Wednesday, May 6, 2020

Behavioral Economics Deck - 1345 Words

October 27TH, 2010 SWITCHING BARRIERS RESEARCH 1 UNDERSTANDING CONSUMER COMPLACENCY TO SWITCHING TO THE BEST OFFER According to behavioral economists, consumers don’t always behave rationally, like a market (in theory) does, and they don’t make decisions based solely on facts or logic such as price or quality. Other psychological factors have an impact on decisions. This explains why very often, consumers become complacent when faced with the best value proposition. FEAR OF OVERPAYMENT The opportunistic mindset is engrained in how people shop today. People have an expectation to get a deal and will not very easily purchase if they are convinced they could find better. The way value is framed is key reassuring people that they†¦show more content†¦Offering free maintenance for the purchase of a ver y expensive car creates a mechanism of postrationalization of the value The same happens when we buy a new TV for $1,000 — marked down from $1,300! We rationalize the purchase is by telling ourselves we scored a deal. Rather than evaluate how much a new television is worth to us, for example, we allow ourselves to be guided by manufacturer’s pricing and sale information. Source: â€Å"The Upside of Irrationality†, Dan Ariely, 2010 2 FEAR OF OVERPAYMENT SOLUTION: CREATING EFFECTIVE FRAMES TO GIVE CONSUMERS NEW POINTS OF REFERENCE THE RELATIVE FRAMING AS SAVINGS A m a z o n ’s s t r a t e g y t o c r o s s - s e l l additional products to consumers by highlighting the remaining amount of a balance required for free shipping. The relative framing of additional purchases as savings in shipping costs helps consumers overcome the reality of a higher total price after additional items are added. REMIX THE VALUE COMPARISON Value is an elastic point of view. Companies can change the game by changing the way consumers benchmark your product against the competition. PG challenged consumers to compare their new product Tide Total Care with dry cleaning, not with competing washing products. CONSUMER-DEFINED VALUE There is an accepted truth that once we are imposed aShow MoreRelatedThe Observational Coding Systems Developed For Mental Health1558 Words   |  7 Pagesis a macro level observational coding system designed to identify the emotional and behavioral characteristics of individuals and to measure the level of interactions between family members (Kerig Lindahl, 2001). In this study, researchers used video-recorded sessions of families and therapists to evaluate family dynamics and family processes. Trained coders primarily focused on social, interactional, behavioral, and social contextual theories to assess behaviors in individual, dyadic, and groupRead MoreWhy Don t More Men Make Their Own Sandwiches?1104 Words   |  5 Pagesboth men and women were valuable for survival and neither sex was thought to have an innate ability to perform certain tasks better than the other. Agricultural The agricultural revolution began with shift agriculture, and there was an â€Å"all hands on deck† approach to labour. Men and women worked on the field with hand tools like the hoe and digging stick. With the advent of the plough (requiring significant upper body strength), farm work became more male-oriented, and women increased their activitiesRead MoreRegulation Of The Us Banking Industry1578 Words   |  7 Pagesnew companies as well. In general it is healthier than before, other banking regulations include Dodd-Frank Act, Glass-Stegall Act, Gramm-Leach-Biley Act. The Dodd-Frank Act is very important to prevent banks failing like the fall of 2008 when the economic recession happened. In Investopedia, Volker Rule apart of the Dodd-Frank Act put restrictions on the ways banks are allowed to invest, while also regulating trading to protect consumers. However it also regulated the market, known as the â€Å"Wall StreetRead MoreLeadership Notes On Leadership And Motivation1314 Words   |  6 Pagesrequirements. Following the two days on module two, I am now better positioned to develop my own managerial and leadership capabilities, and using differing theories and concepts, I will be able to personally identify what essential characteristics and behavioral traits are necessary to make me an effective leader in the future. My Leadership Map Leadership Practice So to begin, the verb ‘to lead’ comes from the old English word leden or loedan, which meant ‘to make go’, ‘to guide’Read MoreGaming and Club Management3143 Words   |  13 PagesPrentice Hall, New Jersey, pp. 344-345. William Norman Thompson, 2001, Gambling in America: An Encyclopedia of History, Issues, and Society, Library of Congress, USA, pp. 126-127. 3. Using the history of gambling in the USA to describe the economic and social influences on the introduction and expansion of gambling. According to Van Hoff, H, Vallen G, McDonald M amp; Weiner (2007), the gaming industry has experienced tremendous growth in the United States. By 1998s, the gambling industryRead MoreThe Stakeholder Theory11680 Words   |  47 Pagesemployees, and suppliers are depicted as contributing inputs, which the black box of the firm transforms into outputs for the benefit of customers. To be sure, each contributor of inputs expects to receive appropriate compensation, but the liberal economics, or Adam Smith interpretation, of this model in long-run equilibrium is that input contributors, at the margin, receive only normal or market competitive benefits (i.e., the benefits that they would obtain from some alternative use of theirRead MoreIllegal Gambling3493 Words   |  14 Pageswhen they wager in other ways. Whether it be a racetrack or a casino, a lot of the money goes to the establishment, and far less is paid out in gambling winnings. But, even if there is not middle-man establishment, you still cannot win at gambling. A deck of playing cards has fifty-two cards, thirteen in each of the four suits. Your chance of drawing the card you want is only 1 in 52. Your chance of being dealt a perfect hand (in bridge, for example) is 1 in 635,013,559,599. What about dice? Each dieRead MoreAir Transport Management3797 Words   |  16 PagesThe primary functions of management are organising, staffing, planning, direction and control. Planning is the key to success for any airline. The ability to forecast demand and plan for an unknown future can save an airline in today’s volatile economic climate. Fundamentally, goals are established and the management teams set out plans to achieve them. This may range from company-wide goals such as capturing a new market or opening a new route, administrative goals relating to staff training andRead MoreResearch Report on Inventory Management at Whirlpool6804 Words   |  28 Pages then adding screws through drilling by using SPM machines. †¢ Formation of Bottom Disk : Bottom deck is the bottom back steel cover of the shell. It is molded in the shape to put the compressor and other necessary components. The bottom deck is made by notching, punching bending of sheets using press of different weights. †¢ Spot Welding: At the spot welding shell, back panel and bottom deck are all welded together so as to give out a compete metallic shell. We can find out three mainRead MoreEssay on Mintzberg 5 Ps of Strategy9155 Words   |  37 PagesSchendelz1- 36 PA R T 2 Defining Strategy FIGURE1 Deliberate and Emergent Strategies between organization and environment, that is, between the internal and the external context. In ecological terms, strategy becomes a niche; in economic terms, a place that generates rent (that is returns to [being] in a unique in management terms, formally, a product-market domain,23the place in the environment where resources are concentrated (leading McNichols to call this root strategy24)

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.