Good evening,
When I started to read the book SWAY I was surprised by the authors point of view and what I learnt is that SWAY is about decision-making and the biases that each of us bring to the decision-making process. Basically, SWAY represents compelling evidence that the rational decision-making model is damaged because of us, human beings, which by nature are subject to biases and hence not rational.
The decision-making biases are referred to as “sway” factors in the way that they sway or move our thinking away from rationality and these factors permeate virtually all our decisions. The authors argue that in order to preserve our self-image, we are reluctant to assume risks that might lead to the loss of investments involving money, effort, or emotions.
Another sway factor is related to our tendency to see and evaluate the value of something or someone in terms of the cost of purchase or social imagery associated with the product, person, or service. As an example, when customers pay more for something, they tend to report greater levels of satisfaction with a given item when purchased at a relatively high price then they do with an identical item when purchased at a lower price.
To sum up, I would like to mention that the book is very helpful even for our everyday life that we have to see and evaluate the value of something by its real value and not by cost.
Anri
Hi Anri,
ReplyDeleteI agree with you telling that “…customers pay more for something they tend to report greater levels of satisfaction …” It is completely true that we most of the time buy the “brand name”, may be the same product exist at a lower price but we do not even look at it. There exist these hidden forces that we can not manage at the moment and it is hard to explain but they make us spend more when it is not necessary so being pulled by our irrational behavior.
Hi Anri,
ReplyDeleteMe also agree with your statements about the customer irrational behavior.
Because also us are involved in this process of thinking and behaving. This pull comes from the things that we have fixed in our minds that are likely to change the rational mind.
And the exiting thing is that we know the differences and the benefits of the products :
).
Thank You!