It’s 8:45 A.M. in New York City. A woman walks up to a street vendor’s cart, smiles and nods quickly at the vendor, and says, “Regular.” The man promptly prepares her a small coffee with milk and two sugars. He hands her the coffee; she hands him some money, says “thanks,” and continues on her way.

With only two words spoken, an entire business transaction has been carried out to the satisfaction of both parties. But what exactly occurred? The characteristics of communication can explain.