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.
3 comments:
Guess that's what they mean when they say be passionate about your work, otherwise there wouldn't be any buyers!
Excellent practical explanation ! and a slightly new derivation as well.
Excellent simple, practical explanation. Slightly new derivative thought as well . . . !!
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