All posts by : Cultural Relevance Team

The Decoy Effect, first demonstrated in 1982 by Joel Huber and others at Duke University, explains how when a customer is hesitating between two options, presenting them with a third “asymmetrically dominated” option that acts as a decoy will strongly influence which decision they make. An option can be defined as asymmetrically dominated when it is completely dominated by (i. e. definitely inferior to) one option and only partially dominated (i. e. inferior in some aspects) by the other. The asymmetrically dominated option is a decoy serving to increase preference for the dominating option – the one we really want the consumer to choose.

For example, imagine you want to buy a car and the seller shows you two models: car A that has relatively less features but a low price and car B that, on the other hand, has more features but is therefore more expensive. The Decoy Effect will come in to play if the seller now shows you a third car: car C has more features than car A but still a lot less than B and is only marginally less expensive than car B. With these comparisons in mind, car B will stand out as being by far the superior option and deal.

This cognitive bias takes place because our brains don’t evaluate things based on absolute values but instead through inter-group comparisons. When a customer has to choose between just two products, it can make for a difficult decision. In the aforementioned situation for example, the two initial cars on offer really had nothing in common in terms of price, quality or features offered which makes it difficult to draw an effective comparison.

The customer can’t clearly see which is the “better” offer because they are offering totally different benefits: one a good price but one better quality. By introducing the third option though, a more relevant point of comparison is offered (even if it is distorted in order to sway the decision making process a certain way). The fact that the third option offers a lot less for a small difference in price suddenly made car B seem like the outstanding option in terms of value for money.

This theory has vast applications in sales and web marketing and can be applied to anything from pricing in your ads to pricing on your sales page or to determine which products should be shown together on your main products page.

The Curse of Knowledge was first studied by economists Camerer, Loewenstein & Weber in 1989. This cognitive bias leads people who are better informed on a subject to find it almost impossible to consider that subject from the point of view of someone who doesn’t know as much about it. This often means that concepts, ideas and information aren’t presented clearly enough because the person presenting it presumes a certain level of knowledge and comprehension from their audience.

Once you know something it is impossible to put that knowledge aside and you also forget that not everyone has the same information as you so will not necessarily see things the same way or understand something as quickly. Psychologist Elisabeth Newton conducted a famous experiment in 1990 whereby participants were divided in to two groups with one group “tapping” well-known songs whilst the other group listened and attempted to identify these songs. The group who were tapping estimated a successful guess rate of at least 50% whilst the outcome was actually only 2.5%. The fact that those who were tapping the songs already knew which song it was – and, of course, could hear this song in their heads whilst tapping – meant that they were biased towards believing the answer was obvious and just couldn’t comprehend how few people would guess incorrectly. Of course the group listening were just hearing a series of discordant and therefore mostly unidentifiable taps.

The implications of this in the commercial world are vast as it is often a well-informed party who sets pricing for an object or service (a wine expert picks and values wine, a dressmaker sets prices for luxury fabrics etc.) and, due to the Curse of Knowledge, they find themselves unable to anticipate how the most likely lesser-informed customer will perceive their valuation. This often leads to high-quality goods being overpriced for the market and low-quality goods being underpriced.

It is also essential to be aware of – and try to counteract – the bias of the Curse of Knowledge in any kind of business communications. Everyone who works for a certain company will have a similar level of knowledge concerning the basic elements of what that company does. However, it is important to remember that the people you are communicating with outside of your company – customers, other businesses, or even other people within the same field – may not necessarily understand certain phrases, systems or ideas. Keeping communications clear and easily comprehensible for everyone is an important factor in making your website and services both accessible and engaging.

The Contrast Principle, first studied by Robert Cialdini in his 2007 book The Psychology of Persuasion, explores the way in which our perceptions are formed by using comparison techniques. When we experience similar things in succession or simultaneously, we evaluate the lesser or greater value of the second through direct comparison with the first.

This Contrast effect will therefore lead to an enhanced or diminished perception of the second thing dependent on how we viewed the first. For example, when you pick up a heavy box and then a lighter one, the second box will appear lighter than it really is. This Contrast effect is due to the fact that our brain evaluates things based on the mode of comparison that is most easily accessible at that given moment, rather than the most suitable one. In other words, we tend to evaluate by comparison to accessible referencing rather than by using more correct, absolute values, as these aren’t readily available for our brains to utilise, and this leads us to make biased judgements.

The Contrast effect is applied to all manner of judgements we might make on a day-to-day basis. For instance, if at a cocktail party you talk to an unattractive person and are then joined by an average-looking person, you will judge the average-looking person to be more attractive than they really are and than you would have perceived them to be had you seen them on their own before you had this unreliable scale of comparison in mind. In this way, the Contrast effect can affect our judgements in relation to people, products, market values, and the values of many other attributes and characteristics. The contrast principle has many applications in sales and marketing and is often utilised by brands to influence customers’ perceptions of their products. For example, a technique often used by salesman is to offer either a low quality or, in contrast, a luxury overpriced item alongside the one they really want you to buy in order to influence your perception of this target product as being a good value deal in comparison to the other being shown.

