People, Preferences & Prices: Sequencing the Economic Genome of the Consumer Mind

Author(s): Eugene Galanter, Howard Moskowitz and Matthias Silcher

DOI: 10.2174/978160805249311101010156

The Economics of Personal Distance: How Many Miles is a Phone Directory Ad Worth?

Pp: 156-165 (10)

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Abstract

SHS investigation development is considered from the geographical and historical viewpoint. 3 stages are described. Within Stage 1 the work was carried out in the Department of the Institute of Chemical Physics in Chernogolovka where the scientific discovery had been made. At Stage 2 the interest to SHS arose in different cities and towns of the former USSR. Within Stage 3 SHS entered the international scene. Now SHS processes and products are being studied in more than 50 countries.

Abstract

We see that through proper messaging it is possible to change the distance that one will travel for a service. This distance comes from the ‘scoping’ exercise. Typically the distance is quite small. Doctors and lawyers show the longest distances, but they are simply a few tenths of a mile longer than auto repair shops, restaurants, etc. Fascinating is that despite the differences among the six topics being scoped, the basic relation is the same between interest level and miles of traveling means the same increase in interest generates a more or less specific increase in miles. The only exception is the plumber, because the plumber comes to the customer and not the other way around. When the professional comes to the customer a little change in interest goes a much longer way than when the same change in interest occurs for doctors, lawyers, and other individuals to whom the customer travels.

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