Confirmation Bias & its applications in Marketing
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Transcript of Confirmation Bias & its applications in Marketing
Confirmation bias is a tendency people have to interpret evidence in ways that supports or preserves their existing beliefs, which sometimes leads to statistical errors.
Confirmation bias is a phenomenon wherein decision makers have been shown to actively seek out and assign more weight to evidence that confirms their hypothesis, and ignore or underweigh evidence that could disconfirm their hypothesis.
Confirmation bias is a filter through which you see a reality that matches your expectations. It causes you to think selectively, but the real trouble begins when confirmation bias distorts your active pursuit of facts.
Biased Selection of
Evidence
Biased Interpretation
of Evidence
1) FREELANCER.COM | MAILCHIMP.COMCustomer Loyalty and Retention
Action• Affirmation messages
Behaviour
• Confirmation bias of quality work done
Result• Loyal Customers
Colgate Kitchen Entrees
Ford Edsel – Product Failure
• Market Research
• New features and premium pricing
Confirmation Bias
Outcome- Product
failed
2) COLGATE|FORD EDSEL Brand Failure and Product Failure
• Launched scented soaps
• Huge success
1806
• Introduced -Colgate Kitchen Entrees
• Past success and growing frozen meal market
1982• Invested
more $16 million to promote it.
• Product failed
1985• 1957, economic recession•Bizarre pricing strategy
Monochromatic Screen with a Green backlight & the most popular ‘Snake’ game
Set people on the path of gadget-obsessed
geek
Finnish design aesthetics, reduced
size with every generation of mobiles
Nokia DNA- Distinct but consistent
‘Candy bar’ look
Possibility of Flip-phones (Moto Razr)
neglected
Heavily relied on Symbian OS, App store
only for tech-savvy people
Apple i-phone Revolution, 2007
Once over 50% Global Market share started
falling QoQ
Failed attempt to move towards
Windows OS, LUMIA phones
Once over a 50% of Market Share (Globally) was later sold out to
Microsoft for $ 7.5 Billion. Even the mightiest & strongest companies can
fall because of confirmation bias.
Presented &
Submitted By,
Group-06, Marketing, 2014-2016 Batch
14020841036 Divnay Bhutra S 14020841136 Kashyap Shah 14020841123 Anubhuti Gupta
Webliography
http://www.bouty.net/2015/07/marketing-failure-case-colgate-kitchen-entrees
/
https://en.wikipedia.org/wiki/Edsel
www.cnet.com/news/farewell-nokia-the-rise-and-fall-of-a-mobile-pioneer
/
http://www.smartinsights.com/persuasion-marketing/persuasion-marketing-principles/confirmation-bias-customer-loyalty
/
