Predictably Irrational: The Hidden Forces that Shape Our Decisions by Dan Ariely (Harper, 2008)
Dan Ariely defines predictably irrational: Our irrationality happens the same way again and again; our irrational behaviors are neither random or senseless, they are systematic and since we repeat them again and again, predictable.
Predictably Irrational (PI) addresses imprinting, why we stick with decisions once they are made. In running a small business in a highly competitive marketplace, it is important to learn about consumer behavior and loyalty. PI is thought-provoking as it addresses why and how consumer ch0ices are made. Lemuria wants our readers to understand their reading choices. We encourage those decisions to be made consciously, with book purchases adding the highest reader value for the time spent.
Ariely explores why we stick with decisions once they are made. Reading his case studies allows us to reflect on our own habits and understanding their results. Irrational behaviors are neither random or senseless, they are systematic and predictable. We often make the same mistakes over and over again responding to the basic wiring of our brain. Two sections that spoke to me were the explorations of predictably irrational as an explanation of our consumer and workplace habits.
As we spend our money, most transactions have a downside, but when something is free we forget the downside. Free gives us an emotional charge that causes us to perceive that the free item is immensely more valuable than it really is. Ariely asserts this is because humans are intrinsically afraid of loss. From a consumer perspective, one association I have with “free” is with Amazon shipping which causes us to fall into the trap of buying something we don’t need but emotionally think we want. As consumers actualize, I feel manipulative strategies of the “sucker punch” marketing will become less influential in the future. Marketing “Free” and “Sale” should digress as consumers become more aware of these deceptive tendencies. To buy in excess just because something is free or on sale is another predictably irrational behavior.
On the other hand, how often do we experience marketing that tells the consumer that a high price is simply the high price of ownership, the high price of a social relationship, or the high price of being unique–causing us to pay more than we feel we should. This causes more emotional loss than we gain from the product or the experience.
I especially enjoyed Ariely’s section on predictably irrational in the workplace. He addresses procrastination and self control at work and why we lose this fight so often. Giving up our long term goals for immediate gratification is procrastination. We forget the problems these poor choices cause fellow workers whose tasks are dependent on others time lines. All good small business owners know that everyone has problems with procrastination. Management’s job of getting workers to recognize and admit their weaknesses is difficult. However, those workers that deal with these issues responsibly are in better position to utilize the tools to overcome their work flaws, thus doing a better job and increasing their take home rewards.
The author also addresses dishonesty and what we can do about it. He explains the method to our madness of being prone to steal when cash is not involved. Cash ties in a directness to a person which is more prohibitive than not paying on charge accounts. Or, the idea that you would steal music off the Internet easily but wouldn’t consider shoplifting a CD from a store. I wonder are publishers going to have this problem with e-books in the future.
Dan Ariely’s Predictably Irrational is an easy-to-read cultural study. If you like reading Malcolm Gladwell, this might be a book for you.
Comments are closed.