{"id":121566,"date":"2024-01-26T10:48:00","date_gmt":"2024-01-26T14:48:00","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=121566"},"modified":"2024-01-26T15:36:51","modified_gmt":"2024-01-26T19:36:51","slug":"rory-sutherland-alchemy","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/rory-sutherland-alchemy\/","title":{"rendered":"Rory Sutherland&#8217;s Alchemy: The Dark Art and Curious Science"},"content":{"rendered":"\n<p>How effectively does science predict human behavior? Does reason or irrationality account for the decisions people make? What&#8217;s the true secret of persuasion?<\/p>\n\n\n\n<p>Rory Sutherland&#8217;s <em>Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life<\/em> argues that contemporary economic and political theories are flawed. They hinge on reason as a predictor of human behavior, so any attempts to persuade people using reason are doomed to fail.<\/p>\n\n\n\n<p>Continue reading for an overview of this thought-provoking book that could cause you to change the way you and your business operate.<\/p>\n\n\n\n<!--more-->\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-overview-of-rory-sutherland-s-alchemy\">Overview of Rory Sutherland&#8217;s <em>Alchemy<\/em><\/h2>\n\n\n\n<p>Throughout our modern age, science and reason have expanded our understanding of the universe and created technological marvels, yet they\u2019ve proven less successful at predicting and guiding human behavior. Is this because humans are irredeemably irrational creatures? If so, irrationality can be useful as a tool for pushing agendas both big and small\u2014from something as trivial as selling candy bars to something as important as setting national policy.<\/p>\n\n\n\n<p>Rory Sutherland&#8217;s <em><a href=\"The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life\" target=\"_blank\" rel=\"noreferrer noopener\">Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life<\/a><\/em> was published in 2019. Sutherland suggests that, <strong>to solve economic and political problems, we should lean in to people\u2019s penchant for illogical (and even magical) thinking<\/strong>\u2014not to con the public, but to be more persuasive through an understanding of how the human psyche works. Like ancient alchemists who tried to use magic to change lead into gold, business and political leaders can use the power of <a href=\"https:\/\/www.shortform.com\/blog\/psycho-logic\/\">unreason<\/a> to tackle the issues of the modern world.<\/p>\n\n\n\n<p>Sutherland is the vice chairman of the British advertising firm Ogilvy &amp; Mather. He joined the firm in 1988 after graduating from the University of Cambridge. At Ogilvy, Sutherland merged commercial advertising with the latest in behavioral science research to pioneer new approaches to \u201chacking\u201d the human mind\u2014a combination of persuasive forces that has applications beyond the realm of selling products. After all, says Sutherland, the world of advertising is the largest social science lab that the human race has ever produced, and anyone involved with setting economic and government policies ought to pay attention to its findings.&nbsp;<\/p>\n\n\n\n<p>We\u2019ll examine why Sutherland believes that conventional logic and reason fail as predictors and persuaders of human behavior. These failures include the <a href=\"https:\/\/www.shortform.com\/blog\/faulty-assumptions\/\">faulty assumptions<\/a> of standard economics, the peculiar quirks of human perception, and the idea that meaning is more important to the mind than solid fact. We\u2019ll then cover Sutherland\u2019s recommendations on how to leverage the mind\u2019s magical thinking to influence human emotion and behavior.<\/p>\n\n\n\n<p>Along the way, we\u2019ll flesh out Sutherland\u2019s points with practical examples, delve into the underlying research on behavioral psychology, and discuss the implications of leaning into irrational thought as a way to influence the public.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-when-reason-fails\"><strong>When Reason Fails<\/strong><\/h3>\n\n\n\n<p>To be clear, Sutherland doesn\u2019t attack logic as a tool for scientific understanding, but he warns against using pure rationalism as the only method for guiding policy and business decisions. Humans, after all, are illogical beings, so <strong>any solution to human-centered problems must factor unreason into the equation.<\/strong> We\u2019ll look at the fallacies that commonly occur when applying strict logic to human behavior, why modern economics gets on the wrong track, how human perception differs from objective reality, and why the creation of meaning governs human behavior more than statistics or logical facts.<\/p>\n\n\n\n<p>When we rely on classical logic, we use well-defined data points to reach conclusions and achieve clear-cut objectives. Sutherland points out that the world our brains evolved in is more uncertain than that process allows for. Rationalists like to reduce problems to simple approximations that logic can deal with, but in practice, our minds make judgments based on trade-offs, nuance, and a hazy, big-picture understanding of the world.