- Treasure Hunting - Part Two
Treasure hunting begins at home. People regularly find famous old books and valuable antiques in their attics, so get up there and look. - Why You Buy, Part Two
Part 2
More of the findings of the recent studies in behavioral economics:
Webers Law
A change of stimulus is more emotional and motivational, according to the base: Most subjects tested would drive across town to save $10 on a $20 item, for example, but not to save $10 on a $500 item. The lesson for sales people? If you won't lose a sale on a thousand-dollar couch over $10, sell the other benefits of the couch in your sales pitch.
Familiarity Fallacy - Why You Buy
Behavioral economics is a new science that sheds light on some of our most important decisions. It is the study of how and why people make money-related choices. Here are some of the things the studies have shown thus far:
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