Cognitive Biases

Question 1

Anchoring Bias

Answer 1

Biases on previous experience e.g. similar products price is different to actual product

Question 2

Social Norms

Answer 2

Collectively held beliefs about what kind of behaviour or price is appropriate in a given situation

Question 3

Availability Bias

Answer 3

When people make judgements about the likelihood of an event based on how easily an example, instance, or case comes to mind

Question 4

Framing

Answer 4

When our decisions are influenced by the way information is presented

Question 5

Loss aversions - Endowment effect

Answer 5

The emotional impact of a loss is felt more intensely than the joy of an equivalent gain

Question 6

Herd Behaviour

Answer 6

Individuals who act collectively as a group, often making decisions as a group that they wouldn’t make as individuals

Question 7

Choice Architecture

Answer 7

A scenario in which the environment in which someone must make a decision has been carefully designed to try and influence that decision