Cognitive bias refers to a systematic deviation from rational thinking that occurs due to certain thought patterns or preconceptions. It is a distortion of perception or interpretation of information that can lead to false conclusions.
In marketing, cognitive bias can lead to customers making decisions that are not based on rational considerations, but on distortions in the perception and interpretation of information. An example of this is the phenomenon of the "anchor effect", where customers tend to make their decisions based on the first offer or price they see, even if this price is unreasonably high or low.
Cognitive biases can also have an impact on the way customers perceive and process marketing messages. Another example of this is 'confirmation bias', where people tend to seek and interpret information that confirms their existing beliefs and opinions, rather than seeking more objective information.
To minimise cognitive biases in marketing, it is important to be aware of how they occur and the impact they can have on customer decisions. Companies can adapt their marketing strategies to influence customer decisions in a more rational way, for example by using clear and easy-to-understand information and by providing comparative values and references. By using tests and experiments, companies can also find out how customers react to different marketing messages and what factors influence their decisions.