CHAPTER 13

How Do Buyers Make Decisions?

Are They Conscious?

Science tells us that we live our lives mostly unconsciously. We fly on automatic pilot. Scholars tell us we think with two systems, System 1 and System 2. System 1 is also called “thinking fast” and System 2 is called “thinking slow.” Nobel Prize laureate, Daniel Kahneman, popularized these terms.1 When we “think” in System 1, we are likely to make some mistakes because we have unconscious biases. We are also told that we buy emotionally and then justify rationally. This has huge implications in our lives. We think we are thinking but we are making decisions before we think about them, that is, cogitate. The same thing happens during interviews and salary negotiations.

Anchoring

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