Heuristics Flashcards
Ambiguity effect
Avoid unclear options and unclear outcomes. Make the message as clear and as simple as possible
Anchoring
-Predisposition for one option, normally the first option, to measure all other options.
Likeability effect
Predisposition for our perceptions to be effected by our recurring thoughts, after you buy a new car you sIdenee that version of a car more often
Recency/Availability bias
Predisposition to estimate the likelihood of an event as its recently happened and recently in our mind & readily available.
Confirmation bias
To search for, interpret or remember information that confirms our current beliefs. People gravitate to products that confirm their beliefs & opinions and therefore self identity.
Conformity effect
Match attitudes, beliefs and behaviors to the wider group because it feels safer. People like us do things like this.
Confirmation bias
to search for, interpret or remember information that confirms our current beliefs. People gravitate to products that confirm their beliefs & opinions and therefore self identity.
Decoy effect
Modify the preference between 2 options by introducing a 3rd option that leads towards one of the original 2. Buy 40 channels for $40 or buy 80 channels for $80. Most would go for the 40 for $40 option because its cheaper, if a 3rd was introduced, say 90 channels for $120 dollars, all of a sudden the middle option looks much more appealing and the lower option appears cheap and undesirable.
Egocentric bias
believe that positive results come from our own actions & are in control based on their choices people like to feel they are due all the credit, focus less on brand benefits and more on giving credit to the consumer & their actions.
Halo effect
let the positive or negative effect of one thing spill onto another, when a consumer likes one element of a brand they let it spill onto other elements. If your brand is talking about hyper positive things and show their brand next to it the halo effect associates the positives with the brand
Hyperbolic discounting or immediacy bias - value an immediate payoff as opposed to later one even if it’s of less value.
IKEA effect
they add more value to things they assemble themselves because they played a part in its creation. Betty Crocker for example. It makes 6/10 brownies 10/10 because I made them!
In group Bias - give other people preferential treatment to those perceived to be in the group, perceive that they can achieve the same results
Loss aversion
Credit card offer that suggests you are pre qualified for this offer, sign up now or lose it. - you already own it and you need to sign up or risk losing it.
Mental accounting
categorized options in mental buckets, find balance among buckets to make decisions easier. A dieter puts good and bad food into categories by using buckets. This is good food, this is bad food. If you have a basket full of healthy foods it makes it more rational to add bad food.
Peak end rule
evaluate an experience by its most positive or negative peak, or there feeling on the final part.
Vacations are often talked about based on their best or worst moments or how they left when the left the destination. The peak moments at the very end are the most important, if a movie has a weak ending its a bad movie.
Primacy effect
remember items at the end of a list vs the ones in the middle, options in the middle blend in. try to be the first or last the consumers see.