<\/p>\n\n\n\n<p>The irrational ideas and behaviors that our minds come up with aren\u2019t meant to be perfect or even correct\u2014<strong>the purpose of the <a href=\"https:\/\/www.shortform.com\/blog\/the-unconscious-mind\/\">unconscious mind<\/a> is not to determine the truth of the world, but to promote our survival as a species.<\/strong> It often does so using unfair bias, faulty heuristics, and magical thinking. Sutherland argues that, instead of treating these reactions as defects in the human psyche, our <em><a href=\"https:\/\/www.shortform.com\/blog\/how-to-persuade-others\/\">unconscious logic<\/a><\/em> is a lever that we can use to persuade people and influence behavior that\u2019s more powerful than reason alone. Ignoring the unconscious blinds us to potential pitfalls as well as unexpected, \u201cirrational\u201d solutions.<\/p>\n\n\n\n<p>Another issue with using logic to solve problems is that it\u2019s <em>such <\/em>an effective tool that any commonplace problems that have logical solutions have already been solved. If new problems arise that yield to logic and reason, we\u2019re able to solve them remarkably quickly. As a logical result, <strong>the problems we\u2019re left with are the ones that don\u2019t yield to simple logic<\/strong>\u2014from enticing consumers to buy a new brand of hot dog to convincing voters to support a vital government initiative. Unfortunately, says Sutherland, many of our leading economic and political decision-makers are so invested in logic and reason, they\u2019ve blinded themselves to unconventional solutions that don\u2019t fit into the tidy box of assumptions their logic is based on.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>The Fallacies of Logic<\/strong><\/h4>\n\n\n\n<p>When applying conventional logic to any situation, your results are only as valid as the assumptions on which your logic is based. Sutherland argues that this is where CEOs, economists, and politicians fail\u2014by misunderstanding where logic fits in the knowledge-generation process and by underestimating the complexity of people and their social interactions.<\/p>\n\n\n\n<p>The first mistake that business leaders and social scientists make is in thinking that logic and reason come before finding solutions when, in fact, the opposite is often true. In the physical sciences\u2014those most associated with hard logic\u2014the most important discoveries are often happy accidents, for which scientists use logic <em>after the fact<\/em> to explain their observations. Discovery and logical explanation are two separate facets of scientific understanding, and either one can come before the other.<\/p>\n\n\n\n<p>Despite the role that blind luck often plays in advancing our understanding of the world, experts in fields like economics and political theory routinely devalue the importance of random chance and counterintuitive discovery. Sutherland suggests that <strong>it\u2019s a common mistake in the social sciences to demand that rational explanations come first,<\/strong> thereby closing the door on counterintuitive discoveries and solutions to problems that sound crazy on the surface.<\/p>\n\n\n\n<p>The next common error Sutherland mentions is when people try to shoehorn the social sciences and business <a href=\"https:\/\/www.shortform.com\/blog\/methods-of-decision-making-crucial-conversations\/\">decision-making<\/a> into the strictly logical framework of the physical sciences and engineering. The latter disciplines rely on universal laws, but Sutherland asserts that <strong>human systems are so incredibly complex that universal laws don\u2019t apply.<\/strong> So much of human behavior depends on context cues, selective perception, and unconscious, evolutionary responses that any attempt to use absolute rules to determine how and why humans act the way they do is certain to produce erroneous results. Nevertheless, the idea that human behavior can be explained by simple statistical models is the underlying basis of much economic theory.&nbsp;<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Economics Is Wrong<\/strong><\/h4>\n\n\n\n<p>Sutherland insists that, for the most part, <strong>the study of economics is completely detached from the realities of human behavior. <\/strong>Instead, economists simplify human interactions so that they\u2019ll fit into mathematical models, then use those models to make logical predictions that don\u2019t account for the underlying messiness of human behavior. Despite the work of scientists such as Kahneman to debunk traditional economics, Sutherland contends that economists and business leaders still rely on two long-disproven ideas\u2014that people are consciously aware of their motivations and that they make rational decisions based on achieving their stated desires.