The applications of this fallacy are obvious, if you look. For example, perhaps rather than giving away tickets to those "get rich" seminars, organisers would get better attendance by putting their "$100" tickets on sale for $3. Just having paid something makes people more likely to attend, with added bonus of getting some money up front.

Extremeness Aversion

People avoid extremes. Given a choice of televisions costing $300, $500, and $700, for example, not many choose $700 one. But if you add a $1200 television to their choices, more will then choose $700 one, because it is no longer most expensive one.

The last example suggests some obvious applications of this new science of behavioral economics. In fact, if you look closely at information coming from these studies, you can find a lot to help your sales and marketing efforts. You'll find more results of these studies in Behavioral Economics: Part Two.

According Eric Binning at Encompix, “By automating sales and engineering tasks Encompix ETO Configurator helps speed up response to quotation requests, free up engineering personnel, decrease errors and rework, and reduce overall lead time.”

Encompix (www.encompix.com) has filled manufacturing software requirements of Engineer-to-Order companies since 1992. The company name reflects our commitment to developing business application solutions that encompass complex areas of project-based and job-based manufacturing.

Encompix provides ETO manufacturers with a competitive advantage by improving bottom line results.

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