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The value of signaling in communication from "summary" of Alchemy by Rory Sutherland
Signaling is a fundamental concept in communication that often goes unnoticed. When we communicate, we are not just exchanging information - we are also signaling our intentions, emotions, and social status. This signaling aspect of communication has immense value and can greatly influence the outcome of our interactions. Consider the example of a luxury brand like Rolex. The high price of a Rolex watch serves as a signal of quality and exclusivity. By wearing a Rolex, an individual is not just telling time - they are also signaling their wealth and taste. This signaling adds value to the product beyond its practical utility, making it more desirable to certain consumers. In everyday interactions, sign...
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