In “Predictably Irrational,” Dan Ariely explains the importance and impact of expectations. Put simply, everyone’s experiences are shaped by their prior expectations of that experience. If I go to a movie that has gotten rave reviews, there is a good chance I will like it more than if it had gotten bad reviews. Everyone is affected by expectations in every day of their lives. Ariely also explores the effects of image on a consumer’s experience when he does his coffee experiment. Though no one actually used the odd additions to their coffee, more people were likely to spend more money on the coffee when the additions were in a fancy container. I believe the same exact thing is true for Starbucks. How much is a cup of coffee really worth? Well, that depends on who is selling it. I am an avid coffee drinker, though I am not a snob about it. I drink my Folgers every morning and put regular Coffee Mate in it. Yet, if I skip coffee at my apartment and have to buy some at another place, I will always choose Starbucks or Coffee Bean and Tea Leaf over 7-11. This is completely irrational because I will end up spending about $3 more than necessary. Even though the coffee might not be any better (in fact, Starbucks tends to burn a good sized hole in my stomach), it still seems better because of where it is coming from.
This is extremely important for marketers to understand. They aren’t only selling a product; they are selling the packaging, the store, and the experience that comes with buying the product or entering the store. If a retailer can make you spend more money on a product by making it more visually appealing, or by adding an ingredient that appeals to a majority (for example, making something sugar free might appeal to mothers), then they have done a pretty good job marketing that product. Consumers also will buy what they know. If marketers can make a brand salient in a consumer’s mind, then more and more people will tend to buy that product. The Coke example conveys this perfectly. More people like Coke over Pepsi when they know they are drinking Coke. Coca Cola has employed extremely effective marketing to get people to enjoy their drink just because of the name.
Ariely uses the MIT beer experience as his main example to illustrate his point. By using two different beers—one with vinegar, and one without—Ariely observes how people react to the beers when they know about the vinegar and when they don’t know about the vinegar. Because vinegar carries a negative connotation in most people’s heads (doesn’t pretty much everyone cringe at the smell of vinegar?), they tended to not only dislike the vinegar-laced beer, but they even winced when sipping the beer. However, people who were not informed that vinegar was an ingredient ended up liking that beer more than the regular beer. This is a glaring example of how connotations or expectations can shape one’s perception of a product.
A perfect example involves my best friend in high school and her mom’s homemade meatballs. My friend had been talking up these meatballs to me, so I just had to have some. She went on and on about how they are homemade (which I think always carries a positive connotation and raises one’s expectations…at least, my expectations rise when I hear ‘homemade’). So I sit down and eat a meatball. Sure enough, those were some really good meatballs. So good, in fact, I made sure her mom knew a couple days in advance every time I came over so she could make me some delicious meatballs. One day, my friend was hosting a soccer party and her mom made the meatballs. Before anyone had eaten them, we were sitting around waiting on food, and I kept talking about how good they were. Naturally, all of my friends were anxious (we tend to get very excited about the prospect of good food). As she is serving them, I asked her how she made them. She quickly responded, “Oh you just get some meatballs and mix in ketchup and jelly.” My jaw unhinged itself a little. Ketchup and jelly??? That’s disgusting. At least, it sounds disgusting. Everyone at the party heard this. Some people wouldn’t even eat the meatballs after that. Some people took one bite, made a face, and quietly pushed their bowl aside. These wonderful meatballs were ruined when people find out their true ingredients. This example just goes to show how powerful expectations can be, and how they can affect one’s behavior or experience.
This article is definitely something I will always consider when pursuing my future marketing career. How can I make my brand have a positive connotation? How can I increase consumer’s expectations of my brand?
