We oversimplify our choices into doing A or B
In a rush to manage chaos, we view decisions as a binary choice. However, reducing complex concepts and problems to being on one side or another overlooks the richer opportunities in the middle.
Fisher, M., Newman, G. E., & Dhar, R. (2018). Seeing stars: How the binary bias distorts the interpretation of customer ratings. Journal of Consumer Research, 45(3), 471-489.
The study
Fisher, M., Newman, G. E., & Dhar, R. (2018). Seeing stars: How the binary bias distorts the interpretation of customer ratings. Journal of Consumer Research, 45(3), 471-489.
Key Takeaways
In further detail
We oversimplify our choices into doing A or B
In a rush to manage chaos, we view decisions as a binary choice. However, reducing complex concepts and problems to being on one side or another overlooks the richer opportunities in the middle.
Fisher, M., Newman, G. E., & Dhar, R. (2018). Seeing stars: How the binary bias distorts the interpretation of customer ratings. Journal of Consumer Research, 45(3), 471-489.
The study
Fisher, M., Newman, G. E., & Dhar, R. (2018). Seeing stars: How the binary bias distorts the interpretation of customer ratings. Journal of Consumer Research, 45(3), 471-489.
Key Takeaways
In further detail
We oversimplify our choices into doing A or B
The study
In detail
Scarcity
We value things more when they’re in limited supply
Social Proof
We copy the behaviors of others, especially in unfamiliar situations
Prospect Theory
A loss hurts more than an equal gain feels good
Reciprocity
We’re hardwired to return kindness received
Framing
We make very different decisions based on how a fact is presented
Loss Aversion
We feel more negative when losing something than positive when we gain it
Self-Expression
We constantly seek out ways to communicate our identity to others
Default Effect
We tend to accept the option pre-chosen for us
Priming
Our decisions are shaped by memories recalled from things just seen or heard
Anchoring
What we see first affects our judgement of everything thereafter
Autonomy Bias
We have a deep-seated need to control our situations
Fast & Slow Thinking
We make knee-jerk spontaneous decisions that can cause regretful damage
Status Quo Bias
We tend to stick with our previous choices, even if the alternatives might be better
Dynamic Norms
We’re more likely to change if we can see a new behavior developing
Round Pricing Preference
We prefer and trust whole numbers over those ending in a 9
Salience
Our choices are determined by the information we're shown