The ‘HOW’ Factor : Why Experiences Trump Everything Else

“Ease of use may be invisible but its absence sure isn’t” – IBM If you have ever lost anything (who has not?), you know what follows next. The pain of losing stuff is undeniable. Unfortunately, what can add salt to the injury is the unpleasant task of filing for a claim. (I, for one, can…

Growing or Thriving?

The term ‘growth’ has always been associated with an upward movement. In literal terms, it refers to “an increase in the size or the importance of something” (Cambridge Dictionary, n.a.). In economics, growth is a subject area in itself. Primarily, economic growth is a rise in the production of goods and services in an economy…

The Economics of Having an Edge

Saudi Arabia is a desert country. Yet it imports sand from Australia. What’s the reason behind this bizarre arrangement? The sand Saudi Arabia has is not the right kind to build concrete for its towering skyscrapers and fancy resorts. These are too small and too smooth to be much use for construction; you might as…

The Clock, The Consumer and The Consumer’s Folly

The cornerstone to the foundation of economics is the assumption that consumers are rational individuals and make pragmatic decisions. But, therein lie some core behaviour traits of humans, who remain irrational consumers, which urge them to act in ways vastly contradictory to logical expectations. A well-known example of consumer irrationality is the Zero Price effect…

The Invisible She

Let’s begin with a hypothetical proposition. What if Aristotle had a sister, who equally matched him in will and intellect? Would she have gotten the same opportunities, recognition and fame as her brother?… Maybe not! The patriarchal cultural and social norms prevalent during the Greek civilization would have proved to be major hindrances to her…

IKEA Effect: When Labour leads to Love

Have you ever breathed a sigh of relief, smiled wide and felt a sense of accomplishment after completing a puzzle? Not just puzzles, have you ever baked a cake and ended up valuing it more than a ready-made one? If your answer is yes, then you have experienced what one calls, “The IKEA Effect.” As…

The Sunk Cost Fallacy

  “If you’ve ever held on to a pair of shoes that make your feet ache or a pair of pants that no longer fit you for no other reason than you paid a lot of money for them, you’ve experienced the sunk-cost bias.” In both business and personal finance, fiscal responsibility is constantly preached…

The Behavioral Signs of the Recession

One of the most unconventional ways to know if we are headed towards a recession is by looking at a baby’s bottom. Yes, that’s right. Studies find that parents end up changing baby diapers less frequently in times of a recession, which in turn causes an increase in the sales of baby rash creams. According…

All you need to know about the Global Recession of 2020

During the period between July 2008 and June 2009, major economies suffered a domino effect of the US recession after the country’s housing market collapsed. It was the most severe economic crisis witnessed in the US since the Great Depression in the 1930s. In the 10 years that followed, we saw the world enjoying a…

Mind-ing One’s Business

Segmenting the market is passé- today, it’s all about segmenting the brain!    Thanks to Neuromarketing, regions of the mind are now the battlefields where modern brand wars are fought. Coke versus Pepsi is perhaps the best example of such a collision. In 2004, Simon McClure and his associates conducted a path-breaking experiment studying consumer…