Book Review: Predictably Irrational
Book Review: Predictably Irrational
Each chapter explores different forces that shape our behavior in ways we don’t truly understand (or underestimate) - what he calls “decision illusions”.
For example, Chapter 1 (The Truth About Relativity) explains that our choices are not based on absolute thinking, but on relative/local choices. For example, would you rather purchase an online subscription to the Economist magazine for $59/year or a print subscription for $125/year? What if there was a third choice: print+online for $125/year (the same price as print-only)? It turns out that high-priced items on menus and in catalogs serve as decoys: by having a high-priced item, you see the lower-priced items as a bargain and increase your spending to the next-highest priced item.
Chapter 2 (The Fallacy Of Suppy And Demand) describes a different phenomenon: we quickly anchor to a starting value of a product/service and color our perception through this anchor. That’s why in an ad you might see a price initially stated, but then the advertising copy goes on to increase the value and drop the price. It’s a deal that you don’t want to pass up. But the initial value of the offering was arbitrary, and you’ve anchored your mind around the relative price difference. To get out of this thinking, you need to evaluate the produce/service not only to its competition, but also its true value to you.
Chapter 3 (The Cost of Zero Cost) describes the psychological power of FREE. People will jump on free offers (even though a low-cost offer may be an amazing deal, FREE is an offer you can’t seemingly pass up). The author encourages policy strategists to use FREE to drive people’s actions (healthcare screenings, electric cars, etc.).
The book is an easy/fun read, and humbly shows you just how much we don’t really understand about our actions. If you want some additional FREE insights (including videos and research studies), go to Dan’s website.
Book Review Predictably Irrational - To learn more about this author, visit Jay Hamilton-Roth's Website.
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As a marketing strategist, I’m always looking for information to help understand human psychology. Predictably Irrational (by Dan Ariely) is full of wonderful insights (based on original research) on the surprising differences between logical thought and emotional consumer action. It seems that the world does not operate according to standard economic theories.
Each chapter explores different forces that shape our behavior in ways we don’t truly understand (or underestimate) - what he calls “decision illusions”.
For example, Chapter 1 (The Truth About Relativity) explains that our choices are not based on absolute thinking, but on relative/local choices. For example, would you rather purchase an online subscription to the Economist magazine for $59/year or a print subscription for $125/year? What if there was a third choice: print+online for $125/year (the same price as print-only)? It turns out that high-priced items on menus and in catalogs serve as decoys: by having a high-priced item, you see the lower-priced items as a bargain and increase your spending to the next-highest priced item.
Chapter 2 (The Fallacy Of Suppy And Demand) describes a different phenomenon: we quickly anchor to a starting value of a product/service and color our perception through this anchor. That’s why in an ad you might see a price initially stated, but then the advertising copy goes on to increase the value and drop the price. It’s a deal that you don’t want to pass up. But the initial value of the offering was arbitrary, and you’ve anchored your mind around the relative price difference. To get out of this thinking, you need to evaluate the produce/service not only to its competition, but also its true value to you.
Chapter 3 (The Cost of Zero Cost) describes the psychological power of FREE. People will jump on free offers (even though a low-cost offer may be an amazing deal, FREE is an offer you can’t seemingly pass up). The author encourages policy strategists to use FREE to drive people’s actions (healthcare screenings, electric cars, etc.).
The book is an easy/fun read, and humbly shows you just how much we don’t really understand about our actions. If you want some additional FREE insights (including videos and research studies), go to Dan’s website.
Book Review Predictably Irrational - To learn more about this author, visit Jay Hamilton-Roth's Website.
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Dianne CramptonDianne Crampton is an executive leadership coach, team culture consultant, author and president of TIGERS Success Series, Inc. Dianne has been helping CEO's and Executives connect their employees to their core values and goals for over 20 years using the trademarked TIGERS team culture process, which stands for trust, interdependence, genuineness, empathy, risk and success. To download a free white paper on behaviors that build strong teams and behaviors that will predictably tear them down go here. Dianne's contribution to the 2010 Pfeiffer Consulting Journal (an imprint of John Wiley and Sons Publishers) entitled TIGERS Hearted Teams is available in November 2009. Her new book TIGERS Among Us: 5 Winning Business Team Cultures And Why, Three Creeks Publishing will release in March 2010. To receive publishing discounts, subscribe to the free TigerTracks Newsletter here. - Visit Dianne Crampton's Website |
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David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
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Leanne Hoagland-SmithAre your sales where you want them to be? Will you be one of the few who achieves sales or business success or one of the many who have failed to change? Are you tired of being told you are like everyone else? Then you may find my first book on sales of interest. Be the Red Jacket in the Sea of Gray Suits, The Keys to Unlocking Sales available at Amazon or at http://www.processspecialist.com/red-jacket.htm. This book is a reflection of my no-nonsense approach to improving sales to overall business results. If you are truly committed to making sustainable changes, then I can help you secure a positive return on your investment because I focus on executable solutions not telling you the problems you already know you have. From training to corporate (group) coaching to executive one on one coaching, my approach is to assess, create awareness, build a goal driven action plan and then execute. The bottom line question is "Not do you or your employees know it, but do you or they want to do it?" Please call for a free strategy session at 219.759.5601. - Visit Leanne Hoagland-Smith's Website |
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Dave KurlanDave Kurlan is the founder and CEO of Objective Management Group, Inc., the industry leader in sales assessments and sales force evaluations, and the CEO of David Kurlan & Associates, Inc., a consulting firm specializing in sales force development. Dave has been a top rated speaker at Inc. Magazine's Conference on Growing the Company, the Sales & Marketing Management Conference and the Gazelles Sales & Marketing Summit. He has been featured on radio and TV, including World Business Review with General Norman Schwarzkopf, in Inc. Magazine, Selling Power Magazine, Sales & Marketing Management Magazine and Incentive Magazine. He is the author of Mindless Selling and Baseline Selling – How to Become a Sales Superstar by Using What You Already Know about the Game of Baseball. He created and wrote STAR, a proprietary recruiting process for hiring great salespeople, and he writes Understanding the Sales Force, a popular business Blog and is a contributing author to The Death of 20th Century Selling and 101 Great Ways to Improve Your Life, Volume 2. - Visit Dave Kurlan's Website |
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