Nafia Hussain

@nafia
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Facebook uses one of the concepts of Behavioural Economics. Can you guess where, in this 30s clip, has Facebook applied it?
#BehaviouralEconomics

Here's how Igloo used the Peak-End rule of Behavioural Economics in their product.

Igloo's cone ice-cream has a chocolate filled tip towards the end. This leaves us with a delicious taste of chocolate when the icecream is almost finished.

People remember an experience based on 2 things. 1 of them is how it made them feel towards the end. We remember things positively if the end was good. Igloo gave us a delicious taste towards the end and we remember the brand fondly. #BehaviouralEconomics

Which of these 3 pizzas offers more value for money? The large one?

This is a classic example of Decoy effect.
This is a pricing strategy businesses apply to make us buy the high priced product.

For a mere Tk 100 increase, customers find the large pizza more appealing. The medium sized pizza makes the large sized one look like a better deal. It influences our choice in a subtle way. So sometimes, we need to 'think slow' & ask-"Do I really need the larger sized one? " #behavioralecononomics