<\/p>\n\n\n\n<p>Faulty \u201crational\u201d assumptions don\u2019t just harm the public, they do a disservice to the businesses that make them. For instance, many industries rely on market research to determine what products and services to offer, but market research rests on the assumption that people know the reasons behind their decisions. To find the real reasons for consumer behavior, Sutherland argues that businesses need to drill deeper than superficial market questionnaires, sometimes asking questions to which consumers and businesses <em>think <\/em>they already know the answers. Sutherland argues that <strong>unconscious motivations are consumers\u2019 real driving factors,<\/strong> and any logical explanations they give for their choices are rationalizations provided after the fact.<\/p>\n\n\n\n<p>Despite the documented power of the unconscious, many economic models are based on the assumption that people make conscious, rational decisions to maximize the chances of achieving what they want. Sutherland writes that nothing could be further from the truth. Many of the choices people make seem completely irrational on the conscious level\u2014<strong>it\u2019s only when we understand our unconscious drives that human behavior starts to make sense.<\/strong> Unfortunately for economists, we can\u2019t jot down our unconscious motives on a survey or enter them as data points into a spreadsheet, which is why unconscious factors are largely ignored by decision-makers in business and government.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Perception Versus Reality<\/strong><\/h4>\n\n\n\n<p>According to Sutherland, the key to leveraging the unconscious mind is to manipulate people\u2019s perception of events, much like a magician performing sleight of hand. This works because, as neuroscience has shown, human perception can differ greatly from objective reality. Sutherland discusses the importance of understanding human perception, the functions that <a href=\"https:\/\/www.shortform.com\/blog\/cognitive-heuristics\/\">psychological biases<\/a> serve, and how meaning and language are vital tools for engaging perception to positive advantage.From an economic standpoint, understanding human perception is key because in many cases, it\u2019s cheaper to employ psychological solutions than to engineer costly \u201cpractical\u201d fixes. In Sutherland\u2019s words, <strong>it\u2019s simpler to change people\u2019s <a href=\"https:\/\/www.shortform.com\/blog\/perceiving-reality\/\">perception of reality<\/a> than to change reality itself.<\/strong> To do this requires identifying the psychological causes at the root of human issues and desires, then creating the perception that a need has been addressed. The flipside of this coin is that \u201clogical\u201d solutions to real-world issues won\u2019t be effective if they don\u2019t also create the right perception. Right or wrong, how people <em>see <\/em>a problem has to be dealt with before the problem itself.<\/p>\n\n\n\n<p>Sutherland says that, as annoying as the difference between human perception and objective reality can be, our <a href=\"https:\/\/www.shortform.com\/blog\/list-of-cognitive-biases\/\">cognitive biases<\/a> evolved for a reason. For example, our brains place disproportionate importance on anything that stands out as unusual. This derives from our survival instincts\u2014in the wild, any unexpected sound, movement, color, or smell might signify danger, and our minds reflexively focus and ramp up our attention on that particular thing. Even if our conscious reason might say there is no threat, our unconscious mind says, \u201cBetter safe than sorry.\u201d Sutherland says that <strong>it\u2019s a waste of time to argue with the unconscious\u2014it\u2019s far more productive to engage with it instead.<\/strong><\/p>\n\n\n\n<h5 class=\"wp-block-heading\">Why Meaning Matters<\/h5>\n\n\n\n<p>The key to understanding human perception is to recognize that our minds focus on what objects and events mean to us much more than their physical details. Sutherland writes that this particularly applies to how we value and react to things. The magic in engaging the unconscious mind lies in using the most unlikely, illogical, and sometimes outright silly tactics to alter how people perceive something\u2019s value, and thereby change their behavior. This is where unreason triumphs over logic\u2014<strong>by making an object or event seem outlandish, you instinctively draw the mind\u2019s attention to it and trick people into reframing their perception.