Because We Are Emotional Creatures

What do you think is the difference between success and failure of business? What do you say if asked to analyze a case of a restaurant doing great in the place where many other restaurants closed down successively in the past? I would imagine some improvements in pricing, targeting, etc., and check the hard data of the area, such as the number and type of household population, traffic volume by time of day, etc., but Rory Sutherland disagrees, in his book: Alchemy, with such a judgment made through logical thinking and observations. In the example described in the book, he proclaims it is nice tables and chairs in front of the restaurant that lead the restaurant to success.

Such nice tables and chairs (like our products) are too good to leave outside, and are put back every time after closing, which well works as a sign to indicate the opening of the restaurant. In addition, the author continued people would naturally assume the restaurant must offer good food and service because it pays attention even to furniture outside. That would make the believers of logical thinking like me say “No way! It just sounds like guesswork!” Replying to such criticism, he proclaims it is small psychological factors that make a big difference between success and failure because we are more likely to make moderate decisions instinctively and subconsciously.

According to the author, logical solutions through data-analyzing, streamlining, optimizing, etc. are not always invincible, and we should focus more on psychological factors for problem solving. As writing above, I’m a kind of believer of logical thinking, but I like his idea, because I know we very often behave irrationally and illogically, which, I believe, makes us human. Just to be clear, it’s not only because I can bring this article to a close with the recommendation of our furniture 😊

Shungo Ijima

He is travelling around the world. His passion is to explain Japan to the world, from the unique viewpoint accumulated through his career: overseas posting, MBA holder, former official of the Ministry of Finance.

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