Why You Buy, Part Three

Still more discoveries from the recent studies in behavioral economics:

Over-Valuing "Mine"

People consistently place a higher value on things they own, even if their "ownership" is temporary. The research is interesting, and I often saw this phenomenum used by salesmen on busses in Ecuador. A product is thrust into your hands, and after a ten-minute sales pitch, you pay or give back "your" item. It's a very effective technique.

Regret Aversion

Of course you should bet $10 to win $20 on a toss of a coin, but for many, fear of regret (I lost $10!) outweighs desire to profit (I won $20!). The applications for this facet of human nature are in how you present things. With a person who has a strong tendency towards regret aversion, you'll more likely to make a sale by suggesting what will be lost if he does't buy, than by promising great benefits.

Refusal To "Book" Losses

I often saw this one when I worked at a casino. The loss doesn't seem real to the player until he leaves the table, so he stays and loses more. There are thousands in casinos right now, losing more money and mumbling, "I just want to get even."

Investors regularly hold losing investments simply because to sell them is an admission of the truth. Ask them which stocks will have the greatest return, and they won't name their losing ones. They also won't sell them to invest the money in the better stocks they do name, which would be the logical thing to do.

The Future Of Behavioral Economics

The science of behavioral economics is a growing field, with more studies being done every year. Though it hasn't had much formal transference to the world of business yet, the techniques being studied have certainly been used for ages. Learn them, and you can profit - or protect yourself.

Steve Gillman has been studying every aspect of money for thirty years. You can find more interesting and useful information on his website; http://www.UnusualWaysToMakeMoney.com

In The News:

