The Country-of-Origin Effect Read online You’re thinking of buying a new pair of running shoes. Usually, you go with Nike. But this time, you’re considering Umbro (a lesser-known brand). Then you find out: Umbro makes their shoes in the UK. Nice. It's always good to find locally made brands. You’re willing to pay a decent price. But the next day, you hear Umbro are moving production to South Korea. Now, would you still pay the same? Probably not. That’s exactly what these researchers¹ found....

The Anchoring Effect Read online In the 1970s, Tversky and Kahneman¹ ran a simple experiment. They asked people: "What percentage of African countries are in the UN?" But before answering, participants had to spin a wheel with numbers from 0 to 100. The wheel was rigged to land on either 10 or 65. Then came the important question: "Is the actual percentage higher or lower than that number?" After that, participants gave their best estimate. Here’s what happened: People who saw 10 guessed 25%...

The Illusion of Choice Read online Give people $1 and two identical packs of gum. Same flavour. Same price. What happens? Most people aren't interested. That’s what Kim, Novemsky, and Dhar¹ found in a South Korean experiment. They gave participants ₩1,000 and two gum options, both priced at ₩630. Only 46% bought anything. But then they did something clever. They made the prices slightly different: ₩620 vs. ₩640. Now 77% decided to buy. Same gum. Slight price difference. Big impact. Why? When...