The Paradox of Choice

The Paradox of Choice has been my favorite of the selected readings. Schwartz’s study of how happiness is affected by success or failure of goal achievement is very interesting. This idea applies to myself included, for as long as I can remember I had to win. Now thinking about it this was probably driven from my involvement in competitive sports.

The study compares the choices of American consumers in daily life to something as specified as a selection of courses at an Ivy League school. Voluntary simplicity is brought up, but I had some difficulty understanding its fundamentals; upon further investigation of this idea I come to believe it has to do with having to many choices but that is just as much the problem as having to few choices. Schwartz is convinces that these choices have materialized because society has been far to focused on our personal wants.

Schwartz presents six steps that illustrate the consumer strategy when evaluating goods. 

1.     Figure out your goal or goals: this begins by asking yourself “what do I want?” The question is generally answered by expected utility or in other words, by achieving that want how would the individual than feel. After expected utility occurs the same choice is based on remembered utility.

2.     Evaluate the importance of each goal: Kahneman and Tyersky investigated: how individuals make decisions. They found that there were a few general rules that often would lead consumers to miswanting. There are two primary forms of evidence that people rely on: anecdotal and expert evidence. We assume with increased access into our memories information bank that we must have encountered more of that information in the past this is called availability heuristic.

3.     Array the options: personal psychological accounts create framing for the choices.

4.     Evaluate how likely each of the options is to meet your goals: Schwartz thinks people can be “creative accountants” in their psychological balance sheet.

5.     Pick the winning option: options are embedded in choices before they are chosen. Richard Thaler an economist gives insight into the sunk cost theory.

6.     Modify goals: Schwartz last step is based on consequences of a choice affecting ones goal.

Schwartz also discusses “why we suffer” he uses models of happiness and how it addresses choice. However, he does caution that each of these strategies have their own difficulties.

-       Choice and Happiness

-       Freedom or Commitment

-       Second-Order Decisions

-       Missed Opportunities  

Status

As Christmas comes around we are all thinking about our perfect gift as well as a gift for someone special. This year I have been putting more thought into what I would like than any other year and I would like something shiny. From an article in the Journal of Consumer Psychology; jewelry, especial very ostentatious pieces will usually be worn by individuals that think of themselves as a lower class or status than others.  The American population “thinks of ourselves as a classless society”, who is obsessed with social standing and demonstrates status by our possessions. Status is generally determined by racial or ethnic background, as well as what job we hold and where we have chosen to live. 

Even if we do not intend to, people generally sort themselves with other individuals belonging to the same or similar social hierarchy. Social and status hierarchy based on items can be a false indicator of the individual’s actual status, but these impostors can easily be discovered with a second look. We observe these differences in social/status hierarchy mainly by the individual’s mannerisms; how they sit, react to situations, tactfulness and especially their use of language and dominance within the conversation. Whereas lower status individuals will start to mimic, basing their body language and way of speaking on higher status individuals. 

So far we have established that social/ status hierarchy are important within society.  So, if status influences personal values, than an individual with lower status will typically desire high status items or products. Leading to the possible conclusion that, those’ within society who have the least ability to afford ostentations items desire them the most. In the past it was challenging for individuals to acquire status pieces due to their lack of credit and money but that has all changed, almost anyone is able to purchase on credit today. So before I commit to a shiny gift this year, I have to take a minute and wonder where my desire is coming from.

Pieces of April

I was generally uninterested while watching Pieces of April, but I did recognize the ritual examples and understand why it was chosen. The movie seemed to have the underlying point that: family is most important and they need to be kept together even in the worst times. Family also has the ability and tendency to form stronger bonds when there are faced with unfavorable circumstances.

Pieces of April made me sad but by the end of the movie I really appreciated the real and extended family that I had. It has been difficult the past three years to go home, since it’s so expensive and time consuming to take two flights during the busiest travel season. I felt sorry for April, everyone in her family detested her as well as having no confidence or pride in her until the ending of the film. In true ironic fashion everything started to go wrong for the preparation of Aprils Thanksgiving feast: her oven broke down, the rest of her family does not want to join her for dinner and this would be Aprils final time seeing her mother. But the individuals in her building came to her rescue; they assisted her, showing her kindness and demonstrating the true Thanksgiving sprit. 

Black Friday

We finished up class last Thursday talking about Thanksgiving and Black Friday. Even though my birthday tends to land on Black Friday this still has not made me, jump in line with all the crowds of people.  Personally I think Black Friday is taken a little overboard; physically trampling employees trying to get into the doors, but some people seem to really enjoy the mayhem.

Not only do advertisements come out in the newspaper but technology has made it much easier to find the best deals and plan out a strategy. Sure I could spend the day after Thanksgiving in line battling cougars for a popcorn maker/ DVR combo, or I can spend it on the nice slopes of Big Sky where I will rarely find a line. But if this adventure sounds fun to you there are some tips that you should follow to survive Black Friday

·      Pack supplies- “Black Friday is kinda like Vegas, you never know what’s going to happen”

·      Wear proper shoes- a shopping cart to the foot is a great strategy

·      Check out the adds and deals before- time and effort can be avoided, by shopping for your target item. Also check the store and plan out the more efficient shopping rout.

·      Night Deals­- skip the chaos by snagging deals that begin Thursday night

·      Proof- bring the adds, no store can argue with printed proof

·      Skip the Mall- firstly the mall will be PACKED, secondly retailors may have already put these sales online

 ·      Check the return policy

 and most importantly

                           ·      Make sure that it is actually a deal- not all deals are good deal

For the dedicated Black Friday shoppers; who wake up far to early, bundling in matching team outfits, just to stand in the dark out front of your store of choice, I commend you for your bravery; taking on the crowds and snagging the best deals of the year. But be care and take note of these tips, because “Black Friday is kinda like Vegas, you never know what’s going to happen”.