Tuesday, April 28, 2009
The 9x Effect
9x effect is about a HBR article - Eager buyers and Stoney Sellers.
Ownership effect says that we value something more the moment we begin owning it. And the more we own it, the more we value it. This is a cognitive bias.
A buyer thinks that what he owns has a greater value than what he doesn't own. A seller thinks that what he sells has a greater value than what others sell.
Studies say that a buyer values his product 3 times more that what its value is. Same for the seller. So together there is a 3*3x or 9x disparity between the product that you own and the one
someone it trying to sell it to you. This is why selling is so darn hard.
According to the above theory, changing products is not a rational decision but an emotional one.
So not only the seller needs to present a rational case but rather an emotional case to convince the buyer.
Sunday, April 19, 2009
Thursday, April 2, 2009
Art Work as a Teenager
Art is like meditation. It requires patience and extreme concentration. What results is sheer pleasure and peace to self. I advice all small kids to get into art all the time. Considering shrinking (anorexic) attention spans, art helps to keep your faith in patience and perseverence.
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