CAIT seeks ban on Amazon, Flipkart's festive season sales  MoneycontrolThe Confederation of All India Traders (CAIT) on September 13 asked the government to ban upcoming festive sales on Amazon India and its rival Flipkart.
Maruti Suzuki blames increase in ownership cost for declining car sales  Business StandardThis view comes in the backdrop of Finance Minister Nirmala Sitharaman's comment that a change in the ownership pattern of cars from owned vehicles to cab ...
Ahead of big billion day sales, Flipkart expands delivery reach by 80% to cover pan India  The Financial ExpressWith this increase in reach, Flipkart consumers in smaller towns will be able to access large appliances such as Smart TVs, washing machines and refrigerators, ...
Ban Amazon and Flipkart's festival sales, traders body urges govt  LivemintTraders body CAIT has written to the govt seeking a 'blanket ban' on festive season sales conducted by e-commerce giant Flipkart, its rival Amazon and others.
Slowdown Blues: How would Ola, Uber cause truck sales to plummet, asks Yashwant Sinha  Business TodaySinha also raises doubts about Sitharaman's announcement to organise a mega-shopping festival in India; says.
Tractor sales free fall continues, see sharpest decline in August  ETAuto.comIn August 2019, tractor sales stood at 37, 050 units against 44390 units in the same month last year, according to the latest data by Tractors and Me..
Gucci's Social-Media Status Fell, and Its North American Sales Dropped  The Wall Street JournalMILAN—Gucci boosted its brand and sales by using social media to flaunt its connections with hip-hop artists and promote its theatrical fashion shows, but that ...
Calculating sales efficiency in a startup: The magic number that will help you scale  TechCrunchSales efficiency is the best way to understand the economics of a business. It answers whether a business can ever scale. The harsh truth is, if it can't scale, ...
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Electric cars are cutting into combustion engine sales  QuartzCalifornia's car buyers are shifting their loyalties from the internal combustion engine to electric batteries—but ever so slowly. Despite car sales declining in the ...
Car sales slump deepens in September  The Financial ExpressSales during the shraadh period are negligible and since the period ends on September 28, the entire month is likely to be a complete washout,” a Maruti Suzuki ...
Fort Lauderdale Passes Ordinance Raising Age For Tobacco Sales To 21  CBS MiamiFORT LAUDERDALE (CBSMiami) – Fort Lauderdale has become the second city in Florida to raise the age for tobacco sales to 21. The city commission ...
Car, SUV sales at a two-decade low in August 2019  Autocar IndiaOverall passenger vehicle sales decreased 31.57 percent, compared to August 2018. Click for more details.
Auto Sales Surge 1.8% in August, Spending Flat Ex-Autos  MishTalkA surge in auto sales buoyed consumer spending in August. Ex-autos, retail spending was flat.
SexTech, Kobalt, sales efficiency, philanthropy and ethics, Brexit, and startup growth tactics  TechCrunchTech startups want to destigmatize sex Sex, despite being one of the most fundamental human experiences, is still one of those businesses that some ...
Automobile dealers urge SIAM to report monthly sales on actual-registration basis  BusinessLineAutomobile dealers' body FADA has asked its auto industry counterpart SIAM to start reporting monthly sales data on the basis of actual registrations on the ...
‘Liquor sales in India to triple by 2022, but red tape binds the industry’  The New Indian ExpressMoreover, being a state subject, the industry has to deal with multiple authorities to get a large number of clearances to do business.
Oculus Quest devs see standalone VR as good for sales despite curation frustration  VentureBeatWe've heard from a growing list of VR developers who made it through Facebook's stringent approval process for the Oculus Quest standalone VR headset and ...
Cognizant CEO wants sales hands to target top 300  Economic TimesMUMBAI: In a bid to stave off competition in digital services offerings, Cognizant CEO Brian Humphries has directed client-facing executives to increase sales to ...
Premium Smartphone Sales Beating Indian Economy Slowdown to Continue Growth  News18Rise of digital payments, essential services, increased discounts and a wide range of discounts are helping premium devices grow despite a weak economy.
Amazon strengthens play in furniture segment ahead of Diwali sale  Business StandardAmazon India has expanded its range in the furniture category to over 160,000 products, especially from small and medium businesses, ahead of the festive ...
Slowdown blues: Auto sales down 23.5%, worst slump in two decades  Business StandardPassenger vehicle sales in the country declined for the 10th straight month as carmakers resisted increasing inventories at dealerships, signalling that it would ...
Despite heavy discounts, festive season fail to drive up vehicle sales  Business StandardDespite heavy discounts from automobile manufacturers, customers don't seem to be excited this festival season, with sales during Onam and Ganesh Chaturthi, ...
Solid U.S. retail sales calm some worries about economy  ReutersU.S. retail sales increased more than expected in August, pointing to solid consumer spending that should continue to support a moderate pace of economic ...
JLR’s China sales are up, but it’s too early to call recovery at Tata Motors  LivemintIt is too early to hope for a turnaround, amid continued turbulence in the automobile industry, globally.Weak sales and capacity utilization have been translating ...
