This week’s book learning is from ‘Predictably Irrational’ by Dan Ariely.
George walks into the furniture store to buy a sofa. He sees a few that he likes but is not convinced.
“We have a 30 day money back guarantee sir.” – the smiling sales person tells him.
“That’s a cool deal.” George says to himself. “I’ll take it and try it. If I don’t like it, I can always return it..”
George takes it and never returns. He is not the first and won’t be the last.
Why?
What George doesn’t take into account is how much his perspective will shift once he does put the sofa in his living room. Ten days later, giving the sofa up would be a ‘loss’ and we all know how viscerally we react to the prospect of losing something..
The 30 day money back guarantee is a great metaphor of course. Often, we test something out and it soon takes hold of us – ideas become ideologies, a few data points become conclusive proof, the idea of a jump in lifestyle is one takes us from an affordable house to a very expensive one..
Dan Ariely cautions that our only way to not fall into the lure of such ‘guarantees’ is awareness.
Where have you noticed ’30 day money back guarantees?’
A Learning a Day 