Most human beings like to think they are rational and that they make purchase decisions rationally. The truth is, we are all rational sometimes, but irrational much more of the time. Here is a small demonstration. If I told you that you could save $50 on a $300 shirt by driving 20 kilometres to a […]

 Most human beings like to think they are rational and that they make purchase decisions rationally. The truth is, we are all rational sometimes, but irrational much more of the time. Here is a small demonstration. If I told you that you could save $50 on a $300 shirt by driving 20 kilometres to a store in a neighbouring suburb – would you make the journey? Most people I talk to would make the journey. Why not? Fifty dollars is fifty dollars. Now, if I told you that you could get a $50 discount on a $50,000 car by driving 20 kilometres to a neighbouring suburb, would you make the journey? Again, most people I speak to would not make the journey. But why not? Fifty dollars is still fifty dollars? Beware the intuitive decision. It is very often very wrong.  It might be harsh to describe consumers as stupid, but…