Cognitive bias

Advanced 📣 Marketing / Advertising

Definition

Those mental shortcuts our brains take that advertisers ruthlessly exploit—confirmation bias, anchoring, sunk cost fallacy—basically why marketing works despite being ridiculous.

Example Usage

We're using anchoring bias in our pricing strategy; the crossed-out original price makes the discount feel 40% bigger than it actually is.

Origin

Psychology and behavioral economics, weaponized by marketing in the 2000s

Fun Fact

Companies lose billions to 'left-digit bias' where $9.99 feels significantly cheaper than $10.00, even though it's literally one penny

Source: Behavioral economics and neuromarketing

Related Terms

Translate This Term

See “Cognitive bias” in Corporate Speak, Gen-Z Slang, Pirate Speak, and more.

Try the Translator