Heuristics

Question 1

Representativeness heuristic

Answer 1

Categories or representatives we have in our own head about various things in life (e.g. A librarian is quiet and likes to read)

Question 2

Availability heuristic

Answer 2

When things come easily to mind, we think of them as more common - you make decisions based on your memory (info available in your head)

Question 3

Anchoring and adjustment heuristic

Answer 3

Making a decision based on how something compares to the original (the discounted price to original price)

Question 4

Differential Price Framing (DPF) -Framing heuristic

Answer 4

You name de difference in price of one product compared to the other instead of the price itself (A large popcorn for only €0,50 more)

Question 5

Inclusive Price Framing (IPF) - Framing Heuristic

Answer 5

You name the original price (A large popcorn for €5,00)

Question 6

Numerosity heuristic

Answer 6

Based on how a resource is divided, we perceive it as more or less (e.g. pizza divided in 6 seems like less than when it is divided in 8)

Question 7

Attraction effect (Contextiel effect)

Answer 7

Adding a decoy similar, but inferior to the target product - target product become more attractive, decoy becomes new reference point

Question 8

Compromise effect (Contextuel effects)

Answer 8

Adding an extra product which is an ‘extreme’ - target product becomes the middle option (the compromise) - people gravitate more towards the middle

Question 9

Affect heuristic

Answer 9

When emotions are used for decision making - feelings become source of information

Question 10

Additive option frame (Affect heuristic)

Answer 10

You can add extra accessories to your purchase

Question 11

Subtractive option frame (Affect heuristic)

Answer 11

You have to delete the extra accessories that are automatically added to your purchase - pain of loss + anticipated regret

Question 12

FOMO (Fear of Missing Out)

Answer 12

Triggered by social environment - leads to anticipated regret

Question 13

Endowment effect

Answer 13

People prefer objects that they already possess over objects that they don’t (e.g. free trial for Netflix or Duolingo)

Question 14

Status quo bias

Answer 14

Lack of desire to change anything about the current situation

Question 15

Reference Dependence (Prospect Theory)

Answer 15

Comparing the current state with a reference point

Question 16

Optimism bias

Answer 16

Forecasting optimistically and based on the best case scenario’s

Question 17

Sunk cost fallacy

Answer 17

Making an investment “worth it” even though you don’t enjoy it - due to loss aversion: feeling like our past investment will be lost if we don’t follow through