Now, some of those thoughts are helpful for us in our every day lives.
They help us survive, they help us protect our children.
They do all kinds of good things for us.
Some of those thoughts however, are rather called maladaptive.
Which means, they used to help human beings survive
in the harsh environments in which, human beings have spent most of their existence.
But they're not particularly helpful now.
In some of those adaptive and maladaptive thoughts
are going to be useful when we start making pricing decisions.
So, here are just a few of them to kind of set your intuition.
One is called our fish brain and
I’m going to talk about that in some detail momentarily but maybe one that you
can relate to right away is most people's taste for sugar and fat, right.
Think about what would sound good to you right now.
Maybe a piece of chocolate?
Maybe a thick juicy steak on the grill, right.
That could be good.
Human beings like sugar and fat.
The reason we do in general, is because sugar and
fat signal high caloric content in food.
It means the food's got a lot of calories in it.
Now that's a really good thing,
if you're walking across the frozen ice bridge between Alaska and
present day Russia which was the ice bridge from Asia over to North America.
And you're trying to find food and you find a berry that tastes very sweet.
If the berry tastes sweet, that means it probably has a lot of calories in it and
it's a good thing for you to eat and survive.
And meat that has a lot of fat in it, taste good why?
There is a lot of high calorie content in that and that would help you survive.
In today's world, not so much right, wouldn't be nicer.
If a big bowl of kale tasted as good as some nachos with cheese on them, right.
Or some chicken wings.
Mm-hm, kale, chicken wings.
What do you think most people are going to grab?
They're going to grab the high fat food because their
ancient brains are telling them, that's what you need to survive.
And this is going to come into play, not so much the taste for sugar but
certainly the fish brain, certainly something called
pattern confabulation are tendency to see patterns in everything.
And another effect called frugal heuristics which means,
trying to make very quick decisions in presence of lots of data.
I'm not going to talk about those so much because is going to be with us,
right after me.
And she's going to talk about some of the psychology related to
those particular concepts.
But I do want to talk momentarily about our fish brain because it looms large in
pricing.
What is the fish brain?