“Let me tell you a story that describes the real influence of FREE! on our behavior. A few years ago, Amazon.com started offering free shipping of orders over a certain amount. Someone who purchased a single book for $16.95 might pay an additional $3.95 for shipping, for instance. But if the customer bought another book, for a total of $31.90, they would get their shipping FREE! Some of the purchasers probably didn’t want the second book (and I am talking here from personal experience) but the FREE! shipping was so tempting that to get it, they were willing to pay … Continue reading The Story of “Free!”
Let’s carry on from yesterday! Yesterday’s unfinished part is colored gray. “Now you are on your second task: you’re shopping for your suit. You find a luxurious gray pinstripe suit for $455 and decide to buy it, but then another customer whispers in your ear that the exact same suit is on sale for only $448 at another store, just 15 minutes away. Do you make this second 15-minute trip? In this case, most people say that they would not. But what is going on here? Is 15 minutes of your time worth $7, or isn’t it? In reality, of … Continue reading Predictably Irrational–P2
“Let me explain with an example from a study conducted by two brilliant researchers, Amos Tversky and Daniel Kahneman. Suppose you have two errands to run today. The first is to buy a new pen, and the second is to buy a suit for work. At an office supply store, you find a nice pen for $25. You are set to buy it, when you remember that the same pen is on sale for $18 at another store 15 minutes away. What would you do? Do you decide to take the 15-minute trip to save the $7? Most people faced … Continue reading Predictably Irrational-P1
Hi all! So, I have this idea recently of posting, regularly I think, some of the paragraphs I find interesting while reading some of the books. To make the reading experience of those paragraphs more enjoyable for you, I’ll try to make it as tight as possible, 1-Min-Reading. I’ll try sometimes to post the paragraphs unfinished so you can come on a day later and carry on reading from the point we stopped. The paragraphs won’t be on a particular domain, I’ll only post from the books I’m reading and really find enjoyable. I won’t go through an entire book or tackle each … Continue reading 1-Min-Reading, oh ya!