Kerala Records All-time High Liquor Sales at Rs 487 Crore During Onam  News18Despite the recent floods, the month of August was especially profitable and recorded a Rs 71 crore rise in total sales from July.
Hyundai August 2019 Sales Analysis Of Grand i10, Venue, Verna, Santro  GaadiWaadi.comHyundai gained 3.3 per cent market share in August 2019 with a total of 38205 unit sales in the Indian market.
How The Aftermath Of 9/11 Changed Car Sales Forever  JalopnikIn the wake of the September 11th attacks, George W. Bush famously told Americans to go shopping. The country was terrified, war was on the horizon and the ...
Renault Triber MPV Outsells Kwid Hatchback in August 2019 Sales  News18In its first month in the Indian market, the Renault Triber has outsold the Kwid hatchback. The MPV was launched in India at very competitive pricing starting at ...
Marijuana Stock Aurora Cannabis' Sales Soar 349%  Motley FoolAurora Cannabis (NYSE:ACB) is doing everything it can to capture its share of the marijuana industry's torrid growth. The Canadian cannabis company has ...
Spirits high for Wetherspoon customers as sales rise  The GuardianThe JD Wetherspoon chairman, Tim Martin, said a rise in the pub chain's sales showed that customers have not been put off by his regular pro-Brexit diatribes, ...
Jaguar I-PACE Sales Decreased To 903 In August 2019  InsideEVsAugust 2019 definitely wasn't a good month for Jaguar. Sales globally decreased by 17.8% year over year to 9702. The Jaguar I-PACE noted 903 sales.
4 Ways to Turn Cold LinkedIn Connections Into Clients (Without Being Sales-y or Spammy)  EntrepreneurTry these tactics to turn LinkedIn into a client generator.
With stake sales, Yes Bank is now poised for a makeover  LivemintMumbai: Yes Bank's shareholding structure may witness a major churn by the year-end as founder Rana Kapoor has initiated talks to sell a part of his holding to ...
Prime Day sales burst in July may cause weakness in August retail sales  CNBCFriday's August retail sales is the last big economic report before the Fed meets, and it could be muddied by Amazon's July Prime Day sale.
A Ban on Flavored E-Cigarettes Would Sharply Cut Sales  The New York TimesCompanies and trade groups are weighing the risks of fighting a proposed ban on most flavored vaping products, to protect mint and menthol varieties.
Apple iPhone Sales dropped below 50% showing a Great Decline  Digital Information WorldDespite iPhone's great contribution in the revenue of Apple, the last quarter has marked some important findings. The iPhone sales has dropped by $29.74 ...
US Retail Sales Preview: Consumer confidence equals sales  FXStreetThe US Census Bureau will issue its advance Monthly Sales for Retail and Food Services for August on Friday September 13th at 12:30 GMT, 8:30 EDT. For.
Tata Motors share price rises over 8% on recovery in China sales  Business TodayTata Motors share price rose in trade today after the Indian auto major reported a recovery in August retail sales for China market . Tata Motors share price rose ...
Infrastructure firms deleverage and unlock value via sale of road assets  LivemintMumbai: Monetizing road assets is in vogue among infrastructure construction firms and has gained traction in the recent past. On the one hand, this shows the ...
Curt Kastan named sales leader of Preston Plano Parkway office  The Dallas Morning NewsEbby Halliday Realtors has appointed Curt Kastan sales leader of its Preston Plano Parkway office. Chris Kelly, president and chief executive officer,...
Pre-owned car sales expected to grow 10% in 2019, millennials emerge biggest buyers: OLX  MoneycontrolAt a time when new car sales are witnessing record decline in India, pre-owned vehicles are likely to witness 10 per cent growth in sales to touch 4.4 million ...
Auto sales crash: 13 reasons why fewer people are buying cars  Moneycontrol.comPassenger vehicle sales decline for the tenth straight month in August, here are some reasons why the auto sector is struggling.
Beto O’Rourke Urges Banks to Cut Services for Gun Sales  The New York TimesBeto O'Rourke, the Democratic presidential candidate, on Thursday called on banks and credit card companies to address gun violence by refusing to provide ...
Polka to the top: Inditex registers 7 percent sales growth thanks to one Zara dress  Moneycontrol.comInditex said the unusually warm summer in Europe this year helped push sales for the dress.
August 2019 NPD: A 20-year low for August game sales  VentureBeatThe August 2019 NPD report is in for the video game business in the United States, and software sales hit their lowest point si.
Home sales for the week of Sept. 9 | News  The Almanac OnlineA complete list of home sales on the Midpeninsula, where Menlo Park recorded the highest sale at $9950000 for a newly constructed six-bedroom modern home ...
Huge Drop In Toyota Fortuner SUV, Innova Crysta MPV Sales In August 2019  GaadiWaadi.comThe ongoing sales slump in the auto sector has affected even some top-selling models like Toyota Fortuner and Innova Crysta.
Online smartphone sales in India grow 26% in Q2 of 2019: Counterpoint  Hindustan TimesXiaomi took the top spot with around 46% of the online market in Q2 this year. Realme and Samsung also boosted the growth of online smartphone sales during ...
Are Uber, Ola affecting auto sales?  Times of IndiaIndia Business News: Automobile sector sales are seen as a key barometer of economic activity. In recent quarters, the sector has seen faltering sales.