The Commitment and Consistency principle is one of the six principles established by Cialdini (1984) in his book Influence: The Psychology of Persuasion. It describes the way in which people want their beliefs and behaviours to be consistent with their values and self-image. Firstly, we tend to view consistency as an attractive social trait and as indicative of someone being rational, trustworthy and stable, and so we all want to be seen to be consistent. Secondly, the Commitment and Consistency principle is a mental shortcut we use to simplify our decision-making: we are given so many decisions to make daily that we reduce this amount by using a past decision as reference for subsequent related choices. The consequence of this cognitive bias is that we act in ways that are consistent with our initial action or thought, so that when we commit to something or someone, we stick to it. We also try to behave in ways that are consistent with the image we have portrayed to others, and with the public image they have of us.

For example, if an individual is thought of as someone who knows about politics, he or she is more likely to participate in subsequent political conversations, even if they have no real interests but simply want to remain consistent with this public perception of their character. In the same way, children who are often congratulated by their parents for achievements and working hard are more likely to continue to work hard and do well in order to remain consistent with this external perception of themselves.

The Commitment and Consistency principle has many applications in marketing strategies. Encouraging customers to make a small commitment to your brand or site (by offering them something easy to complete and/or free – perhaps a free trial or simply signing up for membership in order to get a discount) you are then in a better position to motivate them to continue on engaging with your site as they will feel compelled to remain consistent with this initial behaviour.

Cognitive friction theory, developed by Sweller (1988), refers to the total amount of mental effort being used in the working memory. Sweller described the process as having three main parts: sensory memory, working memory and long-term memory. Your sensory memory receives all the information from your daily actions and activities (sounds, smells, everything you see, etc.). Then that sensory information passes into your working memory which either processes or discards it. If your brain processes the information, tries to categorise it, learn it, or put it in a “knowledge structure/schema”, this information then passes into long-term memory. Once this has taken place, we begin to process the information automatically and without much cognitive effort.

Cognitive friction theory is based on the fact that individuals are limited in their working memory capacity and so understand and learn more easily through instructional methods that avoid overloading it with superfluous information. In other words, heavy cognitive load can have negative effects on task completion and lead to errors and interference in the task. Learning happens best under conditions that are aligned with this human cognitive architecture.

For example, studies have shown that the widespread use of laptops and cell phones in classrooms has generally reduced academic success. Indeed, it increases the distractions available for students (who will inevitably check Facebook and emails etc whilst also taking part in the class) which in turn increases their overall cognitive load and reduces space in their working memory for effective reception of important information.

Cognitive friction theory has many applications in web marketing, especially with the continuous development of new technologies. Some navigation functions risk overloading users and driving them into a state of cognitive strain which then lessens the likelihood of them taking desirable actions.

Cognitive ease or fluency is the measure of how easy it is for our brains to process information. The Cognitive ease associated with something will alter how we feel about it and whether we are motivated to invest our time and effort in it. The Nobel prize-winning Economist Daniel Khahneman explains in his book Thinking, Fast and Slow (2011) that our brains have two modes of thinking: the first that operates automatically and quickly, with little or no effort and no sense of voluntary control, and a second system that pays more conscious attention to information presented, especially in the case of that which demands more cerebral effort such as complex calculations for example.

When cognitive ease diminishes, because the mental effort required is too much or too complex, we engage this second system of “effortful mental activity” and switch to a state of cognitive strain. The Cognitive ease principle reveals that when people have to switch to the second system of thinking, causing cognitive strain, they become more vigilant and suspicious. It results in a decrease in confidence, trust and pleasure involved in completing the mental action. In other words, people are happier and more receptive towards familiar and easily understandable situations in which they feel safer, more confident and at ease.

For example, when shopping during a sale, the way the prices are marked up will greatly affect people’s attitude and interaction with the products (and the likelihood of purchases being made). If the sale prices are easy to understand using percentages (simply “- 50%” for example) or with the new sale prices already calculated for you (“now 20 pounds only” for example), then shopper’s brains will react in an automatic and positive fashion. However, if it’s necessary to work out a complex mental calculation to understand what the offer is (for example, working out what 12% off £27.28 would be) then the brain will switch to the “second system of thought”. This means that we will pay more attention to the calculation and therefore the real benefits of the offer and start questioning whether it is actually a good deal or not, whether you really need another pair of shoes, etc. The more cerebral effort we demand from our customers, the more of a negative and suspicious reaction we will automatically evoke.

