The study of behavioral economics suggests that human decision-making is guided by evolutionary principles that helped us in the past but not necessarily today. Bruna Martinuzzi offers up seven ways to overcome the goofy and antiquated notions that lead us to make bad business decisions:
- Understand the pull of partial ownership.
- Preempt customer revenge.
- Choose carefully between social norms and market norms.
- Reconsider your first impressions.
- Know the hidden effect of price discounting.
- Offer fewer options.
- Beware of those who will say, “It will set a precedent.”