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tv   Cross Talk  RT  November 24, 2017 6:30pm-7:00pm EST

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a spirit a frontier or an allegiant when we do so that you spend more what they're not doing is offering lower fares than before they're taking the existing lower fares and trying to make those less desirable as a way of effectively offering a fare increase for those who are willing and able to pay more the younger travelers people who are more price sensitive are simply going to stick with those lowest fares and get less than they did before alternately you know what you've got is a business model that's not really what you normally expect you're usually you expect to have businesses that are trying to offer more value at a lower price but in this case they're trying to increase the price by offering less value it's a little bit of a challenge and in fact in the rollout that united had they acknowledge that they lost nearly one hundred million dollars and there were initial attempt and the reason that united was losing money when they started doing this is simply because other airlines weren't doing it also so when they matched the price of american
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airlines or a southwest american and southwest offered a better value product american hadn't begun their base your economy initiative yet so they're bet is that now that american is offering the economy fares also they will be losing money but consumers do have a choice as we said southwest doesn't offer these fares neither does jet blue or alaska so when one of those carriers is a competitor in the market for your business you're actually going to get a better deal at the same price would you say this might be sort of a wait and see period for the airlines the holidays are coming up a lot of people in the air could this sort of be a beta mode for for these programs where we might see modifications after the holidays. well so delta started rolling out their basic economy fares in two thousand and twelve it's now across the system delta merican and united rolled them out this year and they've rolled them out broadly we have them now i do think that there is going to be some customer confusion especially as you have the once
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a year travelers traveling over the holidays because while it's really clear if you buy a ticket on an airline web site exactly what the restrictions are and what's going to happen people who buy it through online travel agencies don't always have as clear an expectation that said so there will be more confusion at the gate people who bring those carry ons and they're not allowed to have them they'll be facing penalties a lot of more on happy customers that's certainly something that we face because as i say depending on where you buy your ticket your understanding of the terms and conditions will vary tremendously do you see a possible rollback of this trend or at least an increase. in benefits to those buying basic economy take its because it seems like a bit of a gamble if you're competing against what is known as a budget airline that doesn't even have first class or business class in it and then your one of the major airlines and you're competing against that it seems as if you better keep your options open for rolling that back at some point if you're
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a little gamble doesn't work off work out. well funny lindsay funny of the one of the best values in travel is actually spirit airlines offers they don't call it first class but they have something called the big front seat that maybe about thirty bucks more it's literally just the bigger seat not the other benefits southwest in particular is actually the largest carrier of domestic passengers and they not only don't offer a basic economy where you can't bring a carry on bag they don't charge you for your checked bags or even have change fees so they use it is a gamble delta has had the longest and says it does contribute to their profits it works but not nearly to the extent that united and american have told investors to expect it to to benefit their bottom line i don't expect it to be rolled out there fully darn committed but i certainly think that it's an opening for competitive business models you know southwest and it's a real opportunity on the west coast for alaska virgin america and that combination
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as they continue to merge to frankly offer a better product than the largest carriers and hopefully one consumer business while some people might say look a better product would be more space in the cabin and if you want to charge me for you know charge me a higher price to check a bag that's fine but a nine hour flight hertz and the airlines it's getting tighter and tighter and tighter we've talked about it before on the show do you see that may be changing. well it's certainly the case so you know american airlines has said they're going to offer only thirty inch pitch in their new seven thirty seven max aircraft that's the distance from seat back to seat back and it's less than the current thirty one that they they and delta offer an economy and that's less than the thirty two that you're going to generally get on southwest so the seats are certainly closer together united just made clear that on their boeing triple seven they're going to join much of the rest of the world and have instead of nine seats across the cabin
