14 June 2010
Predictably Irrational
I started to read this book over the weekend. This in basic terms is a non-fictional marketing book. Now you will say agh, go away. But don't. It is an incredibly fascinating book where you can't stop reading. Dan Ariely makes a behavioral marketing appraoch to things and consumption we do in our daily life. To give you a better idea here is the book description:
Why do our headaches persist after taking a one-cent aspirin but disappear when we take a 50-cent aspirin?
Why does recalling the Ten Commandments reduce our tendency to lie, even when we couldn't possibly be caught?
Why do we splurge on a lavish meal but cut coupons to save twenty-five cents on a can of soup?
Why do we go back for second helpings at the unlimited buffet, even when our stomachs are already full?
And how did we ever start spending $4.15 on a cup of coffee when, just a few years ago, we used to pay less than a dollar?
When it comes to making decisions in our lives, we think we're in control. We think we're making smart, rational choices. But are we?
In a series of illuminating, often surprising experiments, MIT behavioral economist Dan Ariely refutes the common assumption that we behave in fundamentally rational ways. Blending everyday experience with groundbreaking research, Ariely explains how expectations, emotions, social norms, and other invisible, seemingly illogical forces skew our reasoning abilities.
Not only do we make astonishingly simple mistakes every day, but we make the same types of mistakes, Ariely discovers. We consistently overpay, underestimate, and procrastinate. We fail to understand the profound effects of our emotions on what we want, and we overvalue what we already own. Yet these misguided behaviors are neither random nor senseless. They're systematic and predictable—making us predictably irrational.
From drinking coffee to losing weight, from buying a car to choosing a romantic partner, Ariely explains how to break through these systematic patterns of thought to make better decisions. Predictably Irrational will change the way we interact with the world--one small decision at a time.
The experiements and researches made to support the facts of the book are very interesting. You actually enjoy reading it. I can't take myself from thinking why wouldn't I have this book to study during my univeristy life (most probably because it wasn't published yet :)
So, I highly recommend you to read this book and you don't really have to have marketing major. It brings a critical perspective on our daily decision one like buying a coffee and see how much we throw things away or make the wrong decision when we think we do the right.
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