The Bootstrap Marketing Subgroup chatted with Prof Dan Ariely, author of numerous books explaining the vagaries of human behavior and choice. Subgroup lead and BootRap Producer, Brian Massey interviewed Dan about his research and book, Predictably Irrational, and how these insights could be used in marketing and pricing. Brian provides a summary of the book in the first section and the interview begins at: 8:44.
Topics covered include: Decoy Model, the power of comparison; social vs market exchange; price anchoring and Starbucks; TiVo v DVRs; fe/male differences in purchasing; the challenges of focus groups and bad data; anti-depressants vs placebos; the importance of moving marketing earlier in the product-creation process; design for physical AND cognitive differences; how the 2008 mortgage crisis was created by short-circuited human decision-making; how credit cards separate consumption from experience; Gucci, Prada & fakes; why consuming gas is stressful; the pain of pain; how lawyers should charge for their services; and much more. Dan also provides advice on how to appreciate the pain associated with the entrepreneurial journey. The conversation ends with a fascinating puzzle, the answer to which reveals our own proclivity to being "predictably irrational!"