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we're going to have ten seats like american does today so it is kill the case that airlines are doing what they call densification which really just means more seats in the same amount of space and by the way they also squeeze in seats not just by shoving them closer together but even by reducing the size of the lavatory so many inputs now in just planning your vacation it doesn't even matter if you're just bringing a backpack thank you so much for helping us out on those we got to bring you on again to talk about this growing problem in the united states gary left chairman and c.e.o. of miles and points consulting and the founder a view from the wing dot com thank you thanks lindsey. the internet has disrupted just about every industry but it significantly changed the way we shop our chief correspondent trinity child has has more on that from new york brick and mortar stores are closing out an epic pace putting the retail business at risk for the most store closures this year than ever before leaving many wondering what the
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future of shopping looks like. advancements in technology have made it easier for brands and customers to analyze and share information which is changing the retail landscape drastically but with the rise of the supersized each tailors like amazon and e bay more and more brick and mortar stores are having trouble competing so i think that their role is definitely changing right so it's not it's no longer sort of the of a constraint that where people have to shop right because almost anything as i. online now according to funk lobel retail and tech a total of nine thousand four hundred fifty two stores will be closed this year because the shift to online retail and other retail bankruptcies that beats out the previous all time high of six thousand one hundred sixty three stores closing during the financial crisis in two thousand and eight it's just easier to go ahead and. find what you want online from the stores that you like in order and get it sent to your door rather than going in trying stuff on the side and have time it's easy to go through different options and choices in prices in places online
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obviously from my couch or desk and many say that amazon has been the force behind the explosion of online shopping and according to forbes is now the third largest retailer in the world. yet wal-mart still holds the number one spot last year wal-mart's sales totaled in at four hundred eighty three billion dollars compared to amazon's one hundred thirty six billion but well wal-mart's online revenue summed up to a whopping fifteen billion dollars amazon was a staggering ninety billion but with the holidays just around the corner retailers are doing all they can to capture every dollar. whether it's customers walking through the door. or customer clicking on their website for example many stores are listing lower prices in store for some online products to drive traffic into the locations or the store sold out of a particular item for a customer and order it online right then and they're still generating revenue for the same company yet experts say that the brick and mortar stores are still an
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essential component to overall company success so the presence of online the online channel is drawing a lot of consumers creating a lot of competition for the offline starts to drive traffic however i think that the offline bricks and mortar stores your main and essential component of. driving purchases a millennial generation zeke roups agree while many of these younger consumers like to spend their free time online rather. in watching television both groups actually prefer in-store to digital shopping according to a two thousand and fifteen global study by c.b.r. a group out of thirteen thousand people between the ages of twenty two and twenty nine years old seventy percent of them prefer to do their shopping at brick and mortar stores and in some instances those who did most of their shopping online preferred to go into the store for big purchases if i'm going to make a really substantial purchase for anything i'm going to want to check it out in person i'm going to want to touch it feel it compare it talk to somebody that knows
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about it going to a store for that but if it's like you know random thing it's not a high threshold for money or something like that i'll just go and buy it online although it seems that brick and mortar stores are underperforming experts say retail locations now play a crucial role as an apartment source e-commerce not only allowing them to compete with amazon but also serve as additional distribution centers and pick up slots for online orders a center for returns and an opportunity to offer face to face customer service reporting and you're trying to teach others are taking. stay with us because next we'll hear from author and behavioral economist dan ariely on why we spend the way we do on the right track. here's what people have been saying about rejecting the night is yours is it actually just pull along awesome the only show i go out of my way to find you know what it is that really packs a punch oh yeah it is the john oliver of party americans do the same we are
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apparently better than blue nothing. to see people you never heard of love redacted the night president of the world bank so very. seriously he sent us an e-mail. asking that. she'll be. good to have been moved from the union depends on both the. with meters that they did with. the counselors a placenta i went up at a sauna we were meeting there. i. said my limit was speculation to me or the now which we have a hunk of the only. now at the five. but the council i don't know only for that matter i see let him to make what we have made already in the marrow have gone floating closer got bigger i've may. see you so when i went to.
