Pricing Strategy and Heuristics: How Humans Respond to Expensive Goods
Автор: A Simple Model
Загружено: 2021-07-27
Просмотров: 878
Описание:
In this video we are talking about pricing strategy and how humans react automatically to certain pricing triggers. Mental shortcuts employed to make quick decisions are known as judgmental heuristics. These heuristics are frequently very useful but occasionally lead to wild errors. As the video will demonstrate, the fixed reactions are so strong that people are frequently completely unaware of what is influencing them. But they are critical to understand because they make us terribly vulnerable to anyone who does.
I thought this would be an interesting introduction to judgmental heuristics since this topic is also relevant to the world of investing. Heuristics-and-biases insights relating to money became known as behavioral economics.
Source: Influence, New and Expanded: The Psychology of Persuasion by Robert B. Cialdini
https://www.amazon.com/Influence-New-...
Additional Fascinating Reading: Thinking, Fast and Slow by Daniel Kahneman*
https://www.amazon.com/Thinking-Fast-...
Daniel Kahneman won an economics Nobel in 2002.
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