Session 8: Perception 3 Flashcards
A. “Is the population of Chicago more or less than 5 million? What is the population of Chicago?”
B. “Is the population of Chicago more or less than 500 thousand? What is the population of Chicago?”
Perceptual Bias
Anchors
Familiar positions or initial, often irrelevant starting points for estimation
It affect people’s estimations because they do not adjust enough
Asch’s personality test -
Intelligent, industrious, impulsive, critical, stubborn, and envious
or
Envious, stubborn, critical, impulsive, industrious, intelligent
- A person who knows what he wants and goes after it. He is impatient at people who are less gifted, and ambitious with those who stand in his way.
- The individual is probably maladjusted because he is envious and impulsive
Reference prices
Anchors
Purchase Quantity Links of Campbell Soup
Regular Price 89 cents
Sale price 79 cents
No limit
limit 4 per person
Limit 12 per person
Avg: 3.5 vs 3.5 vs 7 per customer
Suggestive Quantity/Price Snickers
Snicker Bars - buy them for your freezer vs
Snicker Bars - Buy 18 for your freezer
Avg: 1.4 vs 2.6 per person
At which pizzeria do you think consumers may end up spending more on a pizza (and being happier)?
At a pizzeria where you remove any toppings you don’t like from the fully-loaded pizza
___ defaults yield ___ prices and ___ options
Higher, higher, more
Default options are also called?
Status Quo Bias
IRAs 401k Study
Default Options
Employee participation in 401k plans increase from 37% to 86% under automatic enrollment
A group of researchers tried to use incentives to increase individuals’ exercise each day. The study gave split the subjects into three groups; each group had a different type of incentive to get them to walk 7,000 steps each day. Which of the three incentives would be the most successful one in increasing individuals’ exercise?
Group C. People were given $42 in the beginning of the month and $1.40 was taken away if they did not walk enough.
_____ loom larger than ____
Losses loom larger than gains
We are more sensitive to losing something than to passing up the opportunity to gain the same thing
93% Lean vs 7% Fat
Framing effect
Although both of the percentages represent the same thing, frame has an important effect on consumers’ perception.
93% lean was seen as better quality, taste, and less greasy
Particularly, this sense of “ownership” kicks in only when we physically own the product or actually experience it (vs. occurs even before we own something).
T or F
True
Chimps & Peanut Butter
When chimps were presented with a choice, 60& of them preferred peanut butter to a juice bar.
However, when they were endowed with peanut butter, 80% of them chose to keep the peanut butter instead of exchanging it for juice.
