to attend, with the addedbonus of getting some money up front.
Studies show that, given four samples of jam, for example,people actually spent more than when they had twenty to choosefrom. You may not want to tell the customer about all [link widoczny dla zalogowanych] 84 colorshe can choose from. Limiting options may be a useful salestechnique, according to [link widoczny dla zalogowanych] [link widoczny dla zalogowanych] this research finding.
Sunk-Cost Fallacy
We tend to act economically in a way that confirms currentbelief. When buying the same model of Mecedes, for example,current owners, who presumably already believe in the value of aMercedes, pay $7,000 more, on average, than new Mercedescustomers. I'm sure you can imagine the value of this knowledgeto companies that sell high-priced items.
Confirmation Bias
People avoid extremes. Given a choice of televisions costing$300, $500, and [link widoczny dla zalogowanych] $700, for example, not many choose the $700 one.But if you add a $1200 television to their choices, more willthen choose the $700 one, because it is no longer the mostexpensive one.
The last example suggests some obvious applications of this newscience of behavioral economics. In fact, if you look closely [link widoczny dla zalogowanych] atthe information coming from these studies, you can find a lot tohelp your sales and marketing efforts. [link widoczny dla zalogowanych] You'll find more resultsof these studies in Behavioral Economics: Part Two.
Extremeness Aversion
i>A new science sheds light on some of our most importantdecisions.

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