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More of the findings of the recent studies in behavioral economics:
Webers law: A change of stimulus is more emotional (and more motivational) according to the base. An example, with obvious applications : Most subjects tested were inclined to drive across town to save $10 on a $20 item, for example, but not to save $10 on a $500 item. If you aren't going to lose that sale on a thousand-dollar couch over $10, obviously you are better off to concentrate on the other benefits of the couch in your sales pitch.
Familiarity Fallacy: Economic choices are often made due to familiarity, even when the choice is demonstrably worse ("But I always shop there!"). This little tidbit of research says that we need to get the customer in the door, and used to coming to our business. If they are comfortable with us, they won't expect or demand the best deal.
This finding of behavioral economics is fascinating and useful. Just mentioning the year 220 A.D. will result in earlier guesses when people are asked when Ghengis Khan was born, versus mentioning the year 1600 A.D., even when the comment is in no way related to Khan. This tendency to "anchor" was found in the economic realm as well. Mention $300 as the value of an item, and all subsequent negotiation or discussion will revolve around that.
The implications in economic decision-making are obvious, and are being studied. It may seem that an item is worth whatever it is worth to that particular customer, but humans are never so logical when it comes to valuing things. Why is it possible to get $99 for an e-book online that has roughly the same content as a $10 book in the bookstore? Perhaps it is partly due to the $500 value that was thrown out there for the book and "bonuses." That makes $99 seem cheap, doesn't it?
People consistently estimate the value of things to be higher if they "own" the items in some way, even if it is only temporary possession. The research done to prove this was interesting, but I saw this phenomenum used all the time by traveling salesmen on the busses in Ecuador. A product was thrust into your hands, and after the ten-minute sales pitch, you had to pay or give back "your" item.
You should always bet $10 to win $20 on the toss of a coin, but for many, the fear of regret (Oh, I lost $10) outweighs the desire to profit (I won $20!). The applications for this facet of human nature have to do with how you present things. If the person has a strong tendency towards regret aversion, you will be more likely to make the sale if you suggest what will be lost if he doesn't buy.
I saw this one all the time when I worked at a casino. The loss wasn't real until the player got up from the table, so instead he would stay, and lose more. People regularly hold onto losing investments solely
The science of behavioral economics is a growing field, with more studies being done every year. It is new, and has not had much formal transference to the world of business yet. Still, if you look closely you can see the applications that are possible.