#113 - The funny ways we think about money

Man in the car paradox: When you see someone driving a nice car, you probably don’t think, “Wow, that person is cool.” Instead, you think, “Wow, if I had that car people would think I’m cool.” Do you see the irony? No one cares about the guy in the car. Have fun; buy some nice stuff. But realize that what people are really after is respect, and hum... See more

One of the things that price consultants have learned is that what consumers say and what they do are not the same thing.

The researchers traced the finding to the expensive = good stereotype: people reported expecting the drink to work better when it cost $1.89 versus $0.89; and, remarkably, the mere expectation fulfilled itself. A similar phenomenon occurred in a separate study in which participants were given a pain reliever before receiving small electric shocks. ... See more