sometimes when a cooling off period is a wise choice, a person would use _____. course hero

What is the meaning of cooling off period?

Definition of cooling-off period. : a period of time that must pass before someone can do something or before an agreement becomes final. The law requires a cooling-off period between the time a gun is purchased and when it may be possessed. The workers have agreed to a 30-day cooling-off period before they strike.

What's wrong with cooling-off periods?

The problem with the current cooling-off periods is that they operate after a customer has taken ownership of something or signed an agreement. Our research finds cooling-off periods simply don’t overcome many of the inherent biases of human behaviour.

Do cooling-off periods overcome biases in consumer behaviour?

Our research finds cooling-off periods simply don’t overcome many of the inherent biases of human behaviour. Dr Josh Newton and I, from Deakin University’s Centre for Employee and Consumer Wellbeing, tested how 759 consumers responded when presented with cooling-off and opt-in alternatives as part of an online survey.

Should you offer a cooling off period for customers?

When customers are offered a “cooling off” period, they don’t change their minds, even when the alternative is considered subjectively better, our research finds. We also found that some consumers (around 30%) only responded when contacted by the seller and asked if they would still like to opt in.

How an opt-in clause works

The opt-in clause works in two parts. It’s based on the principle that we should give consumers, under certain circumstances, more time and resources to think about the consequences of a purchase.

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