<\/strong><\/p>\n\n\n\n<p>There are many ways to perform this magic trick, but Sutherland argues that the main ones involve language. Language is what we use to convey meaning\u2014for instance, by drawing attention to specific details of a product, to highlight one aspect of a political candidate over others, or to reframe a negative experience into a positive. Even the most glaringly illogical uses of language and meaning can have an outsized effect on how people <a href=\"https:\/\/www.shortform.com\/blog\/perception-of-the-world\/\">perceive the world<\/a>, and by extension, the experienced reality that our perceptions create.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>The Uses of Illogic<\/strong><\/h3>\n\n\n\n<p>Sutherland says that in any situation involving human beings, it\u2019s essential to acknowledge and tap into the instinctive, unconscious reasoning behind how people make decisions. Whether you&#8217;re selling a product, planning a business strategy, or trying to convince people to eat healthier food, <strong>the \u201cmagic\u201d of unreason can be far more persuasive than logical arguments and facts.<\/strong> Three so-called \u201cirrational\u201d mental processes that we\u2019ll explore include the use of subtle cues to signal trustworthiness, the <em>placebo effect<\/em> in which the mind can trick the body, and lastly the mind\u2019s tendency to make choices that are \u201cgood enough\u201d to achieve a given want, rather than striving for the best possible outcome.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>In Signaling We Trust<\/strong><\/h4>\n\n\n\n<p>The first persuasive tool we\u2019ll consider is <em>signaling<\/em>\u2014the things we do to demonstrate our intent and trustworthiness to others. <strong>The human mind uses signals as a shorthand from which to form broader judgments about people, groups, and institutions.<\/strong> By being deliberate about the signals you send, whether or not they seem rational on the surface, you can gain people\u2019s trust and nudge them in favor of whatever message you\u2019re trying to convey, even if they don\u2019t fully understand why they trust you and believe what you say. Sutherland explains the traits that make signals strong and effective, how signals are employed in the business world, and why signaling sometimes incurs short-term costs in the pursuit of long-term gains.<\/p>\n\n\n\n<p>Whatever it is that you want to signal\u2014that you\u2019re the right candidate for a job, that your toaster design is better than your competitor\u2019s, or that your social media empire doesn\u2019t <em>really <\/em>want to take over the world\u2014Sutherland says words and logical arguments aren\u2019t enough. A powerful signal that people will notice must:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>Be costly to the person or institution sending the message<\/li><li>Show some degree of creativity in the message\u2019s creation<\/li><li>Include some measure of attention-getting nonsense<\/li><\/ol>\n\n\n\n<h5 class=\"wp-block-heading\">Persuasive Absurdity<\/h5>\n\n\n\n<p>Talk is cheap, and people realize this. Sutherland says the cost in money, time, or resources to create a unique message shows a certain level of confidence and commitment that a simple verbal argument cannot convey. Likewise, the human brain is programmed to ignore the ordinary or expected. <strong>For a signal to cut through the noise of everyday life, it must contain an element of the unexpected<\/strong>\u2014and nothing stands out so much as the absurd.<\/p>\n\n\n\n<p>The idea that signals should contain some degree of nonsense is most easily demonstrated in advertising, writes Sutherland. Consider how many advertisements today contain a ridiculous or humorous element that has nothing to do with the product being sold, whereas more ads from decades ago focused on conveying logical reasons why a certain product or service was better. The ridiculous ad accomplishes two things\u2014it grabs your attention in ways a logical ad wouldn\u2019t, and it shows that the business running the ad believes enough in its product or service that it\u2019s willing to spend the money, time, and creative effort to tell you about it in an amusing way.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\">Show That You\u2019re Serious<\/h5>\n\n\n\n<p><strong>Powerful signals don\u2019t have to be silly, but they have to incur a cost to be believed.<\/strong> Sutherland gives the example of a business that spends extra money providing customer service above and beyond its industry\u2019s standard. This may not make logical sense from the perspective of short-term economic gains, but it does make sense if you assume the goal is to build unconscious trust in your consumers\u2014leading to customer loyalty and increased profits in the future. Consciously or not, people recognize when another person or a business puts aside their short-term, selfish interest. Since humans are a social species, we\u2019re hardwired to notice and believe any signals that demonstrate <a href=\"https:\/\/www.shortform.com\/blog\/commitment-to-community\/\">commitment to the community<\/a> as a whole.