Are Your Customers Predictably Irrational?

[PaulSimister]

I allowed myself to be distracted first thing this morning by a fascinating interview with Dan Ariely, author of the book Predictably Irrational.

I had heard some of it before but this is such a fascinating subject.

You can use these ideas in two ways

1 - to manipulate customers into buying what's good for you but bad for them

but you wouldn't do that would you?

2 - to help lead your customers to make the right decisions for them

You can learn more about why athletes are happier to win the bronze medal rather than the silver medal, even though it's better on my blog

Predictable Irrationality (http://businesscoaching.typepad.com/the_business_coaching_blo/2008/07/predictably-irrational---bronze-beats-silver-medal.html)

Take a look and let me know what you think about research into these techniques.

Is it a good idea because it can help you to sell more at a higher price or is it bad because these techniques trick buyers into spending more money?

[Rob]

Paul, thanks for the link to the interview and am in the process of downloading so will listen to shortly.

I like the idea of customers being predictably irrational and the example of customers going for the mid price product out of three pricing tiers is particuarly cunning.

In marketing you hear about the sales funnel where you start customers off on the lower priced product and then take them through the higher priced and higher value products. The idea of 'forcing' clients to start higher up the funnel is interesting.

Funnily enough I just posted a blog entry on the issue of pricing strategies (http://www.smallbusinesssuccess.biz/forum/blog.php?b=27)and it links in nicely with this theme.

I will have a listen to the interview and again thanks for the link.