Chapter Two of Dan Ariely’s “Predictability Irrational”

In Chapter Two of Dan Ariely's "Predictability Irrational", the main points that he makes are that most of the time we have no idea about the value of certain products, but the main force that drives us to actually make purchases in the price tag on the item. Ariely's main points made in this chapter refer to the buyers perception of a specific product and not necessarily basing off of similar products prices or the competitions prices. He then goes on to discuss the idea of anchoring and how prices can be imprinted into our minds for various products. When that price is seen by consumers the first time, they believe that it may be the same price for the same product in other areas, therefore they may not have the desire to go search for a cheaper price.  People tend to pay a certain price for a product when they're first exposed to it, and this is the main force that drives anchoring. Ariely says that we shouldn't necessarily believe the first price we see on a product is going to be the same for the same product at a different store. He says that we should question ourselves and can't be so vulnerable to companies charging outrageous prices for their products. The idea of supply and demand is also brought up by Ariely, as he says that the demand for products tend to be more high then the supply, therefore companies can charge whatever price they want for a product and tend to get away with it.

The point this chapter makes is that most of the time we have no idea of the inherent value of a certain product and what we’re willing to pay for it depends on lots of things, but the first price tag associated with that product has a decisive role. - See more at: http://zsoltbabocsai.org/dan-ariely-predictably-irrational/#sthash.tTm5P81x.dpuf

The point this chapter makes is that most of the time we have no idea of the inherent value of a certain product and what we’re willing to pay for it depends on lots of things, but the first price tag associated with that product has a decisive role. - See more at: http://zsoltbabocsai.org/dan-ariely-predictably-irrational/#sthash.tTm5P81x.dpuf

The point this chapter makes is that most of the time we have no idea of the inherent value of a certain product and what we’re willing to pay for it depends on lots of things, but the first price tag associated with that product has a decisive role. - See more at: http://zsoltbabocsai.org/dan-ariely-predictably-irrational/#sthash.tTm5P81x.dpuf

The point this chapter makes is that most of the time we have no idea of the inherent value of a certain product and what we’re willing to pay for it depends on lots of things, but the first price tag associated with that product has a decisive role. - See more at: http://zsoltbabocsai.org/dan-ariely-predictably-irrational/#sthash.tTm5P81x.dpuf

The point this chapter makes is that most of the time we have no idea of the inherent value of a certain product and what we’re willing to pay for it depends on lots of things, but the first price tag associated with that product has a decisive role. - See more at: http://zsoltbabocsai.org/dan-ariely-predictably-irrational/#sthash.tTm5P81x.dpuf