Real Case Stories

As of 2015, Costco was the  second largest retailer in the world  after  Walmart  and its stock had soared more than 5,000 percent since going public in the mid-1980s. However, this store doesn't install signs in its aisles. It rather lets it's customers wander in the store, looking for the things they intend to buy while browsing through stuff that they "notice" on the way.  Poor customer experience, right? Wrong! Costco, in fact, has mastered the psychology behind shopping.  Costco constantly changes the location of its top-selling products - such as light bulbs, detergent, and paper towels - forcing the customers to search storewide. And as logic dictates, t he more time consumers spend ambling around the store,  the more likely  they are to spend. Costco rotates upward of 25% of its hard-goods and its products. The result is that, of the 3,600 items for sale, a full 1,000 may be offered only for that particular moment ...

Mail was the internet before the internet. The mail-order firms like Sears were able to penetrate underserved rural areas by leaning on the then-new infrastructures, such as the railroads that linked far-flung regions of the country.  One of the first mail-order launched in 1872, sixteen years before the famous Sears catalog , was Montgomery Ward.  Aaron Montgomery Ward  conceived of the idea of dry goods mail-order business in Chicago, Illinois, after he observed that rural customers often wanted "city" goods. The first catalog consisted of an 8 in × 12 in (20 cm × 30 cm) single-sheet price list, listing 163 items for sale with ordering instructions for which Ward had written the copy. By 1883, the company's catalog, which became popularly known as the "Wish Book", had grown to 240 pages and 10,000 items.  In 1888, Richard Wareen Sears started a business selling watches through mail order catalogs. The ...

When we look at a scene, our eyes move around quickly, 70 to 100 times a second , locating anything noteworthy.  This visual input is translated into a mental memory map by our brains. These quick eye movements are called saccades .  Saccadic movement is what causes Change Blindness :  a perceptual phenomenon that occurs when humans  fail to detect seemingly obvious changes to scenes around them .  Example of images that can be used in a change blindness task As a result when we see we unconsciously focus on areas that our evolutionary biases deem important (often anything moving fast , anything that looks like a living thing that may be a potential friend or foe). The brain automatically fills in the rest of the details from its memory map — often disregarding details that it thinks it has seen before.  "The Door Study" a 1998 study by Daniel Simons and Daniel Levin is the one of the most popular study to demonstrate how change b...