Lululemon Fall Sale on Clothing and Accessories 2019  SELFLululemon has lots of great (and layerable) jackets, fleeces, leggings and more on sale, just in time to embrace fall. Check out some of our favorites, here.
Reliance introduces anti-bribery, anti-money laundering clauses in gas sales pacts  MoneycontrolReliance Industries has introduced anti-bribery and anti-money laundering clauses in the sales agreements it intends to sign with potential users of newer gas ...
China Sees Decline In Electric Vehicle Sales For Second Consecutive Month  NDTVAuto.comChina has reported a decline of 16 per cent in electric vehicle sales for the month of August. Last month the cumulative sales of all pure-electric, fuel-celled, and ...
US retail sales rise, driven by auto, online purchases  Financial TimesUS retail sales climbed more than expected last month driven by purchases at auto dealers and online retailers, however an underlying gauge of consumer ...
Post-sale discount under GST: A clear position may help boost festive sales  Business StandardReaders may accuse me of hyperbole, but from my vantage point, it appears that never has removal of certain ambiguities/errors in tax laws been so critical for ...
Deals Buzz: With stake sales, Yes Bank is now poised for a makeover  LivemintIn other news, Hedge fund Steadview Capital is in talks to lead a $50 million funding round in two-wheeler rental startup Vogo.
Johnson & Johnson's $3.5 Billion Prostate Cancer Drug Sales At Risk?  ForbesJohnson & Johnson (NYSE:JNJ) is the leader in the prostate cancer hormonal therapy market, with Zytiga sales of $3.5 billion in 2018. Other key drugs include ...
Auto Crisis: Two-Wheeler Sales Slip 22 Per Cent In August 2019  NDTVAuto.comTwo-wheeler sales in India declined the worst in over two decades in August 2019, with both motorcycle and scooter sales falling over 22 per cent.
47 pc of Indian SMEs find sales to be greatest challenge: Survey  YourStoryA&A Business Consulting, an SME consulting firm, carried out a nationwide SME survey of 0.08 million SMEs which found that 47 percent of Indian SMEs ...
Tesla reportedly reinstates free Supercharging for new Model 3 owners in sales push  CNETAs the third quarter of the year ends, Tesla wants to pump its sales numbers up.
Automobile dealers ask manufacturers to report retail sales to avoid inventory accumulation  Economic TimesMUMBAI: The apex automobile dealers' body in a letter to the Society Indian of Automobile Manufacturers (SIAM) said that the organisation should upgrade the ...
Auto sales: Govt took the bold step of charging the proper price of car driving  The Indian ExpressYet much worse is happening with the Motor Vehicles Act, a fine piece of legislation to make car drivers behave in a responsible fashion.
Ailing auto sector hopes for GST rate cut to revive sales, government remains unsure  India TodayWith August sales data showing a steep decline, the ailing auto sector has been in reverse gear for the past 10 months.
Rain takes a toll on cracker sales in Hubballi  Times of IndiaHUBBALLI: Continuous rain, the recent floods that caused havoc in the district, restrictions imposed by the Supreme Court, anti-pollution campaigns an.
Great Wall sales pick up; Geely slump continues  Automotive NewsSales at Great Wall Motor Co., China's largest light-truck maker, gathered steam in August on demand for a new crossover and pickups. But deliveries at Geely ...
Decoding FM Sitharaman's claim: Is only Ola, Uber behind auto slowdown?  India TodayIndia Today Data Intelligence Unit (DIU) has found that not only is the auto sector facing a slowdown, but cab aggregators Ola and Uber are also witnessing a ...
Top 20 hatchback sales Sep 2019 - Maruti Swift No 1, Tata Tiago 9th  RushLaneHere are the best selling hatchbacks of India. Top hatchback sales Sep 2019 reveals that Maruti Swift has overtaken Baleno and Alto.
City sales tax revenue up for month, down for year  Herald-BannerLocal merchants had a busy July, reporting boosts in sales tax revenue they received.
This Weekend's Best Sales: H&M, Kate Spade & More  E! NEWSWe love these products, and we hope you do too. E! has affiliate relationships, so we may get a small share of the revenue from your purchases. Items are sold ...
Port Angeles man charged with heroin sales  Peninsula Daily NewsPORT ANGELES — A 30-year-old Port Angeles man has been charged with dealing heroin next to a school bus stop after the latest in a series of drug-related ...
The 5 Habits Of Successful Sales Leaders  ForbesGreat sales managers develop 5 habits to engage their team members.
All the best sales to shop this weekend: Insane deals on Microsoft, Samsung, Apple, Sony, and more  Yahoo LifestyleWe scoured the internet for the best deals this weekend—so you don't have to!
Customer ratings to play larger role in sellers' sales on Snapdeal  ETRetail.comEach buyer on Snapdeal can rate their purchases, rating them between 1-5 stars.The rating for each product, along with the number of users who have ra..
Buyers prefer Apple despite falling sales, US-China trade war: GlobalData  LivemintBengaluru: A second consecutive quarter of declining iPhone sales notwithstanding amid a US-China trade war, the overall sentiment for Apple Inc. remains ...
Great Wall May Consider Building Cars In Europe Once Sales Hit 50,000 A Year: Chairman  NDTVAuto.comChina's Great Wall Motor may consider building car manufacturing facilities in the European Union once its sales there hit 50,000 units a year, its chairman said, ...
