Brazil’s level of anxiety is relatively low (among the 10 markets we’ve studied, only Australia and China rank lower), since the country is having a good economic moment despite the global downturn. However, Brazil hasn’t altogether avoided the psychological repercussions caused by a global crisis like this, something that’s showing up clearly on the real estate market.
Nowadays, go to any developer and you’re likely to be offered some kind of gift—a credit for a furniture store, tickets to Europe, etc. The value of these gifts can reach US$6,000. Wouldn’t it be more logical just to reduce the price of the property? But this is not how consumers’ minds work: Professionals in this market say that gifts change how potential buyers think about the business, with gifts making them see the house as more valuable, not more expensive.
These companies realize that in a crisis, value is bigger than price. Consumers feel that it’s smart to “gain” something when nobody is giving anything away. Which doesn’t make much sense, but that’s how people tend to see it. Brands that understand that the crisis is much stronger in people’s minds than in their pockets will manage this situation most successfully. –With the contribution of Felipe Senise
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