The negative psychological impact we feel from losing something is about twice as strong as the positive impact of gaining the same thing.
Finding ₹100$ would makes us happy
Losing ₹100$ would makes us 2X unhappy
I took Ogilvy's course on Behavioural Economics and Comsumer psychology.
Here are the 10 important theory's I learned from it which you'd be a fool to miss out on:
The negative psychological impact we feel from losing something is about twice as strong as the positive impact of gaining the same thing.
Finding ₹100$ would makes us happy
Losing ₹100$ would makes us 2X unhappy
The way you frame your sentences is very important. Make them forget about the negative thing by reiterating something which might be positive. We have a stronger bias for things that sound positive.
10% chance of death Vs 90% chance of survival
Humans are hardwired for instant gratification.
as people get closer to the reward, they speed their behavior. So, reward people sooner instead of later
eg: Don't make a goal of reading 52 books a year, make it 1 chapter per day.
It's the phenomenon where our decisions are heavily based on the 1st piece of information we receive, regardless of whether the information is relevant or not.
Make the first piece of information powerful.
People tend to stay with the default settings.
Case 1: When people had to opt out of being organ donors- very few people opted out
case 2: When people had to opt in - very few people opted in.
Simply changing the default setting made a drastic difference.
Companies make limited edition products to drive sales even though they can make the SAME product in abundance
One way of encouraging customers to buy their products, is FOMO. If they didn't buy now they might not get a chance later
Example: Limited Edition Sneakers
Just thinking about money can make you experience a kind of physical pain that stops you from spending
eg: Removing the currency dollar in the menu increased the average spending by 12%
eg: Starbucks launching a membership card
When you sell something where the person has to assemble the item at the end, we put higher value to the things we help create
Eg: Subway Sandwhich Vs McDonalds
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“We don’t negotiate salaries” is a negotiation tactic.
Always. No, your company is not an exception.
A tactic I don’t appreciate at all because of how unfairly it penalizes low-leverage, junior employees, and those loyal enough not to question it, but that’s negotiation for you after all. Weaponized information asymmetry.
Listen to Aditya
And by the way, you should never be worried that an offer would be withdrawn if you politely negotiate.
I have seen this happen *extremely* rarely, mostly to women, and anyway is a giant red flag. It suggests you probably didn’t want to work there.
You wish there was no negotiating so it would all be more fair? I feel you, but it’s not happening.
Instead, negotiate hard, use your privilege, and then go and share numbers with your underrepresented and underpaid colleagues. […]
Always. No, your company is not an exception.
A tactic I don’t appreciate at all because of how unfairly it penalizes low-leverage, junior employees, and those loyal enough not to question it, but that’s negotiation for you after all. Weaponized information asymmetry.
Listen to Aditya
"we don't negotiate salaries" really means "we'd prefer to negotiate massive signing bonuses and equity grants, but we'll negotiate salary if you REALLY insist" https://t.co/80k7nWAMoK
— Aditya Mukerjee, the Otterrific \U0001f3f3\ufe0f\u200d\U0001f308 (@chimeracoder) December 4, 2018
And by the way, you should never be worried that an offer would be withdrawn if you politely negotiate.
I have seen this happen *extremely* rarely, mostly to women, and anyway is a giant red flag. It suggests you probably didn’t want to work there.
You wish there was no negotiating so it would all be more fair? I feel you, but it’s not happening.
Instead, negotiate hard, use your privilege, and then go and share numbers with your underrepresented and underpaid colleagues. […]
