In this episode, we deep dive into the irrational world of customer behaviour with legendary behavioural economist Dan Ariely. Dan reveals why we’re all predictably wrong, how tiny invisible cues can radically change price perception, and why effort makes things feel more valuable. We also unpack the real reason people fall for misinformation, how to rebuild trust in broken industries like insurance, and why letting customers choose their own price might just be your smartest move. If you want to understand what truly drives decisions — and how to use that insight to become a better marketer — this one’s unmissable.
Timestamps:
00:00:00 - Intro
00:00:50 - The story of Dan Ariely’s half beard
00:07:53 - Dan’s painful introduction into behavioural science
00:11:46 - Reaction to Jon’s house tragedy
00:15:11 - The hidden truths revealed by social science
00:21:43 - Invisible vs visible motivation
00:29:20 - How Dan would change insurance companies
00:33:30 - Lemonade insurance example
00:35:39 - Why the human brain is a vintage Swiss Army knife
00:38:08 - How context radically changes price perception (the relativity effect)
00:45:01 - Why you should let your customer choose their own price
00:47:11 - Why economists donate the least to charities
00:49:58 - Why effort greatly increases your price perception
01:00:06 - The real cause of misinformation and why it isn’t what you might think
01:12:18 - What will be Dan Ariely’s new book?
01:13:38 - Why we are so afraid of mistakes