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Placebo Power<\/strong><\/h4>\n\n\n\n<p>Another common phenomenon in which the mind and body behave counter to reason is what\u2019s known as the placebo effect\u2014in which, for example, your body reacts to what you <em>think <\/em>is a drug, even if it\u2019s just a harmless sugar pill. Though using placebos can seem dishonest to the rational mind (aside from their role in medical testing), Sutherland argues that <a href=\"https:\/\/www.shortform.com\/blog\/placebo-effect-psychology\/\">the placebo effect<\/a> is a legitimate tool we can use to hack our bodies and minds to achieve various beneficial outcomes\u2014whether that\u2019s improved health or a better mental state. To make this case, we\u2019ll look at how the placebo effect works, the characteristics of effective placebos, and how the placebo effect manifests in areas of life beyond the medical field.<\/p>\n\n\n\n<p>Sutherland suggests an evolutionary explanation for the placebo effect. Our bodies evolved to live in harsher conditions than most of us experience in the modern world. For that reason, it didn\u2019t pay to be sick\u2014the body\u2019s immune response to illness temporarily weakens it, reducing short-term survival in the wild. According to this theory, our immune system only gives its full effort if we perceive that it\u2019s safe to do so. <strong>A placebo works by telling our body that it\u2019s safe to go into healing mode,<\/strong> and that doing so will likely be successful instead of leaving us vulnerable to predators.<\/p>\n\n\n\n<p>In a sense, taking a placebo is a form of self-signaling. Studies show <strong>the placebo effect can induce positive outcomes even if a medication isn\u2019t a placebo at all.<\/strong> Sutherland says this happens when a drug\u2019s <a href=\"https:\/\/www.shortform.com\/blog\/how-to-create-a-successful-marketing-campaign\/\">marketing campaign<\/a> highlights one specific effect\u2014for instance, that a specific variation of a painkiller is good for fighting headaches. The drug may be chemically identical to other versions on the market\u2014the only difference being the words on the box\u2014and yet, those who take it may actually feel a stronger reduction in headaches than if they\u2019d taken the exact same drug under a different label. Via the placebo effect, you can signal to yourself the outcome you want, and your body will comply.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\">The Shape of a Placebo<\/h5>\n\n\n\n<p>Sutherland writes that, as with other signals, a placebo\u2019s effectiveness depends on three factors:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>How much the placebo costs<\/li><li>How rare we believe the placebo is<\/li><li>How much effort is entailed in taking it<\/li><\/ol>\n\n\n\n<p>For example, consider a hypothetical herbal supplement that\u2019s supposed to increase your concentration. If it\u2019s cheap, easy to take, and available at any corner store, it won\u2019t be effective because you won\u2019t believe it. However, Sutherland suggests that if it\u2019s somewhat expensive, can only be found at specialty shops, and has to be taken with food, a hot beverage, or only at specific times of day, we\u2019re much more likely to believe in its power, and its \u201creal\u201d effects are more likely to kick in. Don\u2019t think of this as lying to yourself\u2014<strong>think of placebos as a way to hack your mind and body systems that you don\u2019t have conscious control over.<\/strong><\/p>\n\n\n\n<p>Placebos aren\u2019t limited to drugs you ingest. Sutherland argues that <strong>many of our ritualized and irrational behaviors send placebo signals to ourselves and others<\/strong> to produce a desired mental state or outcome. One example is a crosswalk button that doesn\u2019t affect an intersection\u2019s light cycle. The button is a placebo for reducing a pedestrian\u2019s impatience, giving them a <a href=\"https:\/\/www.shortform.com\/blog\/an-internal-locus-of-control\/\">sense of control<\/a>, and reducing the chance of them walking into traffic. Other examples include the objectively strange initiation rituals practiced by some clubs and organizations. The ritual triggers a placebo effect to heighten members\u2019 sense of shared community, and the strangeness of it makes your mind take notice.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>The Good Enough Solution<\/strong><\/h4>\n\n\n\n<p>The third puzzle piece of the mind that you can leverage when trying to influence people is our unconscious preference for safety over perfection. Much of economics relies on the assumption that when faced with a problem, people work toward a \u201cbest possible solution,\u201d but the human brain doesn\u2019t operate that way. Instead, <strong>the mind seeks out solutions that are <em>likely <\/em>to work while minimizing the possibility of failure.