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the village of collect she has been nicknamed sleepy hollow because for some unknown reason its local residents have found victim to sleep pathetic. troll. or do was just being able to choose. how he ran your initial. concern that separate them with the haitian sort of but i'm also going with the question you're still talking. to them had to put in the amount of sweet. smell is actually grown in grass from work to give to what we have or don't want to. let go of the wolf. this with all.
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the while his music. my sil in there did your pastels there of the. first. welcome to the wonderful world of blood donation. i'm here every three weeks to get my transfusion to be specific i receive immunoglobulin that my body gets and some bodies that i cannot produce itself around the world giving blood is seen as a symbol of generosity knowing does this because it helps people it's just that one of the side effects is that it helped this applies more burning people put their money on your car immediately after you get done half of all plasma based drugs today come from private companies and are produced from paid plasma smoke come from
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your own motor car and. one of the risks of pay donation in it then is prove that the frequency of pathologies is much higher in paid donations in it. if i was lying when i. moved over two years old he will go get the money from the federal and who runs the blood business. hey everybody i'm stephen ball task hollywood guy will suspect every proud american first of all i'm just george washington and r.v. to say this is my buddy max famous financial guru and we're just a little bit different i'm not. going up there oh no one knows up with all the drama happening in our country i'm shooting the road have some fun meet everyday
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americans home. and hopefully start to bridge the gap this is the great american people which. tween free shipping and major sales there's a lot of ways we justify spending the money we make but how did marketing tactics get to us so easily to talk more about this we spoke with dan ariely author of dollars and cents how we missed think money and how to spend smarter and his book he mentions how j.c. penney once attempted fair and square pricing which didn't work out so well cost in the retailer almost one billion dollars and then tells lindsay why take a look what happened is we have to think about how do people our sister value how
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do we decide what something is is worth and the reality is it's very hard it's very hard to look at that a piece of clove and say how much is this is worth so what do we do we look at relative value relative to what relative to past prices so if something used to be to cost one hundred twenty dollars and it's now seventy it looks like it's great a great deal if you just seventy what do we compare it to not very clear so j.c. penney for a long time had this relative comparison everything had a high starting point in the low discounted price and people have said to themselves not in an explicit way this is amazing value let's get it once the price was just fair and the regular price but without these high reference price people could not assist the value in the same way they couldn't figure out whether something is a good deal or not and they basically bought much much less now it's kind of an interesting thing that you can think about it is
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a mistake on one hand right if something used to cost one hundred twenty it's now seventy why is it a better deal than if it used to cost eighty but on the other hand it also says that it's really hard for us to evaluate things in a general way and we need help we rely on cues on your wrist ticks and different strategies to help us figure out what something is worse worth and there's lots of cues like that in other another example is the question of fairly. this imagine you come to visit me i live in durham in north carolina you come to visit me and you park. look for a quarter in your in your pocket for the parking meter you don't have a quarter and i passed by and you say hey do you have a quarter and they said yes i have a quarter of sell it to you for a dollar most people say i'm not interested i'm not going to spend a dollar for a quarter i'll take my chances with the parking authority but think about case number two the same thing you can you park you stop you don't have
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a quarter i stop buying you say excuse me do you have a quart and i say i don't have a quarter but there's a bank five blocks down the street if you want to run down fast as they can i'll come back and i'll give you quarters but if i run all this distance for you how do you feel about giving me a dollar now you feel very happy giving me a dollar now in every possible way you're worse off you have to wait for a few minutes you get sweaty coins but why are you happier because there was effort involved so many times we think we assess the value of what we get the reality is we use all kinds of irrelevant cues what was the historical prize how much somebody ran for us and those things help us figure out how much you're willing to pay for something that kind of explains why people who earn their money versus people who were handed their money have a different idea of the value or need the appreciation of that what should we be cautious about this neck in asm the free shipping mechanism we see by retailers free shipping but there is the surcharge on top of that that we don't see to
