REVIEW OF PREDICTABLY IRRATIONAL

By Dan Ariely

INTRODUCTION

• Another sign that times are changing is “Predictably Irrational,” a book that both exemplifies and explains this shift in the cultural winds.

• Dan Ariely, an economist and author, tells us that “life with fewer market norms and more social norms would be more satisfying, creative, fulfilling and fun.”

REVIEW

• A central theme in the book is pricing and perceptions around pricing.

• It has several cases around price comparisons, the difference between perceived values of objects being sold and bought, and reward/incentive scenarios

• even when given all of the tools we objectively know help us make better decisions, we still make choices that are irrational or even contrary to our best interests.

• Ariely also draws similarities with how we behave in non-monetary situations, such as politics, sports, and even life choices.

• From a Product Management perspective, this should serve as a reminder to all of us that our customers look to us to help reduce the complexity in their lives, not add to it.

• When evaluating a feature or bug fix, ask yourself if the path you are choosing makes it easier for you or for your customer.

CONCLUSION

• This book clearly raises some interesting issues around pricing, perceptions, and consumer behavior that Product Managers should look at to see if they might have any value for their products.

Thank You