<\/strong> It\u2019s a subtle distinction best phrased by the truism, \u201cPerfect is the enemy of good.\u201d Sutherland discusses how the unconscious mind veers away from reason to <a href=\"https:\/\/www.shortform.com\/blog\/dealing-with-uncertainty\/\">deal with uncertainty<\/a>, what form this takes in a practical sense, and how the brain\u2019s desire for a \u201cwhatever works\u201d solution can be used as a tool for persuasion.<\/p>\n\n\n\n<p>Logical problem-solving works within the confines of well-defined problems where everything comes down to a handful of easily quantifiable variables. In real life, though, every decision involves uncertainty, which makes <a href=\"https:\/\/www.shortform.com\/blog\/logical-decision-making\/\">logical decision-making<\/a> exponentially more difficult. However, thanks to evolution, our brains cope with uncertainty far better than any mathematical model. Sutherland contends that in decision-making, <strong>reducing uncertainty is our unconscious goal.<\/strong> Rational optimization is impossible in a dark and scary world of unknowns, so instead, our brains try to be <em>mostly <\/em>right while reducing the odds of being catastrophically wrong.<\/p>\n\n\n\n<h5 class=\"wp-block-heading\">A World of Trade-Offs<\/h5>\n\n\n\n<p>One common way we protect ourselves from a world of uncertainty is to reframe a problem so that instead of asking the obvious question\u2014such as, \u201cWhat\u2019s the most efficient way to grow as much food as possible?\u201d\u2014we ask an alternate question that\u2019s easier to answer, such as \u201cWhat\u2019s the safest way to grow <em>something <\/em>so that I won\u2019t starve in case of a disaster?\u201d Most of the time, we\u2019re not consciously aware of the alternate questions that guide our decisions; therefore, Sutherland writes, these unconscious questions make many of our conscious decisions seem irrational. However, <strong>if you identify people\u2019s unconscious needs, you can address them directly<\/strong> in ways that you\u2019ll find are much more persuasive than dry, analytical logic.<\/p>\n\n\n\n<p>People expect life to be messy and that every decision will involve a trade-off. Sutherland says that to win people\u2019s minds, you should play into that expectation, even if \u201creason\u201d suggests otherwise. If you\u2019re selling a product or an idea that\u2019s objectively better than the alternatives, present it as a trade-off anyway. <strong>We\u2019re wired to believe that everything has a downside, so <a href=\"https:\/\/www.shortform.com\/blog\/how-to-create-a-narrative\/\">build a narrative<\/a> as to why that\u2019s the case,<\/strong> even if doing so involves some distortion. If you admit to imperfection while minimizing people\u2019s feelings of uncertainty, you\u2019ll be speaking to the unconscious mind\u2019s happy place. According to Sutherland, that\u2019s the magic to <a href=\"https:\/\/www.shortform.com\/blog\/how-to-make-a-sale-2\/\">making sales<\/a>, winning votes, and changing behaviors.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>How to Do Magic<\/strong><\/h3>\n\n\n\n<p>Understanding Sutherland\u2019s concepts is different from putting them into practice. The pressure of traditional economics is strong, and to find creative solutions outside it, you have to be willing to experiment with approaches that may seem silly. We\u2019ll show how some of Sutherland\u2019s ideas might be applied in two fictional scenarios\u2014one in which a business owner is trying to move unsold merchandise, and another in which a local politician is trying to revitalize his town. Their solutions include questioning assumptions, changing perceptions, addressing people\u2019s unconscious motivations, and bringing different ideas together in absurd combinations.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Scenario 1: Blind Date With a Beer<\/strong><\/h4>\n\n\n\n<p>In our first example, Kate is the owner of a local pub. As a beer aficionado, she\u2019s built up a stock of specialty imports from around the world, but unfortunately they haven\u2019t proved as popular as she\u2019d like, and most of her specialty beers sit unsold while her customers buy the more familiar brands over and over. <strong>Kate\u2019s empirical data says that her customers aren\u2019t interested in imported beers,<\/strong> despite various displays in her pub that logically explain the merits of each brew. Should Kate do the economically prudent thing, dump her unsold stock, and write it off as a loss? Or, as Sutherland might have her try first, can she perform a magic trick to make her customers change their drinking habits?<\/p>\n\n\n\n<p>Kate starts by following Sutherland\u2019s advice and <strong>questioning the assumptions her business is based on.