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Predictably Irrational

Updated: Jul 15, 2020

Let me start by stating that people make inconsistent decisions.

“By knowing how people think, we can make it easier for them to choose what is best for them, their families and society”

If we wonder, how people think and make choices, we somehow hold a certain amount of power to influence them. Honestly speaking we are far from rational, in fact, we are so gullible that we get affected from not only the environment but from the most tiniest things ever. Be it emotions, be it interactions, be it anything. No matter how hard we try these things have an impact on us in ways we have not even imagined.

Now think of the last new thing you bought, was it necessary?

In 70% of the cases, it is not.

Now that you know, let me just clear the fact that the marketing/presentation/availability of the products affect your purchases. This is the Nudge Theory. Let me define nudge for you ‘‘it is nothing but the slight touch or the gentle push.’’

In reality, all you need is a little nudge to confirm what your eye spotted to get it in your shopping cart. That little push makes you believe that what you just saw, is not at all unnecessary and you ought to buy it.

The theory teaches us how the little changes affect us in ways we cannot control. However, the impact of that slight touch or gentle push is way higher than what you thought. 

For example, Installing fly shaped stickers in urinals, subconsciously reducing the spillages by 80%! Another instance is, While dining out we all see that one item which is the most expensive on the menu, the restaurant does not expect us to buy that, they want you to buy the second most expensive dish and 8 out of 10 times people do that because the second most expensive dish is like a relative bargain

Similarly, For reducing electricity consumption along with individual bill give them their neighbour’s bill copy as well. With the innate human nature to compete and win the consumption will reduce.

Also, there are basic things like using a smaller plate to eat less and placing the salad bar in the centre of the room will increase salad consumption.

Written by Riya Jetly


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