Using cognitive bias for effective marketing

04/07/2023

Deboleena Panja1

Using Cognitive Bias for Effective Marketing

04/07/2023

Deboleena Panja

2

Framing In a hypermarket there were two

different brand of meat are kept in one shelf

The cover of one brand says the meat is ‘99% fat free’ and the other brand says it is ‘1% fat only’

It was observed that, significantly more number of buyers picked up the brand which says ‘99% fat free’

04/07/2023

Deboleena Panja

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Loss Aversion

refers to people's tendency to strongly prefer avoiding losses to acquiring gains

04/07/2023

Deboleena Panja

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Availability heuristic Ease of recall, retrieve-ability and

presumed associations Ease of recall: Top of the mind

availability (TOMA)

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Representativeness Stereotyping, In-group Brand Extension uses this

Insensitivity to base rate/ sample size Misconception of chance Regression to the mean Conjunction fallacy

Deboleena Panja

04/07/2023

Deboleena Panja

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Conjunction Fallacy a combination of two is more probable

than just one

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Deboleena Panja

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Endowment Effect

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Ambiguity Effect the tendency to avoid options for which

missing information makes the probability seem "unknown”

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Deboleena Panja

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Backfire Effect when people react to disconfirming

evidence by strengthening their beliefs When our deepest convictions are

challenged by contradictory evidence, our beliefs get stronger

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Deboleena Panja

10

Bandwagon Effect the tendency to do as others are doing Eg: Movies with Big star cast ;)

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Deboleena Panja

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Anchoring tendency to rely too heavily on one

piece of information when making decisions

For example, when buying a car we might compare on grounds of price even though there are myriad other factors to take into account.

04/07/2023

Deboleena Panja

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Choice-supportive bias Tendency to search for or interpret

information in a way that confirms one’s preconceptions.

Tendency to retrospectively ascribe positive attributes to an option one has selected.

04/07/2023

Deboleena Panja

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Clustering illusion a tendency to see clusters of meaningful

patterns in a random jumble of info. Don't place too much emphasis on

short-term performance

04/07/2023

Deboleena Panja

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False-consensus effect Cognitive bias of a person who believes

other people think the same way they do

Marketers should specially be aware of this bias, as we sometimes think that we can know the consumer without any proper research done

04/07/2023

Deboleena Panja

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Forer or Barnum effect personality that supposedly are tailored

specifically for them, but are in fact vague and general enough to apply to a wide range of people.

Eg. Nike shoes

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Deboleena Panja

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References http://

www.businessdictionary.com/definition/false-consensus-effect.html

http://brandeminence.wordpress.com/2013/10/15/framing-effect-in-marketing-advertising/

https://www.cibcwg.com/c/document_library/get_file?uuid=45092816-5a63-4edc-aaf8-725ef19b658f&groupId=109423

http://www.abccopywriting.com/blog/2010/09/27/marketing-2020-vision