<\/strong> Why do people order beer in her pub? Is it because they enjoy specific brands and her bar is the best place to get them? Of course not. If all they wanted to do was drink, it would be cheaper to buy what they want from the local liquor store and drink it at home. Kate realized that her customers\u2019 real motivation for coming to her pub was to socialize and have fun, and that for the most part, which beer they ordered was tangential to that goal. Therefore, to make her imported beers sell, she had to tie them to her customers\u2019 sense of fun and socialization.<\/p>\n\n\n\n<p>Kate announced a new event: \u201cBlind Date With a Beer.\u201d She\u2019d assemble random six-packs of bottles, mask the labels so each one was a mystery, and sell them only to groups of three or more. To make it feel special, she limited the event to only one night a week\u2014signaling scarcity to increase its value. It would be irrational for customers to spend money without knowing what they\u2019d get, but disguising the bottles tapped into the playful fun associated with low-stakes risk and surprise, like a game. By restricting the sales to groups, <strong>Kate tapped into the underlying socialization motive that brought people to her pub.<\/strong> After a while, the new event caught on, and Kate\u2019s stock of imported beers found a new clientele.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Scenario 2: Save Our Town, Save Our Team<\/strong><\/h4>\n\n\n\n<p>In our second example, Marcus is a newly elected small-town councilman who promised to revitalize the town\u2019s historic but crumbling business district. Many of the buildings on Main Street are abandoned, and the town can\u2019t afford to buy and restore the unused properties. Several long-time businesses remain, including a furniture store and a restaurant, but stiff competition from a new shopping center on the edge of the city is wearing them down. After a string of new tax incentives fails to attract businesses back to Main Street, Marcus is at his wits\u2019 end. Simple economics says that Main Street is doomed\u2014but according to Sutherland, <strong>a little psychological alchemy might turn economic lead into gold.<\/strong><\/p>\n\n\n\n<p>Marcus finds two psychological keys to work with\u2014the town\u2019s pride in its high school football team and the Main Street restaurant that\u2019s still in business. The two are unrelated except that both are closely tied to the town\u2019s sense of identity, especially for those who\u2019ve lived there their whole lives. <strong>Marcus plans to build an emotional link between the survival of Main Street and the football team\u2019s success,<\/strong> no matter how irrational or absurd that concept is. He paints a bleak picture of the kind that Sutherland says we\u2019re primed to believe, but if he can get the town\u2019s residents to associate shopping on Main Street with supporting the football team, it might breathe economic life into the district.<\/p>\n\n\n\n<p>He starts by inviting the football team to the restaurant for a pre-game dinner at the start of the football season, which he then makes into a regular event that more and more people attend to show support. At these dinners, Marcus talks about his memories of Main Street and wonders aloud how the town\u2014and by extension the football team\u2014will survive if the historic district dwindles. Since the town no longer depends on its historic district financially, <strong>there\u2019s no logical reason why one should affect the other,<\/strong> but Sutherland would point out that that doesn\u2019t matter. Several residents take the message to heart and form a committee to reinvest in Main Street. By tugging at heartstrings, Marcus turns the tide against cold economics.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>How effectively does science predict human behavior? Does reason or irrationality account for the decisions people make? What&#8217;s the true secret of persuasion? Rory Sutherland&#8217;s Alchemy: The Dark Art and Curious Science of Creating Magic in Brands, Business, and Life argues that contemporary economic and political theories are flawed. They hinge on reason as a predictor of human behavior, so any attempts to persuade people using reason are doomed to fail. Continue reading for an overview of this thought-provoking book that could cause you to change the way you and your business operate.<\/p>\n","protected":false},"author":9,"featured_media":121577,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[40,14,9],"tags":[1379],"class_list":["post-121566","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-books","category-management","category-psychology","tag-alchemy","","tg-column-two"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v24.3 (Yoast SEO v24.3) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Rory Sutherland&#039;s Alchemy: The Dark Art and Curious Science - Shortform Books<\/title>\n<meta name=\"description\" content=\"Rory Sutherland understands persuasion. 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