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circumvent the loss for the free shipping. yes absolutely so imagine the following case imagine sell you something small and shipping and together they cost five dollars in one case i say the shipping is free the thing itself is five dollars in the second case i say they each are two fifty in the third one they say this thing is free shipping is five dollars in all three cases the final payment is the same people feel very differently about those things the worse one is the one in which we don't get free at all we pay two fifty for shipping and two fifty for the product it's better to pay zero for the product and five for the shipping and the one in the middle that's the best one the best one is free product and five dollars for shipping in the one in the middle is that you get three free shipping
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now what that suggests is that the moment we have the word free it kind of pushes a hot button for us like an emotional map and we say if it's free how can we lose it has to be a great deal and then we go for it and and there's a little trick to fix it because the only thing you can do or one thing you can do is to ask yourself how would they behave toward this offer if it wasn't free if it was let's say twenty five cents and if you basically see that you would have behaved differently you say i have to drive all the way across town to get this free whatever if it was twenty five cents with a drive all that way and if you said yourself no i wouldn't do it for twenty five cents then don't even do it if it's free well sort of outstanding versus spending versus a few quotes while the amur send money up and costs too much saving versus spending a misconception people have when it comes to that you have some pretty interesting explanations on your part. well first of all we have to recognize that saving is
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very tough saving is about novices later it's about abstract versus concrete everything you have right now is concrete and it's now everything in the future is later and what exactly are you getting if i want a new bicycle now it's know if i'm saving five hundred dollars more for retirement what exactly am i getting and we need to recognize that those trade offs are novices later are things we don't do well in general we don't eat too well we don't exercise and there's lots of things about novices later that we fail on and if we need want to do better on those things we need to create rules for a one k. automatically reaction personal rules otherwise if we're going to have to face the decision every time will fail not every time but will fail way too often to pay yourself first of all it sounds like good old fashioned self-control something that's kind of hard to find right now it is great but great read dan ariely
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professor and author of dollars and cents how we missed think money and how to spend it smarter. for the holidays were inundated with trend forecasts for retailers all over the world and one place to learn about that is that c.e.o.'s and valve which is like a preview of the annual consumer electronics show take a look at what holland cook host of the big picture learned when he attended the exhibit in new york. beginning to look a lot like christmas in new york where we got the big download yesterday from the consumer technology association who every year at this time releases research on the big holiday spend which is about a third of all the usa tech spend this is a two hundred ninety two b. billion dollar industry just in the states and one hundred seventy million of us are going to drop ninety six point eight b. billion stuff under the tree the batteries did not come included with. every
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parent's worst nightmare yeah absolutely starting stuff about a battery that's actually very good idea. what it can just ask men versus women it is spending what on one is not a false stereotype because how much never and let's just be on it depends on who you are that will spend more than women if you've got kids you'll spend even more and if you're an early adopter the c.t.a. research says you go up a notch and they're going to be buying drones and alexa like crazy and the demographic sweet spot for this industry is thirty five to fifty four so that's who's big on tech this year ok so it's people who were using tack i would say you know before it became sort of this millennium couple decades before on into the people who started using it in college so people have got a longer timespan way that they're more comfortable with it now which mainstream think about left your phone at home you do when you turn it's unthinkable not to
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have that when i can't handle it you couldn't do it i can tell you right now i back out what are some of the things that are hot items that that we've seen in the forecasts i mean they're collecting data all year long it's got to produce something now surprisingly while we expect to see the shiny objects like drones big and that will be one of the top ten gifts you know the number one gift people want for christmas this year is a t.v. that's not new and we all replaced our t.v.'s during that digital transition in two thousand and nine but these new four k. smart t.v. you're right with the world who and all of that the prices have fallen i can't imagine how best buy has a margin left but that's the number one gift the number two gift we want laptops think about it smart phone number three and we have a new one coming out the line is snaking around the apple store just to get your name on a list so a lot of the old stuff is what people want the new version of for christmas i have a hunch about that do you think that's the. birth of netflix and even apple t.v.
