keannu
VIP Member
- Joined
- Dec 27, 2010
- Member Type
- Student or Learner
- Native Language
- Korean
- Home Country
- South Korea
- Current Location
- South Korea
1. Does "carrier" have the meaning of "insurance company"?
2. What does "The gain didn’t matter as much as long as there wasn’t a loss." mean? Say, for instance, your house valued at $200,000, but the sales prices rose by 10%, making it $220,000, so does it mean the difference $20,000 was not that big?
mo41)For most of us, the pain of losing a dollar is far more powerful than the pleasure of winning a dollar. Marketing and advertising executives follow this principle. A study of insurance policies, for instance, found that consumers switch companies twice as often when their carrier raises rates, as opposed to when the competition decreases its rate by the same amount. In everyday life, people make poor choices
when they try to avoid loss. Many home owners looking to sell their houses right now would rather keep them on the market for an extra year than drop the price to $ 5,000 less than they paid, even though keeping the home for an extra year will surely cost them more than $ 5,000. The idea of a loss was just too painful for them. In contrast, home owners facing a gain on a house often sold too early and for too
little. The gain didn’t matter as much as long as there wasn’t a loss.
2. What does "The gain didn’t matter as much as long as there wasn’t a loss." mean? Say, for instance, your house valued at $200,000, but the sales prices rose by 10%, making it $220,000, so does it mean the difference $20,000 was not that big?
mo41)For most of us, the pain of losing a dollar is far more powerful than the pleasure of winning a dollar. Marketing and advertising executives follow this principle. A study of insurance policies, for instance, found that consumers switch companies twice as often when their carrier raises rates, as opposed to when the competition decreases its rate by the same amount. In everyday life, people make poor choices
when they try to avoid loss. Many home owners looking to sell their houses right now would rather keep them on the market for an extra year than drop the price to $ 5,000 less than they paid, even though keeping the home for an extra year will surely cost them more than $ 5,000. The idea of a loss was just too painful for them. In contrast, home owners facing a gain on a house often sold too early and for too
little. The gain didn’t matter as much as long as there wasn’t a loss.
