task 4 Familiarity principle, also known as, mere exposure effect, is a psychological phenomenon where people have preferences for things because they are familiar with them. The familiarity principle effect exists in most areas of human decision-making.

task 4 Familiarity principle, also known as, mere exposure effect, is a psychological phenomenon where people have preferences for things because they are familiar with them. The familiarity principle effect exists in most areas of human decision-making. Many stock traders tend to invest in securities of domestic companies merely because they are more familiar with them. For example, most people remain in the country that they grew up in for their entire life.