The phenomenon known as “loss aversion” is believed to be as old as humankind itself. This type of cognitive distortion was studied in 1979 by the psychologists Kahneman and Tversky. In 2002, they were awarded the Nobel Prize in Economics for their work on the “prospect theory,” which the description and definition of loss aversion played an important role.
Human impartiality is an illusion when it comes to selecting samples or test subjects. The question is not whether selection bias has occurred in the data but rather whether one is aware of it, and if statistical bias has been accounted for to the best of one’s abilities. Examples of selection bias show just how far-reaching its consequences can be.
The standard format for Microsoft Word documents has been .docx since 2007. But what exactly does the file extension refer to and how does it differ from the previous .doc format? Learn about the special characteristics of this file type and which programs can save and store .docx files apart from Microsoft Word.
It is estimated that at least 85 percent of our purchasing decisions are made subconsciously. This decision-making process is thus susceptible to cognitive biases. In addition, there are statistical biases that are relevant to marketing. Our extensive list provides numerous examples of cognitive biases and reveals how they can potentially be used in business and marketing.
Drop-down lists in Google Sheets provide useful formatting options for many users. Adding a drop-down list to a cell allows users to choose between lots of different options, or assign values to certain attributes. This step-by-step guide explains how to create drop-down lists in Google Sheets.
The bandwagon effect plays an important role across many marketing practices. The phenomenon, which was first studied in 1944, is regularly exploited by advertising companies for marketing campaigns and other activities. This is beneficial in marketing because most people prefer to be on the side of the “winner” and accordingly, follow other people who are happy with their purchasing decision.
The decoy effect has proven itself in sales processes time and time again, which makes it an important marketing instrument. The classic decoy effect model introduces a "decoy" product that has asymmetrically dominating attributes to manipulate customers into choosing between two products. What is the effect and how exactly does decoy effect marketing work?
The endowment effect is an example of cognitive distortion that has a profound impact on people’s actions, especially economically. It describes how “ownership creates value.” This definition indicates that the endowment effect is particularly significant in marketing and sales.
When it comes to asking customers and site visitors for feedback, there’s a wide range of free online survey tools at your disposal. These can support you in creating surveys, sending them to your target market, and analyzing your results at the end. But which application is the best for your needs? And what tools should you look out for? See our list of 5 prominent online survey tools.
Humans have an innate drive to play - and this doesn’t disappear after childhood, but continues throughout life. Gamification makes use of this desire to play. By implementing playful elements, companies can improve motivation, achievements, and results in nearly every business area, from training employees to customer retention.