The Cognitive ease principle has many applications in marketing. For example, psychological studies have found that shares in companies with easier-to-pronounce names perform better than those with difficult-to-pronounce names. In online marketing, any possible elements that can simplify a website should be used: infographics, intuitive web design, easy-to-read font, and so on.

Cognitive dissonance refers to a situation involving conflicting attitudes, beliefs or behaviours. Studied notably by Festinger (1957), this theory implies that when there is an inconsistency between attitudes, beliefs or behaviour, we are motivated to change something in order to eliminate this dissonance. This dissonance produces a feeling of discomfort that we automatically strive to reduce by restoring the balance. In other words, when we feel like our thoughts, feelings or actions are in conflict, Cognitive Dissonance sets in and gives you the uncomfortable feeling that something isn’t quite right. Dissonance can be resolved in one of three basic ways: change of beliefs, change of actions or change of perception.

For example, people who smoke are aware of the dangers smoking presents to their health and this presents a cognitive dissonance. In order to reduce this dissonance they can either change their behaviour (stop smoking), change their beliefs (trying to find stories about how many smokers live to an old age to challenge their conceptions), or change their perception of smoking (by telling themselves that it doesn’t matter if it damages their health as “we’ve all got to die of something” and “smoking makes me happy so it’s worth the risks”, etc.).

Cognitive dissonance principle has consequences for marketing strategies. For example, how well consumer satisfaction aligns with consumer expectation will affect how likely they are to be loyal to a product or service. When they don’t meet, it is called “post-purchase dissonance”. It is therefore important to understand and effectively handle the expectations and grievances of both your current and future customers.

Have you ever made a decision, only to find yourself rationalizing it afterward? This phenomenon, known as choice-supportive bias, is a cognitive bias that affects our perceptions of our choices. In this article, we’ll take a closer look at what choice-supportive bias is, how it works, and how it can affect our decision-making processes.

What is Choice Supportive Bias?

Choice-supportive bias, also known as post-purchase rationalization, is a cognitive bias that causes us to view our choices as more positive after we have made them. This bias can manifest in a number of ways, such as seeing the chosen option as more attractive or desirable than it actually is, or downplaying the qualities of the options we did not choose.

This bias is particularly strong when the decision is important or has significant consequences, such as choosing a job or a partner. It can also be more pronounced when the decision is difficult, as we tend to justify our choices more strongly when we feel that we had to weigh multiple options.

How Does Choice Supportive Bias Work?

Choice-supportive bias works by affecting our memory of the decision-making process. When we remember our decisions, we tend to focus on the positive aspects of the option we chose and the negative aspects of the options we did not choose. This can create a distorted perception of our choices, making the chosen option appear more favorable in retrospect.

The bias is also driven by our desire to reduce cognitive dissonance, which is the discomfort we feel when we hold two conflicting beliefs or values. When we make a decision, we may experience cognitive dissonance if we feel that we have made the wrong choice. To reduce this discomfort, we may unconsciously reinterpret the decision to make it seem like the right choice.

Examples of Choice Supportive Bias

Choice-supportive bias can be observed in many different contexts. For example, imagine you’re considering two cars to purchase. You ultimately choose Car A, but after the purchase, you start to notice flaws in the car. However, instead of feeling regretful, you may start to rationalize your decision, saying things like “Well, at least it gets good gas mileage” or “It was a good deal.”

Similarly, this bias can also be seen in political decision-making. After an election, people who voted for the winning candidate may see them as more competent and effective than they actually are, while those who voted for the losing candidate may see them as less competent and effective.

How to Overcome Choice-Supportive Bias

While it may be difficult to completely overcome choice-supportive bias, there are some strategies that can help reduce its impact. One such strategy is to seek out diverse perspectives and information before making a decision, as this can help prevent us from becoming too invested in a particular option.

Another strategy is to engage in self-reflection and examine our motivations and biases. By being aware of our tendency to justify our choices, we can take steps to counteract it and make more objective decisions.

Choice-supportive bias is a powerful cognitive bias that can affect our decision-making processes and perceptions of our choices. By understanding how this bias works and taking steps to mitigate its impact, we can make more informed and objective decisions that are based on our true values and priorities.

Making decisions can be a daunting task. From small choices like what to wear to big decisions such as buying a home or choosing a career, every choice we make has an impact on our lives. But what happens after we make a decision? How does it affect our psyche, and what role does it play in our lives? This is where the concept of choice closure comes into play.

What is Choice Closure?

Choice closure is a psychological phenomenon that occurs after we make a decision. It is the feeling of closure or finality that we experience once we have made a choice. It is the sense of relief that comes after we have made a decision and the process of choosing is over.

Choice closure is a powerful force that influences our behavior and emotions. Once we have made a choice, our brain experiences a sense of closure, and we become more committed to that decision. This commitment makes it easier for us to follow through with our choices and reduces the likelihood of second-guessing ourselves.

