Thursday, September 22, 2011

Relaxation Tends to Waste the Times


Researchers at Columbia University Business School, led by psychologist Michel Tuan, recently managed to find why people tend to spend more money when they're relaxed. The findings provide some insight into why a new generation of casinos so different from the older.

The changes seen in Las Vegas on top of all other places. Instead of a low ceiling, hidden from sight lines, no clock and the claustrophobia-inducing setup, new construction was built so that gamblers can relax in it. For the record, both make more money.

For years, casino owners have struggled to build the floor of their money-making enterprise in accordance with appropriate specifications, intended to confuse, disorient them, and make them nervous. The thinking is that these measures will increase revenue by keeping more people playing.


The latest generation of casino is built with high ceilings and simple layout that clearly shows where the exit. Marble, a bouquet of flowers and soothing music takes the place of the mechanical voice chat busy and older casinos.

The reason why this change occurs is that people tend to spend more when they feel comfortable in the environment, relaxing fun. In addition, psychologists say that this setup encourages players to take irrational risks in games of chance, wire reports.

Tim Pham who gives an explanation why this is happening in a paper published in a recent issue of the Journal of Marketing Research. Even when accounting for the emotional state, relaxed people tend to spend more money in a more reckless than their counterparts who are stressed or uncomfortable.

This study also shows that this is why the luxury retail stores to support an open design, with soothing music, a big empty space filled with comfortable chairs and so on. All these factors contribute to make the customer feel comfortable, even if the stores spend a lot of money to rent the space they are not fully used.

From this perspective, the purpose of store owners who cradles as many people as possible to spend as much as possible in their stores. If they would create a labyrinth design, covering the products after various corners and niches, they will not really succeed in selling too much.

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