Dan Ariely is one of the world's foremost specialists in behavioral economics, the study of how individuals behave when making company and financial decisions. The insights of Ariely should make executives think about the wisdom of the decisions they regularly make - in addition to the internal procedures they rely on to make those choices. Why will they regularly agonize attempting to pick between two options that are close when they're frequently better off simply flipping a coin? In this wide-ranging interview, Ariely talks about how Apple Inc.'s first decision to price the iPhone at $600 only to drop it to $400 soon after might not have been a blunder but instead a really clever marketing maneuver.
He also clarifies why a product monopoly might undesirable because it can lead to consumer confusion, causing slow sales. With regards to hiring practices, Ariely firmly questions the interviewing procedures claims that some businesses might be better off hiring grads from reputable schools at random and habitually used. Ariely describes one of his most valuable managerial insights -- that adding even only a little significance to employees' work will normally raise their motivation immensely.
PUBLICATION DATE: January 01, 2009 PRODUCT #: SMR303-HCB-ENG
This is just an excerpt. This case is about LEADERSHIP & MANAGING PEOPLE
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