People often want to understand what is cognitive bias and how it can be used to benefit organizations. Today, we do be looking at understanding what cognitive bias is all about and how businesses or individuals can use it to earn more.
What is Cognitive Bias?
Cognitive bias is the consistent patterns of judgment that deviate from the norm or reason, leading one to make erroneous assumptions about other individuals and circumstances. These biases frequently result from the brain’s attempt to streamline the processing of information. Cognitive biases can result in irrationality, which is a general term for perceptual distortion, incorrect judgment, illogical interpretation, and erroneous interpretation.
Cognitive biases come in a wide variety, including but not restricted to:
- Confirmation bias
- framing bias
- retrospective bias
- Representativeness bias
Decision-making and problem-solving processes can be significantly impacted by cognitive biases. Also, it can cause individuals to reach conclusions that are illogical or depart from statistical norms. People can enhance their ability to make decisions and engage in critical thought by understanding and being aware of these biases.
In essence, cognitive biases enable people to navigate daily life more quickly. However, they can also lead to incorrect interpretations and conclusions.
How Might Businesses or Individual use Cognitive Biases to Their Advantage?
As a business or an individual, Mastering these biases will make you 10x more $$$ than a 4 year marketing degree:
Theory of User Delight:
The theory of user delight is a design philosophy that focuses on creating positive and enjoyable experiences for users of a product or service. The goal of user delight is to create a sense of joy and satisfaction in the user, which can lead to increased loyalty and positive word-of-mouth promotion.
People feel joy when they receive unexpected value.
- Employ amiable animations and high-quality photos (Surface Delight)
- Attend to all of your customers’ demands and assist them in reaching a flow state (Deep Delight)
A thorough comprehension of the target market’s needs and a focus on developing a seamless and intuitive user experience are necessary for incorporating user joy into the design process.
In a competitive market, user delight can help a product or service stand out by increasing client happiness and loyalty.
A cognitive bias known as framing bias describes how the way information is presented to people affects their decisions and judgments. It happens when people are given the identical information in various contexts or “frames,” and how the information is presented influences how they decide.
People perceive products based on how they’re presented.
- Frame for your target demographic.
- Similar products can be marketed in 1,000s of different ways.
Decision-making can be significantly impacted by framing bias, which can result in irrational decisions. People need to be conscious of this bias and make an effort to evaluate information without being influenced by how it is presented.
Priming is a phenomenon in psychology that refers to the way in which exposure to certain stimuli can influence a person’s thoughts, feelings, and behaviors. it can occur unconsciously and can have a significant impact on how people perceive and react to the world around them.
Small details unconsciously influence people.
- Utilize subtle imagery as a priming tool.
- The devil’s in the details – think of how details can guide someone to a sale.
The Barnum effect is often demonstrated in personality tests or astrological readings, in which people are given a general description that could apply to a wide range of individuals, but believe that the description is specifically tailored to them. For example, a personality test might describe someone as “outgoing and sociable,” and the person taking the test might believe that the description is an accurate portrayal of their personality, even though it could apply to many other people as well.
People tend to insert themselves in vague information.
- Ask your audience direct questions.
- Use “I” and “you” language.
The worth or perceived value that members within a social group assign to particular behaviors, acts, or assets is referred to as social currency. The degree to which anything is regarded as desirable, valuable, or important within a specific social environment is what it refers to.
Social currency can play a significant role in marketing and brand building in a professional setting.
Attempts may be made by businesses to produce goods or experiences that are viewed as desirable or exclusive, as doing so can help them gain more social capital and draw in new clients. Companies may also make an effort to increase their social currency by partnering with, sponsoring, or receiving endorsements from influential people or other powerful people.
People are more likely to share or buy things that make them look good.
- Understand the values of your audience.
- Make something that’s gratifying to share.
Status Quo Bias
People prefer what’s known to what’s unknown.
- Use logic and stats to convince people change is necessary.
- Appeal to emotion to help people make a change.
Mere Exposure Effect
People like and trust the things they see frequently.
- Repurpose your content to show up in the right places at the right time.
- In advertising, broad exposure is more impactful than narrow specifics.
People are more likely to say yes to a big request after saying yes to a small one. So,
- Offer free trials
- Give complimentary resources before pushing a paid product
- Alongside free content, have an option for paid membership
People are motivated to avoid losses rather than seek gains. So,
- Tell people what you’re saving them
- Frame your product/service as something they’d be missing out on
People value things they feel like they helped create. So,
- Find a way to get your audience involved with your content
- Give customers creativity and customization
The Peak-End Rule
People remember past events based on the high peaks and how it ends. So,
- Don’t leave people with a bad taste in their mouths
- Target high points during the process
People assume scarce items are more valuable. So,
- Provide limited-time, limited-quantity offers
- Use urgent language
People’s expectations are set by the first piece of information they get. So,
- Don’t skimp on landing pages or profile pages
- Choose headlines carefully
People tend to copy other people when they believe they could benefit. So,
- Provide testimonials
- Cultivate social media word-of-mouth
It a wrap, as a creator you should master these Biases if you want to increase your earning ability.
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