So, you think you’re rational?

January 26, 2009

You’re not.

Neither are your customers or prospects.

(Don’t worry, neither am I.)

And Dan Ariely has proof.

Predictably Irrational: The Hidden Forces That Shape Our Decisions is one of the best books I’ve read this year (ok, so it’s still January).

Good marketers know that telling a story and creating a perception is often more important than the facts.

It’s not about lying, so don’t misunderstand.

It’s about understanding how the mind of your audience/customer/spouse/date works and then working within those constructs.

And, it’s not rational.

Quick example (and there are many, many good ones):

A group of students (with no previous knowledge about wine) were asked to write down the last 2 digits of their social security number on a piece of paper.

Then, they were read a description of different wines. You know, “oak, fruity, etc.”

Lastly, they were asked to write down the price they would pay for the bottle based on the description.

The fact that they had written their SSN’s down before shouldn’t matter, right?

Wrong.

The students in the top 20 percent (in terms of highest last 2 digits of their SSN) bid 216 to 346 percent than those with the lowest last 2 digits.

The implications are vast.

  1. You will get some insights into your own behavior
  2. You may get some ideas of how you can utilize this information to better sell and service your customer.




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