companies are trying to connect with people on a social level in order to gain trust and allow the customer to overlook minor infractions.

Predictably Irrational - Wikipedia, the free encyclopedia: "Log in / create accountArticleTalk"

'via Blog this'Ariely's concept of "FREE!" applies not only to monetary and quantitative costs, but also to time. We forgo some of our time when we wait in line for free popcorn or to enter a museum on a free-entrance day. We could have been doing something else at that time. Ultimately, he demonstrates how such a simple concept can be used to drive business and social policy.








 No matter how much experience we have we make irrational decisions every time we are under the influence of arousal. (any kind of arousal)

Ariely gives three reasons why we do not always think rationally when it comes to our possessions:

1. Ownership is such a big part of our society that we tend to focus on what we may lose rather than on what we may gain.
2. The connection we feel to the things we own makes it difficult for us to dispose of them.
3. We assume that people will see the transaction through our eyes.

The Effect of Expectations

In chapter 10, Ariely and several colleagues conducted a series of experiments to determine whether previous knowledge can change an actual sensory experience. One of the experiments was conducted in the Muddy Charles, one of the MIT's pubs. Students visiting the pub tasted two types of beer -- Budweiser and the MIT Brew (which contains balsamic vinegar).

In the “blind test” the majority preferred the altered brew, but when they were told in advance that it was vinegar-laced, they chose the original Budweiser. Another group of students was made aware of the vinegar content immediately after tasting both kinds of drinks. However, they still reported that they preferred it, proving that knowledge after the experience does not affect our sensory perceptions.

Ariely also states that expectations shape stereotypes. Stereotypes provide us with knowledge before the actual experience and thus influence our perceptions. 

Ariely concludes, “Expectations can influence nearly every aspect in one’s life.”^[7] He gives a convincing argument that expectations can override our senses, partially blinding us from the truth.

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http://en.wikipedia.org/wiki/Predictably_Irrational