The Psychology of Decision Making

Making decisions is an essential part of life. From deciding what to eat for breakfast to making career choices, every decision we make has an impact on our lives. However, the process of decision making can be stressful and challenging.

According to psychologists, there are two types of decision-making processes: intuitive and rational. Intuitive decision making relies on gut instincts, emotions, and past experiences, while rational decision making is based on logic, reason, and analysis. Both processes have their pros and cons, and the type of decision-making process used depends on the situation.

The Science of Choice Closure

Once we make a decision, our brain experiences a sense of closure. This feeling of closure is a result of the brain’s tendency to seek closure and order. The process of decision making creates a cognitive conflict that causes stress and anxiety. Once we make a decision, our brain resolves this conflict, resulting in a sense of closure and relief.

Studies have shown that the brain’s response to making a decision is similar to the response to completing a task. The sense of accomplishment that comes with completing a task or making a decision triggers the release of dopamine, a neurotransmitter that is associated with pleasure and reward.

The Impact of Choice Closure on Behavior

Choice closure has a significant impact on our behavior. Once we have made a decision, we become more committed to that decision, and we are less likely to change our minds. This commitment to a decision makes it easier for us to follow through with our choices and reduces the likelihood of second-guessing ourselves.

The power of choice closure can be seen in many areas of life. For example, once a person decides to quit smoking, they become more committed to that decision and are less likely to relapse. In contrast, people who are not committed to their decision to quit smoking are more likely to relapse.

How to Use Choice Closure to Your Advantage

Choice closure can be used to your advantage in many areas of life. Here are some tips on how to use choice closure to your advantage:

1. Make a decision: Don’t procrastinate or overanalyze. Make a decision and move forward.
2. Commit to your decision: Once you make a decision, commit to it. Believe in yourself and your ability to follow through.
3. Celebrate your decision: Celebrate your decision and the sense of closure that comes with it. Reward yourself for making a decision.
4. Move forward: Once you have made a decision, move forward. Don’t dwell on the past or second-guess yourself.

Have you ever noticed that people in a group often appear more attractive than they do individually? This phenomenon is known as the Cheerleader Effect and has been studied in the field of social psychology. As a growth hacker, understanding the Cheerleader Effect can help you optimize your marketing strategies and create more appealing campaigns.

What is the Cheerleader Effect?

The Cheerleader Effect, also known as the Group Attractiveness Effect, refers to the perception that people in a group are more attractive than they are individually. This effect is often observed in situations where people are viewed in a quick succession or a social context. When people are viewed in a group, their individual flaws or imperfections become less noticeable, and they appear more attractive as a whole.

The Cheerleader Effect has been observed in various settings, including in real life, in media and entertainment, and in scientific experiments. One such study conducted at the University of California, San Diego, found that people rated the same faces as more attractive when they were presented in a group rather than individually.

Why Does the Cheerleader Effect Happen?

The Cheerleader Effect happens due to a cognitive bias called the Gestalt principle of proximity. This principle states that people tend to perceive objects that are close to each other as part of a group rather than as individual objects. This means that when people are viewed in close proximity to one another, they are perceived as a collective rather than as individuals.

Additionally, the Cheerleader Effect may also occur due to the social context in which people are viewed. When people are viewed in a group, the positive attributes of one person can be attributed to the entire group. This means that a person who is considered attractive can make the other members of the group appear more attractive by association.

How Can the Cheerleader Effect be Used in Growth Hacking?

Understanding the Cheerleader Effect can help growth hackers optimize their marketing strategies and create more appealing campaigns. Here are a few ways that growth hackers can utilize the Cheerleader Effect:

1. Use Group Photos in Marketing Materials: Including group photos in marketing materials can create a positive association between the group and the product or service being promoted. This can help increase the perceived attractiveness of the product or service.
2. Highlight Positive Attributes of the Group: Highlighting the positive attributes of the group can help create a positive association between the group and the product or service being promoted. This can help increase the perceived attractiveness of the product or service.
3. Utilize Social Proof: Utilizing social proof can help create a positive association between the group and the product or service being promoted. This can be achieved by including customer testimonials or reviews that highlight the positive attributes of the product or service.
4. Create Communities: Creating communities around products or services can help create a sense of belonging and association between the group and the product or service being promoted. This can help increase the perceived attractiveness of the product or service.

The Cheerleader Effect is a powerful cognitive bias that can be used to create more appealing marketing campaigns. By understanding the principles behind the Cheerleader Effect, growth hackers can optimize their marketing strategies and create more effective campaigns. Utilizing group photos, highlighting positive attributes of the group, utilizing social proof, and creating communities are just a few ways that growth hackers can utilize the Cheerleader Effect to their advantage.