Posts Tagged ‘costs’

Four things which stop us from buying

Before every purchase, an area of the brain (the Nucleus Accumbens) consistently lights up to indicate a desire to buy. Similarly, before a decision not to buy, the insula in your brain activates to tell you that the product is not worth it. This is largely determined by the cost of the product. This cost is made up of four things which overwhelm the insula if they are excessive. These four include monetary, time, energy, a...

The Secret to Consumer Decision Making: Value

What if I told you there was a universal reason behind every decision in the world- an underlying formula which is used again and again? This formula not only dictates what products we buy or what services we seek out- but also all other aspects of your lives. The formula is simple: maximising perceived value. In this context, value can be defined as benefits divided by costs. If the result is greater than 1 (eg. Benefit...

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