Low Effort Decisions (Test 2) Flashcards
What is the Availability Heuristic?
Making decisions about probability based on what comes to mind easily
What is the Representative Heuristic?
If you think something is true, then it is true
Example: Before & Afters
What is Base Rate Neglect?
When irrelevant info is used to make a probability judgement
Example: Asking the waiter what they like on the menu instead of what’s the most popular item?
What is a Sunk Cost?
Costs that have already been incurred and cannot be recovered
What is the Halo Effect?
The tendency to assume that if something is good on one attribute, then it is good on all others
(Example: If someone is good at “X”, then they are good at “Y”) Even if the two aren’t related
What is Confirmation Bias?
The tendency to see what we expect to see. People interpret info that supports (or confirms) their prior expectations
(Example: Unhealthy = Tasty Intuition)
What is Self Positivity Bias?
When you think bad things happen to other people, but not to us
(Example: Why people smoke, drive drunk and speed)
What is Outgroup Homogenity?
When you feel people in the outgroup are more like each other than they actually are
(Example: Assuming everyone from USD is rich, spoiled and smarter)
What is the Egocentric Bias?
People are more like you than they actually are
What do people think of Shelf Space at a store? (Marketing Based Heuristics)
Seeing brands with more shelf space might make people think its more popular
What do people think when there is scarcity of a product? (Marketing Based Heuristics)
Might see the product as desirable
Example: Popeye’s chicken sandwich
What is the number of arguments heuristic? (Marketing Based Heuristics)
The longer the list of arguments, the greater the strength of the overall argument
What is the Price-Quality Heuristic? (Marketing Based Heuristics)
Higher Price = Higher Quality
What is the the Family Influence Effect?
The tendency to buy the same products our parents buy or do the same things they do
(Example: The way you cut bacon)
What is the Fundamental Attribution Error?
You overattribute others’ actions to their personality and underattribute to the situation
If you behave badly, you attribute it to the situation, not anything about you
Example: Thinking someone is bad at driving for cutting you off
What is the Performance Related Tactics?
Basing performance on quality of the product
What is Price-related tactics?
Basing price on quality of products
What is Brand Loyalty?
Buying the same brand repeatedly because of a strong preference
What is Status Quo Bias?
The Tendency to do nothing or maintain the situation, if that is an option (Not due to loyalty)
(Example: Ordering the same toppings on pizza)
What is Normative Influences?
When other individuals influence our choices
What is Direct Influence? (Normative Influences)
Others try to manipulate us
What is Vicarious Observation? (Normative Influences)
Watch what others do to guide our behavior
What is Indirect Influence? (Normative Influences)
When we are concerned about the opinions of others
What is the “How do I feel about it?” Heuristic?
When you use your emotions to influence your decision
What is Choice Overload?
When there are too many choices, so we become frustrated when choosing
What is the Gambler’s Fallacy?
When you make a prediction on a random thing based on what happened
“Let me do one more game to win it back
What is the Hot Hand Fallacy?
People on streaks think they can do it all the time
Example: Someone who makes 4 free throws thinks they can make every free throw
What is the Illusion of Control?
The tendency for human beings to believe they can control or at least influence outcomes which they clearly cannot control
(Example: Blowing on dice when gambling)
What is Willful Ignorance?
The tendency to avoid info that, while useful and important, could cause emotional unease (Even when info would be used to make an informed decision, if it were provided)
(Example: Climate Change data)
