Emotions vs. Decisions

Today Frugal wrote:

The bottom line is when you find a business that is trying its best effort not to give you any possibility of doing apple-to-apple comparison, you should know what it is up to.

Don’t forget about emotion!  Emotion is the single biggest factor affecting people’s purchase decisions.  The unfortunate thing is that emotions can be hard to get under control because they are instantaneous (since they originate in one of the most primitive parts of the brain).  Basically, your emotions kick in right away, and begin changing your decision making ability.

Take for instance, the standard couple investing in their first home.  They have no idea how the system works.  Furthermore, the banks, lawyers and real estate agents are usually behind schedule, so the documents don’t show up at the lender until the last minute.  Rarely do the lenders explain all their fees before-hand, and so… the couple finds themselves sitting in an office at the bank faced with a pile of service fees that they don’t understand.  And, the deal on their new home closes in a few hours…

They have options, I guess.  They could not sign the papers, but then they would risk losing the house that they’ve been dreaming about living and starting a future in… or they just bend over, take the fees and move on with their lives.

So, often times, the stores, banks, etc have the upper hand in this type of negotiation.  This is a major focus of advertising as well.  1) Develop an emotional attachment in the prospective customer for your product and 2) Develop a feeling of need in the customer (can you say iPod), so they’ll pay almost anything for it.

Of course, keeping yourself out of this trap is easier said than done!

NG

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