In a 2008 paper on neuroeconomics, Carnegie Mellon University economist George Loewenstein said: “Whereas psychologists tend to view humans as fallible and sometime even self-destructive, economists tend to view people as efficient maximisers of self-interest who make mistakes only when imperfectly informed about the consequences of their actions.” This view of humans as completely rational […]
Author Archives: Paul Harrison
Competition… at any cost? So, Heinz has made a bit of a fuss about the growth of private-label or in-house brands in our major supermarkets. According to Fairfax publications, “William Johnson, executive chairman, CEO and president of the $US16.4 billion Pittsburgh-based Heinz, told investors the company has had to rework its strategy in Australia to […]
The move by Qantas CEO, Alan Joyce, to ground the Qantas fleet around the world, will have caused significant damage to the brand, regardless of his motives for doing so. To some degree, you could argue that the Australian public were conscious of the ongoing negotiations with pilots, engineers and baggage handlers (although knowing this level […]
The mining industry, led by the Minerals Council of Australia, has written to members asking for funds to under take a new advertising campaign to attack the carbon tax. In his letter to members, Minerals Council chief executive Mitch Hooke says that in current day Australia, major policy battles are fought and won in the […]
Consumer confidence has fallen by 8.3% to its lowest level in two years, according to the Westpac-Melbourne Institute Consumer Sentiment Index. The drop has been connected to speculation about the impact of the carbon tax, with Treasurer Wayne Swan calling on Opposition Leader Tony Abbott to “stop scaring the consumers”. Retailer David Jones last night […]
The executive director of the venerable New York Times has come out fighting against Facebook and other social media. Bill Keller has joined the conga line of commentators decrying the end of friendships and knowledge as we know it by arguing that much of the interaction on social media sites is “reductive and […]
Politics is a tricky business. Being in government is even trickier. But it should be pretty simple. It’s like any other business, isn’t it? It’s all just marketing. You find out what they want, you tell them what you’re going to do, and then you give it to them. So is it […]
Despite a clear and substantial increase in the amount and quality of information available to the modern consumer through globalisation, and communication advances, we still don’t always make decisions that are in our best interests, particularly in the areas where politicians and lawyers seem to spend a lot of time, such as financial, telecommunications, […]
When it comes to branding and advertising, much of what we are exposed to creates only marginal difference. But even small differences can tip the balance toward a particular choice, and plain packaging of tobacco products will make this kind of difference. This is because small differences build up into larger differences, and […]
Does anyone have a sense of déjà vu? From mid 2007 to early 2009, the Telecommunications Industry Ombudsman (TIO) received an increase in complaints from consumers of more than 40 per cent. More than a third of the complaints to the TIO were related to poor customer service or complaint handling experiences. […]