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CR
1. Historian: 300 y ago: frame-based shipbuilding tech developped.
Assumptiom: warship: simple construction, commercial: advanced techniques tested
However: 400 year-old commercial ship incorporated both framed based adn earlier plank-based
Strengthen?
E. Frame based tech was used in warship 350 y ago (earlier than 300 y ago)
2. 2 groups:
- (1) was told: a person in a story: 50% rain and carried an umbrella
- (2) same story but the person not carried an umbrella
-> Estimate the likelihood getting caught in the rain:
(2)>(1)
C: lack of preparation -> higher risk of adverse outcome
Assumption?
E
RC:
P1: The choice of inaction (saving rather than spending) often ignore. Marketers' challenge: outperform competitor and convince customer to spend. -> Theory: discomfort of spending (pain of payment) is constant in all payments. BUT: in marketing: lots of factors -> perceived value of money and the discomfort when spending money
=> Background info on the econmic theory and reality in the marketing world.
P2: Retailers: deffered payments enhace a consumer's readiness to purchase. Proof: the time value of money (future payment lessen burdensome than immediate ones). BUT: irrational side: immediate payment -> emotional loss, displeasing => Delaying payment dull the discomfort and ease purchase barrier.
=> Disadvantage of immediate payment and an alternative solution: deferred payment.
P3: Concept of "mental accounting": consumer categorize funds into distinct mental accounts based on their source, with varying degrees of spending reluctant .
=> "mental accounting" is introduced in contrast with the econmic theûoy
P4: Default payment is presented: leverage the sense of ownership -> exploit pleasure of gains and the pain of losses.
=> Another type of payment: default payment
P5: Marketers apply this insight. Example: Italian telecom company reframed it retention offer: giving 100 free calls to customer -<> customer reluctant to forfeit
=> Late payment and its application.
P6: Defaults effective when individuals are apathetic, bewildered. However, deception can erode trust and backfire.
=> Caution when applying defults
D C C B A |
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