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Cognitive Bias

Define​

The Inherent thinking errors that people make when processing information

Cognitive biases are flaws in judgement that shape how we perceive the world and how we behave. Some are so common you can use them to ensure your website achieves its goals.

For example:

  • The bandwagon effect is the tendency to do things because many other people do. It's why it's often recommended to state the number of customers you have or say how many people Liked your content.

  • Anchoring is the tendency to over-rely on the first piece of information we receive when making decisions. You can define the anchor to your advantage (e.g. by saying a product 'was ₹100, now ₹80' you make ₹80 appear good value).

  • Loss aversion is the tendency to overvalue loses and undervalue gains. This can be used to prompt user action with scarcity (e.g. 'only 2 left in stock') and time-limited offers.

  • The decoy effect gives people a third product option so that they'll choose the higher priced of two other options. The preferred option goes from being the expensive option to the one that's best value.

  • The endowment effect is the tendency for people to demand much more to give up an object than they would be willing to pay to acquire it. It's the reason why free trials are often so effective.

Resources​