Part 5/8:
In the second story, the speaker discusses the importance of perception and visual comparisons in decision-making. They illustrate this with a visual example of two squares that appear differently colored based solely on their context, emphasizing that our judgments are often influenced by the relative rather than absolute terms.
The speaker cites a project involving a coffee chain that successfully used the “decoy effect” to influence consumer choices. By introducing a medium coffee for just $6 alongside a small for $3 and a large for $7, they created a decision-making environment that incentivized purchasing the more expensive coffee options—capitalizing on the innate human tendency to seek perceived value.