If, like me, you’re fascinated by the psychology behind the decisions people make, then spend about 18 minutes of your time and enjoy Dan Ariely’s excellent TED talk on why we’re “predictably irrational”. Aside from a great insight into why we should all hang out with slightly uglier versions of ourselves, there’s a lot to be learned in how pricing and bundling of products and services offers a lot of room for growth.
I’ve seen many companies test the price elasticity of their offers and adjust pricing accordingly to increase profits, but this can often come at the expense of customer satisfaction. If such strategies are really a question of balancing price with utility, then there are some simple lessons in Dan’s insights. At thinkGROWTH, we’re all avid TED.com watchers, and I think this would figure in our top 10 (if we actually had one!).
In the real world, maybe this finally goes someway to explaining why many people often chose the second least expensive wine on the list at restaurants…?
August 25, 2009 at 4:33 am |
[...] on incentives By Josh You might remember a little while back we linked to Dan Ariely’s great talk on behavioural [...]