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and things like that have freed people's t.v. from being plugged into cable television do you think that's fed into this you know the cord cutters are driving the cable guy or insider in the nuts and the cord frager's the one who have dropped their premium channels because amazon netflix spending big bucks to create original programming nobody loves their cable company except for internet access so the genie is out of the bottle and the networks are now trying and h.b.o. are now trying to catch up to the dot com t.v.'s yeah they've got a totally flip around what are some of the things that really sound to you when you were there the. tech or not shopping habit has changed we used to talk about black friday it is now black november the door buster special you were talking about this now ten years ago we probably wouldn't be here already has an ancient cyber monday ten twenty years ago as a novel we already shop for paper towels online gift shopping is not
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a big leap interestingly that day and between small business saturday there's big business behind it it's being funded by amex because they're trying to gain favor with the retailers who resent the commish and they're trying to get back into their good graces and they're providing support material and videos and other tools for the mom and pops the small business saturday best buy is a product that comes with a story and the shopkeeper will convey the story to you so that when you present this gift so thoughtfully it comes with a story but if you want to t.v. you're at a big box yet no gear you're absolutely you're not going to go get a carrot and television now and we're buying online like crazy don't lloyd estimates eighteen to twenty one percent even more than last year which was huge increasingly on a smartphone and i thought one of the data points that just jumped off. the power
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point yesterday at this briefing was that people are now asking a lex so where the door buster specials are that's scary because while alexa can find you so the return policy and you're better off for free returns and free shipping you just better what if you noticed about black friday itself with regard to staffing and hours because some people are doing this hey after you finish turkey dinner i know skip turkey dinner come shopping and other people are saying no we're going out it's just wrong you know wal-mart the country's biggest retailer is going to open it a minute after midnight thanksgiving morning and you know that there's going to be people all bundled up in lawn chairs like an event happening and then they're going to trample each other when the doors open but america's biggest mall the mall of america is being minnesota nice they're not going to open on the holiday so it's kind of like chick fil a being closed on sunday they're making a statement only took place i was making
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a statement on what your opinion on the old school versus the new school of black friday shopping approaches i ask everybody that's do you think we should keep it traditional and keep the employees home shut the door they'll come in the next morning i buy a stack of whatever i think the thoughtful book is for half a dozen friends and clients but i still want to go to the mall yes still want to feel the hustle and holiday bustle and all go into godiva and get a stack of those for appropriate people because i would feel as though i missed it if i didn't go shopping it's an event it really is thank you so much for input on this holland house a big picture and. that's all for now be sure to catch boom bust on directv on the our t.v. channel one and even if that's on directv catch us on you tube at you tube dot. com bust our teeth thanks for watching.
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serious years long catastrophe is coming to a close foreign backing of opposition and terrorist forces are in retreat in face eradication but the struggle just far from over the war is essentially won we need a last peace will be no. i would not be surprised if a deal is made selling fannie mae and freddie mac. people's bank of china so that essentially china becomes america's biggest landlord and keeping prices down and they'll do it in the name of. global harmony and this is i think what we're can expect in the next few years because the u.s. is the world's biggest debtor trying is the world's biggest creditor so you put those two together you have the biggest creditor taking on some of the u.s. debt this is a cause like government guarantee fannie mae freddie mac. all the people who love parling money on those games they they've got chinese
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landlords that's to move the local economy. johnson medical is i think at least partially. responsible you could you could say for breaks it one could say she supported it breaks it which is good because with their policy he she made it easier for advocating to leave it to leave because they say they they could see how we are struggling with the with their policy and with the with the millions of migrants coming into europe and then india and also maybe coming to you kate. donald trump and turkey's president are to want to breed to jointly opposed both
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eisel and kurdish separatists in turkey. more than two hundred thirty people are killed in an assault on a mosque in egypt's north sinai province it appears to be the deadliest terror attack in the country's history plus. panic on the streets of london people flee one of the city's busiest shopping districts after reports of gunfire. in the highly high security facility that strikes fear in the hearts of even russia's most hardened criminals we gained unique access into the black a dolphin nation's toughest prison it is. some of the key.

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