Waiting time in Mr. Idli is greater than the waiting time in Pepsi Ungal Choice . Frustrated by this sluggish response , I was scrutinizing the menu card though I had decided my dish already. That menu card had some thing notable.
- Idli Unlimited 60 rs
- Dosa Unlimited 120 rs
- Dosa with Idli unlimited 120 rs
I am not sure whether idli for rs 60 is worth than dosa for rs 120. But I am pretty sure that dosa with Idli is better than dosa alone since both are offered at the same price. When no one would ever choose the second option (dosa unlimited for rs 120) , why do they have that option? Does it really have any reason behind that?.
In a week’s time I happened to read a book called “predictably irrational” which changed my way of looking at the world!! It’s all about relativity. The book says, whenever we need to choose from choices , we always go for the things which are “relatively better” among other options and this nature of us is being exploited by the economists. According to that book , The introduction of dosa for 120 rupees ( of course that book had a different set of examples illustrating the same scenario) is to deceive the customers. When we find it hard to compare between two different entities (idli and idli with dosa), they provide a way to do. By introducing an inferior option called Dosa unimited (-B) , It not only makes us to feel Dosa with idli (B) is better than Dosa Unlimited , We also feel Dosa with idli for rs 120 (B) is better than Idli Unlimited (A).
EOD sales report Before and After the introduction of “dummy item”
After:
| Item | Cost | No of order /day |
| Idli Unlimited | 60 | 16 |
| Dosa Unlimited | 120 | 0 |
| Dosa with Idli Unlimited | 120 | 80 |
Before:
| Item | Cost | No of order /day |
| Idli Unlimited | 60 | 56 |
| Dosa with Idli Unlimited | 120 | 40 |
Without doing any significant change, the introduction of a dummy item pushes up the sale to a great extent. Ideally , when they remove an item ordered by Zero persons, the orders for the respective items should not change!!!!.
For example some one offers you a 10 rupee gift coupen for free or a 20 rupee gift coupen for 7 rupees. what will you choose? to be honest I would have choosen 10 rupee coupen for free. Even though the second option (20 rs coupen for 7 rs) is technically advantageous, it’s human nature to be lured by the term called “free”.
“Anchoring” plays an important role. Assume, if an auto driver asks you rs 300 to go to Majestic from Domlur, You argue with him and since you are one hell of a negotiator, you reduce the amount to 180. A win-win situation for both since you don’t know the absolute hire for that distance. 180 rs has become an anchor for future auto trips of same distance. The next time , even if a driver asks 200 you would agree since an extra rs 20 is not a big deal.
So this is my advice to you friends..
This is human nature and our manager is not an exception. When it comes to appraisal, he might use the same relativity theory. Don’t feel shy. Be an auto wala, tell him that you had exceeded all expectations and been an outstanding performer throughout the year. He would point out your small errors and end up with exceeded most of the expectations. A win-win situation of both of you!!!
Guys , Predictably irrational is a very very good book to read… 
P.S: Thanks to Anbu for suggesting me that book. One more to him for introducing FlipKart to me :)
Gethu post !!
Bengaluru wala agita pola ?? 
Thanks
and yeah . Vera Enna panrathu 
Sooper machi, nice one !
thanks machi
‘When it comes to appraisal, he might use the same relativity theory. Don’t feel shy. Be an auto wala, tell him that you had exceeded all expectations and been an outstanding performer throughout the year. He would point out your small errors and end up with exceeded most of the expectations. A win-win situation of both of you!’
Firstly,
Will you dare to apply this principle with your boss?????
Just give a try and post the results.
Secondly,
You step into the shoe of a boss(!!!!!!!) and you will find the difference between the performer and non performer. A good boss will definitely find the difference.
For First Question:
Since I don’t know whether my manager is following my blog or not, This question cannot be answered
Second Question:
agree with you.. But what if he has a big team and he din keep track of all my periodic achievements. This approach will hold good only if he doesn’t have any absolute ratings in his mind and he just wants to analyse from my self appraisal. So If I assess myself as extremely good, then that rating will act as an ‘anchor’ in his mind and he will try to reduce the marks from that.
Say, If an auto driver asks you 300 rs you will not argue with him for rs 60 . Would you?
For Ur Second Answer:
Self appraisal is a part of annual appraisal and hence cannot agree with your argument.Appraisal is not about reducing marks. You will know this when you assess somebody’s appraisal.
Question of arguing with Auto driver depends on the situation. If you are in urgency you will pay otherwise not. You will know approximately the fare from Domlur to Majestic. Paying Rs 300 instead of Rs 60 doesnt arise. Be little realistic.
My assumption is “most of the times” people doesn’t know what they really want and they just choose the relatively best option among the choices. If I know what i really want and I know what is the absolute value , these theories are invalid . In the auto-driver case , If you don’t know the fare and If he asks you 300 rs you will try to bargain . But not bargaining to rs 60. And hence the above on is absolutely realistic in most of the cases.
sema da…:)
Super !!
thank you both
@ eightpointsomeone: ‘If I know what i really want and I know what is the absolute value , these theories are invalid’
You said it right. When you really not in need of any coupon it is better to get it free than spending Rs 7. Why should you spend even a paise when you are really not in need of that.
We need to be rational in this material world to survive.
We learn many things by experience. Good to know that this book has given you such an experience.
Keep reading.
yeah definitely
and thanks 
Hey hi!!! Just stumbled upon your post.. I have nothing against your ‘predictably irrational’ part of your post, but about the trivial portions of it like
:P
1. The wait time at Mr.Idli. I guess you have to be your regular customer or something. Cos that placed served me dinner for the most of my 10 months at Vars and never once made me wait for long. In fact we were sometimes given special treatment.
2. You should also understand that Idli is not really the idea of a delicacy for many like myself. Idli would be the last thing I would eat on this planet. So, I am just saying that the Dosa unlimited is not totally a dummy menu item. It is also for people like me who would otherwise have to order a dosa plus idli unlimited without idlis… or more like saying, give me one plate gobi manchurian without gobi…:P:P
Good post btw….
-Clarity…
(kidding)
Thanks
My example “Mr. Idli” was fictional. I took that example to explain the “predictably irrational” behavior.
and Clarity :-O ?????