| How many times have you heard that curb | | | | consumers think, but recent experiments in |
| appeal is half the sale? Why is it that certain | | | | neuroscience have captured the full attention of |
| ethnic groups are so keen at using tiles and | | | | Corporate America and Corporate Japan. New |
| marbles, whereas others prefer hardwoods and | | | | scanning techniques are making it easier to |
| plaster? What's the scoop behind the trend of | | | | determine how our minds work and creating |
| new construction - more bedrooms, more | | | | hopes in the corporate world, that companies can |
| bathrooms, higher ceiling clearance? What makes | | | | finally figure out how consumers are wired so as |
| a neighborhood trendy? Why is it that fashionable | | | | to establish new connections with customers. And |
| colors, all of a sudden, are no longer fashionable? | | | | the field of real estate sales is at the forefront of |
| In essence, what is it that drives innovation and | | | | this scientific research. |
| change in real estate? | | | | The breakthrough behind all this is the |
| Gianni Versace (1946 - 1997), perhaps the most | | | | development of functional magnetic resonance |
| famous Italian stylist and designer of | | | | imaging or 'fMRI', the latest in neuroimaging |
| contemporary times, and Andy Warhol (1928 - | | | | technology, which displays not only the structures |
| 1987), one of the major figures of the American | | | | of the brain but also how they actually function |
| Pop Art movement, both had an innate | | | | by measuring blood flow. And the corporate world |
| knowledge of one of the most profound tenets | | | | is particularly interested in how neuroimaging can |
| of economics, that is the production of wealth | | | | be applied to study empathy, trust, deception, |
| comes not simply from labor or raw materials or | | | | emotional communication, body language and |
| even intellectual brilliance. It comes from new | | | | generally speaking all issues that are central to |
| ways to give people what they want. By | | | | human existence and interaction. Decision-making |
| matching creativity and desire, the economy will | | | | is, of course, at the top of the list. |
| renew itself. Thus, it is imperative to abandon | | | | Research, especially in real estate, indicates that |
| prejudices regarding the sources of economic | | | | consumers love novelties and, what's more, can |
| value. | | | | create novelties. Consumers are not mere |
| It follows, that manufacturing and technology | | | | passive recipients of goods and services but, |
| generate wealth only when they make matter | | | | rather, active producers as well. The reason is |
| and information serve human desire. Desire is the | | | | that at the basis of production and consumption |
| true source of economic value, and the motor | | | | there is human imagination and desire for novelty. |
| behind demand. So, to exploit any market - being | | | | Furthermore, when people actually 'own' novelties |
| fashion design as in the case of Versace or Pop | | | | in the form of goods, they set about to convince |
| Art as in the case of Warhol - since people want | | | | others that the possession of such novelties |
| pleasure, those who bring pleasure will make the | | | | shows that they have achieved a higher status, |
| economy go, because what is bringing pleasure is | | | | and that if others were clever enough to do what |
| anticipated status enhancement. This rule of | | | | they did or to possess the same things that they |
| thumb applies all the more in a big-ticket industry | | | | have, then the others too could achieve high |
| such as real estate. | | | | status and enjoy all the good things that come |
| Contrary to what most of us believe, humans do | | | | from it. |
| not make rational decisions, at least not | | | | The continuous interaction between desire and |
| pre-eminently but, rather, their conclusions are | | | | demand on one side, and production and supply |
| rooted into deeper sources of motivation located | | | | on the other side, is what rejuvenates and |
| well within the realm of sub-consciousness. | | | | regenerates real estate markets through trends |
| Marketers already seem to know a lot about how | | | | and innovation over and over again. |