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Do Consumers Really Have A Panoramic View of The World?

by abugah
4 replies
While writing copy for the financial sector, I came across some interesting statistics...


1. Sometime back the stock market in the United States represented 47.8% of the value of all stocks worldwide. The stock markets in Japan and the United Kingdom represented 26.5% and 13.8%, respectively, of the worldwide stock market. Yet, U.S. investors were 93% invested in U.S. stocks.


2. Another striking tidbit comes from Atlanta, Georgia, home of Coca- Cola. A past survey found out that even though Coke was a worldwide company, investors living in Georgia owned 16% of Coke.

This clearly shows a bias for home products, the known or the familiar.

Who has found this kind of prejudice?

Can this be a safe conclusion that generally people do not have a panoramic view of the world?
#consumers #panoramic #view #world
  • Profile picture of the author Pusateri
    Yes, it is a safe conclusion. You can safely assume most people are insular and myopic. Those are the defaults of humanity. The familiarity bias is almost always at play.
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    • Profile picture of the author Ross Bowring
      Originally Posted by Pusateri View Post

      Yes, it is a safe conclusion. You can safely assume most people are insular and myopic. Those are the defaults of humanity. The familiarity bias is almost always at play.
      To keep with the financial angle...

      Porter Stanberry's "End of America" has a section in their copy where they explain "familiarity/normalcy bias" and the weight of research supporting it.

      Here's an excert...

      "I know many of my friends, colleagues, and family members are still in serious denial.

      In the world of psychology, they call this the "normalcy bias."

      You see, the normalcy bias actually refers to our natural reactions when facing a crisis.

      The normalcy bias causes smart people to underestimate the possibility of a disaster and its effects. In short: People believe that since something has never happened before... it never will. We are all guilty of it... it's just human nature.

      The normalcy bias also makes people unable to deal with a disaster, once it has occurred. Basically... people have a really hard time preparing for and dealing with something they have never experienced.

      The normalcy bias often results in unnecessary deaths in disaster situations. For example, think about the Jewish populations of World War II..."

      Porter and the gang don't want readers to default to this bias for the "known." By explaining it they allow the reader to feel smarter than the average bear for knowing what it is in the first place... and then not falling for it like the suckered masses.

      --- Ross
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      • Profile picture of the author DGFletcher
        That seems like it might be a great angle to have on making money if you can use it correctly. On the other hand, I remember scammers that would track your IP and tell you that 'Jane P.' from <your town> really liked <tooth whitening, weight loss>. That was really kinda annoying.

        If anybody has any info on how to use this to help make money without being scammer-y, that'd be great.
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  • Profile picture of the author centerforkaziboralimited
    Exactly, that should be the conclusion. Familiarity breeds biasness. Humans choose to go miles to engage in what they could at their doorsteps. Most of us are indeed insular and myopic.
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