Inner Cosmos with David Eagleman Ep8 "How does your brain decide what to buy?"
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May 15, 2023 AI Snips
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Humans Defy Rational Economic Models
- Humans do not behave like the rational decision-maker homo-economicus model.
- Our decisions are irrational, highly emotional, inconsistent, and influenced by branding and immediate gratification.
The Decoy Effect in Sales
- William Sonoma added a more expensive home bread bakery next to a cheaper model to boost sales.
- This gave customers a comparison point, helping them decide and increasing sales of the cheaper option.
Starbucks Shifts Coffee Value Perception
- Starbucks created a unique coffee experience that separated their brand from typical diners.
- This shifted consumers' valuation networks, allowing them to charge higher prices without seeming overpriced.