- Joined
- Dec 26, 2017
- Messages
- 24,372
- Reaction score
- 25,910
- Handicap
- 17.2
I regularly listen to an economics podcast called EconTalk and this week there was an advertising executive on the show talking about market choice architecture and how that may lead people to make inefficient choices. Many of the examples he gave focused on the use of metrics and how they leave out a lot of things people actually value. He talked about the real estate web sites and how they focus on quantifiable things like # of rooms, # of baths, square footage, nearby prices, and school ratings which is fine, but these are certainly not all encompassing of the things people look for in a home. He mentioned layout, architecture, the scenery of the lot, etc. that cannot be measured. He started talking about products in general and mentioned how sometimes the algorithm for decision making can focus so much on measurable's that everyone starts making products that focus solely on the measurable.
I could not help but think about the market for selling irons in golf. The choice architecture is basically a hitting bay in a store and a selection of 7 irons. Of course there are a lot of numbers that come from this setup but the big number is always distance and thus the manufacturers have continued to spit out 7 irons that go farther and farther. Most people when they go to buy new irons think that they want a set that is easier to play and will help them play better golf, but what they end up buying is the set with the 7 iron they hit the farthest. Does finding the longest 7 iron match buying the best set of irons for your game? Are these answering the same question or have we set up the market for irons incorrectly?
I could not help but think about the market for selling irons in golf. The choice architecture is basically a hitting bay in a store and a selection of 7 irons. Of course there are a lot of numbers that come from this setup but the big number is always distance and thus the manufacturers have continued to spit out 7 irons that go farther and farther. Most people when they go to buy new irons think that they want a set that is easier to play and will help them play better golf, but what they end up buying is the set with the 7 iron they hit the farthest. Does finding the longest 7 iron match buying the best set of irons for your game? Are these answering the same question or have we set up the market for irons incorrectly?