1. The Smart Consumer
ELL 실용 비즈니스 영어

2. Warm Up
1. What tricks have you noticed businesses using to get you interested in their product?
2. What kind of tricks are successful for you to take notice of a company or their service/product?

3. 1. Priming
2. This is done by ‘priming’ or readying your mind for a related concept. For example, if you watch a violent movie your mind is more ready to find the word ‘cruel’ rather than the word ‘delicious’. Companies use this as a way to influence consumers. If an advertisement has money in it (coins or bills) the consumer may think more about the cost of the product. If, for example, there is a red car, the color ‘red’ will prime the consumer to think of style or speed.

4. 2. The Decoy Effect
6. The company will create ‘deals’ to make it appear like customer is getting a lower price. This is a decoy. For example, there are three prices for a newspaper. One is just the online newspaper for $59, one is for the newspaper and the online newspaper for $129 and one is just for the paper for newspaper for $129. As the last two prices are the same but one includes a deal (the online paper included), consumers will think they are getting a deal.

7. 3. Illusion of Scarcity
1. Many advertisements stress that there is a limited number of what you want to buy remaining. For example, when you reserve a room online it may warn you that there are only 2 rooms left and to book as soon as possible.

8. 4. Loss aversion
5. This trick is used when companies give free trials. Humans tend to feel worse about a loss (losing $5) than a gain (finding $5).
A company advertises something for free and the customer will try it so as to not miss out on an opportunity. Once hooked on a product the consumer does not want to give it up.

9. 5. Reciprocity
3. This concept could be called ‘you scratch my back, I’ll scratch your back’ or (Latin) ‘Quid pro quo’. When someone does something nice for you or acts towards you in a kind manner, you are more responsive to be kind back to them. For example, when waiters leave mints for customers with the bill or even draw a happy face, customers are more willing to leave a bigger tip.

10. 6. Anecdotes
8. Stories stay with us longer than statistics. When there is positive word-of-mouth about a company we tend to remember those longer than numbers. If the company can create positive stories about themselves or their product or service, it may increase sales.

11. 7. Anchoring
7. This tactic is used to show what a deal people are getting by creating larger numbers and showing the discount they can get. For example, if you buy a t-shirt and the discounted price shows the original price was $100 and now it’s $50, would you be more willing to buy it seeing as how much of a discount you are getting? The original price will ‘anchor’ your mind to thinking that usually t-shirts sell for $100 and at a 50% discount you are getting a good deal. However, would you spend $50 on a t-shirt if you did not see the discount?

12. 8. Heuristics higher cost = better quality
4. To help make a decision, we have basic thought patterns which help us make the decision process easier. When in a new situation, you use your heuristics of previous situations to know what to do in a new situation. In a new class, you will come in, take a seat, listen to the teacher.
higher cost = better quality
well-known brand = better quality
lower cost = lower quality
unknown = lower quality

13. What technique are they using?
1. A woman wearing a red dress is judged as more attractive than a woman wearing a green dress. 2. The server is touching your arm and asking about your day. 3. When you book a hotel room and use agoda.com, the site flashes that there are only 2 rooms left. 4. Your online virus software flashes on your computer screen to sign up for a 30-day free trial. 5. Online reviewers post feedback that the lawyer they used did not represent them properly and to avoid using that lawyer because of the poor quality. 6. Most restaurants will create a very expensive dish knowing that customers won’t buy it, but customers will buy the second most expensive dish. 7. The sales person says to you that you have come to their shop on a good day because today that $2500 laptop is only $ A jewelry store is selling something expensive (gold ring 1 = $155, gold ring 2 = $575). You think “The second gold ring is more expensive, therefore it must be better than the first ring.”

14. mirror effect respect reflection practice feel name exercise remember
hardest

16. Discussion 1. What life hacks / psychological tricks do you know?
2. Which psychological tricks do you see businesses using?
3. Which psychological tricks have you fallen for?
4. What is the best way to make you feel better in a short amount of time?
5. Do you know any tricks to studying to make studying / test taking easier?