Decision-Making Influences

Good decision-making involves knowing your goal(s), evaluating the importance of each goal, arraying the options, evaluating how each option will meet the goal(s), picking an option and later using the consequences of your choice to modify the way you evaluate future options. (Page 47)  While the process seems straightforward, the abundance of information available-some good and some not so good-makes it more difficult to evaluate options.  We are bombarded with information, whose purpose is to make us believe that one product, service or point-of-view is superior.  It's more difficult to determine which is most relevant to our specific goal(s) because there so much to consider.

Schwartz describes two types of decision-makers, the maximizers that look for the best and the satisficers who seek a good-enough solution.  The maximizers tend to be less satisfied with their decisions because they are always concerned that there is a better option they have overlooked.  Satisficers, however, are content with an excellent option, and do not worry that a better option exists somewhere beyond their field of vision.

"Losses hurt more than gains satisfy," according to research cited by Schwartz.  Buyers take greater risk to avoid a loss than they will take to achieve a gain.  "People tend to avoid taking risks-they are "risk averse"-when they are deciding among potential gains, potential positive outcomes. (Page 69)  Given the option to choose a gain of $100 or the chance to flip a coin for either $200 or nothing, most people choose the sure thing; however, if the choice is to flip a coin to determine whether to lose $200 or nothing, or take a sure loss of $100, most will flip the coin and hope for no loss. 

Read Full Article