What are some examples of consumer bias?

What are some examples of consumer bias?

Consumer bias refers to the various cognitive biases that affect how consumers make purchasing decisions. Some examples include confirmation bias, where consumers favor information that confirms their pre-existing beliefs, and anchoring bias, where they rely too heavily on the first piece of information they encounter.

Can you give me a specific example of confirmation bias?

Sure! A specific example of confirmation bias is when a consumer believes that a particular brand is superior. They might only seek out reviews that praise that brand while ignoring negative feedback, reinforcing their belief.

What about anchoring bias? How does that work?

Anchoring bias occurs when consumers rely too much on the first piece of information they see. For instance, if a product is initially priced at $100 and then marked down to $70, consumers may perceive the $70 price as a great deal, even if the product's true value is much lower.

Are there other types of consumer biases I should know about?

Yes, there are several other types, including availability bias, where consumers make decisions based on immediate examples that come to mind, and bandwagon effect, where people tend to adopt behaviors or beliefs because others are doing so.