Social and Community Worker in CJS
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Social and Community Worker in CJS
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Predictable Irrationality
Sense of sight creates visuals for the mind to interpret and make decisions. The decisions made depend on what has been presented to form an opinion, expression, or choice. Despite having the ability to rationalize, choices at times fail to be consistently objective. For instance, people will always choose free items if the offer presented to them is unattractive, making illusion a metaphor for rationalization. The consistency witnessed in irrational decisions has made behavior predictable. Businesses are using this concept to influence the choices of consumers.
Predictable irrationality can be experienced in two ways when making financial decisions: comparative and free choices. People will tend to make the easiest decision when they have comparative choices. For instance, three different subscriptions could be offered to consumers. The first one is the online subscription, which provides one year of access to information online for $60; the second subscription provides only printing privileges referred to as the print subscription at $100. The third subscription allows both print and online access but at the same price of $100. Many consumers will choose the third subscription that combines everything, and very few or no one will choose the print subscription. However, if the third choice is eliminated, the majority will choose the second subscription.
Free choices are just another kind of price with a value attached. Using the subscription example but adjusting the prices to $2 and $3 for print and combined daily subscriptions. The prices create an indifferent situation, but when $2 is subtracted in both prices, many consumers will choose the print subscription that is freely offered rather than one pay $1. The free subscription value is $2, and even though the price difference is the same, the majority will choose the free item.
People view the decision-making process as a tiresome process. It is better to be presented with what seems like the easiest choice than to rationalize available options. Realizing the financial impact of predictable irrationality does not seem to change future behavior since the situation appears different from the previous one.
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Social and Community Worker in CJS
Student’s Name
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Professor’s Name
Date
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