Fasten your seat belts: Big auto slowdown sale is here  Economic TimesRebates for PVs are now as high as 29% while truckmakers are further pushing up the meter to 20-25%.
As ownership change hits sales, IDBI Federal Life turns to other channels for growth  Moneycontrol.comPrivate life insurance company IDBI Federal Life Insurance is looking to build business through the proprietary distribution channels. In an interaction with ...
Auto sales slowdown: Carmakers cannot sit idle waiting for a saviour; proactive approach, fresh strategy...  FirstpostThis crisis is a good opportunity for carmakers to introspect and see if they have been taking the Indian customer for granted vis-à-vis other markets.
India’s deepening car sales slump spreads alarm  Financial TimesAnnual festive season to be a key test as car market faces worst crisis in 20 years.
Pipe Sales To End At Pipestone National Monument Visitor Center  National Parks TravelerPipes carved from pipestone will no longer be sold at the visitor center at Pipestone National Monument out of respect for Native American beliefs.
Two-Wheeler August 2019 Sales Analysis – Hero, Honda, TVS, Bajaj, Suzuki, RE  GaadiWaadi.comThe domestic two-wheeler volumes in August 2019 stood at 15,14196 units with a massive 22.24 YoY sales decline.
If the Landgate sale is not a broken promise from Labor, it is certainly a big about-turn  ABC NewsThe Landgate deal represents a sizeable change in position by WA Labor, a party that spent years fighting tooth and nail against privatisations but just locked in ...
Tata Motors' Global Sales Drop 32% in August  Economic TimesMUMBAI: Tata Motors reported a 32% decline in the group's global vehicle sale (wholesale) for August to 72,464 units. This includes the sales numbers for ...
Maruti Suzuki: Over 70 per cent petrol vehicles sales from BSVI versions  OverdriveMaruti Suzuki currently has seven BSVI models on sale right now - Overdrive.
Outlawing vape sales will just lead to more risks with black-market products | Mulshine  NJ.comThe state has created a task force to study the dangers of vaping, but suppressing the vape shops would have the effect of sending more customers to the ...
Automobile sales in India see the worst-ever fall in 21 years  Economic TimesAutomobile sales in India witnessed its worst-ever drop in August with despatches in all segments, including passenger vehicles and two-wheelers, continuing ...
Flipkart’s parent adds Rs 1,616 crore to cart ahead of sales  Economic TimesBENGALURU: In the run-up to the annual festive sale of the year, Flipkart India, the wholesale arm of the Walmart-owned ecommerce marketplace, has received ...
JLR sales dip 7% in August to 34,176 units  LivemintNEW DELHI : Jaguar Land Rover (JLR), a part of Tata Motors, on Monday reported a 6.7 per cent decline in total sales at 34,176 units in August as compared ...
Gold Price Prediction - Prices Whipsaw Following Stronger US Retail Sales  FX EmpireGold prices whipsawed for a second consecutive trading session as indecision became the theme of the day. US yields surged higher, but the greenback was ...
Weekly top residence sales for Aiken County for Aug. 29 through Sept. 5  Aiken StandardThis information has been gathered from public information available at qpublic.schneidercorp.com.
Bud Light Seltzer is in the works amid hard seltzer sales craze  AdAge.comAlso on the horizon are Bud Light Lemonade and Bud Light Crisp, reports trade publication Beer Business Daily.
Two wheeler sales Aug 2019 - Hero, Honda, TVS, Bajaj, Suzuki, Royal Enfield  RushLaneTwo wheeler sales continue to decline in India. For Two wheeler sales Aug 2019 report, Hero stayed on top, followed by Honda, TVS, Bajaj, Suzuki, RE.
Petrol, diesel sales fall by over 50% in Bihar  Times of IndiaPATNA: The implementation of the new Motor Vehicles Act, 2019 with steep fines for traffic violations appear to have taken a toll on the sales of diesel and petrol ...
Maruti Suzuki's BS6 Models Constitute 70 Per Cent Of Its Total Sales  Car and BikeMaruti Suzuki has announced that it has received significant response for its BS6 vehicles. Recently, the carmaker announced that seven of its petrol models ...
BPCL jumps 7% on reports of govt mulling stake sale  Moneycontrol.comShares of Bharat Petroleum Corporation gained 7 percent intraday on September 13 after a media report indicated that the government may be considering ...
Pre-Owned Car Sales Expected to Grow 10 Percent in 2019, Millennial Emerge Biggest Buyers: OLX  News18At a time when new car sales are witnessing record decline in India, pre-owned vehicles are likely to witness 10 per cent growth in sales to touch 4.4 million ...
Sales no more on autopilot, car companies pray for a break  LivemintMint analyses the factors behind the sector's worst slowdown as it struggles with changing paradigms.
Honda, Suzuki alter 2-wheeler production plans amid weak sales  LivemintHMSI had last year announced a *fresh* investment of ₹630 crore at its Vithalapur plant near Ahmedabad.The relook at the production plans follows a more than ...
Skoda Rapid, Octavia, Kodiaq, Superb August 2019 Sales Analysis  GaadiWaadi.comSkoda will spearhead the Volkswagen Group's Vision 2.0 in India and is going through a rough patch with a bit higher than 1000 units sold in August.
Selectboard votes to ban pot sales in Clarendon  WCAXCLARENDON, Vt. (WCAX) The Clarendon Selectboard passed an ordinance banning recreational marijuana sales and dispensaries in the Rutland County ...

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