21A- Reading Reflection No. 2

1.  The general argument that is given in the book "Thinking, Fast and Slow." is the difference between system 1 and 2 thinking.  System 1 is the fast irrational thinking that we use all the time. This has pros and cons. It could mean running away from a loud noise that sounds like a gunshot, or not walking close to snakes because one has bitten you before. While it is good to be cautious, it is also sometimes wrong. The loud noise could be a tire popping, and the snake could be harmless. System 2 is the rational form of thinking, but it is not a feasible goal. System 2 thinking believes that the thinker has unlimited time, energy, and resources to make the best decision possible. So we can strive to think system 2, but we can also improve our system 1 thinking skills.
2. These ways of thinking are how my experience is enhanced in ENT 3003.
1. The first way is anchoring. This tactic is used to skew average results. When a jar of jelly beans is presented to you and you are asked if there are more than 500 jelly beans, and how many are actually in the jar... Your answer is more likely to be in the range around 500 because you are using that as a base to estimate on.
2. The second tactic is the science of availability. This is an illogical thought process is like being afraid of a terrorist attack because they are all over the news. In reality, the chances of being in a terrorist attack are nearly 0%. 
3. The third tactic to try and decide a decision for someone is Loss Aversion. Explaining to a person what they will lose if they don't do something is more powerful than what they will actually gain. There was a study done on teachers getting bonuses if test scores increase. Some of the teachers received the bonus if the scores were reached, and others were given the bonus up front. The difference with the teachers getting the bonus up front is they would have to pay back the bonus if they did not reach the goal. In return, the teachers who got the bonus at the beginning worked harder to get the test scores needed.
4. The last way decisions and mindsets are made are by framing. Which sounds better? You have a 10% chance of dying, or you have a 90% chance of living. Both are the same, but the likelihood of dying makes you not want to make the risk of doing the activity.
3. I would make an activity that would make the consumer want to buy your product/service through system one tactics. This form of marketing is very useful. After promoting the product/service, you would test it on prototypical customers to see if they are more inclined to buy.
4. The biggest takeaway would definitely be the loss aversion. That is a powerful move because the mind hates losing. I will be more proactive when making decisions to see if someone is trying to pull at my mind to make an illogical decision.