thinking: people are doing it wrong!

Thinking:People are doing it wrong!How cognitive biases and mental heuristics help to sell more.Priit Kallas, Dreamgrow

Estonia

Deeper understanding of human behavior

Where and when we get the message has an effect on the result. Office, home, car, mobile, desktop...

People don’t think!

Anchoring EffectFirst bit of information establishes a range of possibilities.

Everything that follows will be anchored by that opening information.

$20,000

website

18250

10,200 € or 12,100 €

Less-is-better effect

Availability heuristicWe overestimate the

importance of information that is available to us.

Running ads for winter tires when

there’s a news about car crashes

Endowment EffectYou are less likely

to give up something you own, than you

would bewilling to pay

to get it.

Using Endowment Effect• Scoring points• Provisionally awarded bonus• Need for consistency• Sunk cost fallacy• Loss aversion

We aspire to round number goals

IKEA effectDisproportionately high value on things that you partially assemble, such as IKEA furniture...

... regardless of the quality of the end result.

Just add water!Give people easy first steps to put in their own effort.

Loss aversion

Choice-supportive biasWhen you choose something, you tend to feel positive about it, even if the choice has flaws.

Post-purchase rationalizationPeople persuade themselves through rational argument that a purchase was a good value.

576ppi

Samsung Galaxy S5 LTE-A

Unit bias

We believe that there is an optimal unit size

Small site, no data?Important to understand what makes users tick.Talk with them, involve them in the process.

Teaching and using statistics did not develope an intuitive sense of the reliability of statistical results in small samples.Our judgments were biased...- Daniel Kahneman

Confirmation bias

We search, interpret, and recall information in a way that confirms our beliefs and hypotheses.

Observer-expectancy effectWhen a researcher expects a given result and therefore unconsciously manipulates an experiment or misinterprets data in order to find it

Hyperbolic discountingPeople want an immediate payoff rather than a larger gain later.

The Current Moment Bias

Some of us would rather experience pleasure now, while leaving the pain for later.

Bias blind spots

We see cognitive biases more in others than in ourselves.

A bat and ball cost $1.10.The bat costs $1 more than the

ball.How much does the ball cost?

10¢

5¢

Your name here

But you don’t need that...

Conversion Ninja

Picture superiority effectConcepts learned by viewing pictures are more easily and frequently recalled than those that are learned by viewing their written word form counterparts.

Conversion Ninja

Conversion Ninja

Cognitive biases and mental heuristics

• 92 Decision-making, belief, and behavioral biases• 26 Social biases• 51 Memory errors and biases

• https://en.wikipedia.org/wiki/List_of_cognitive_biases

• https://en.wikipedia.org/wiki/List_of_memory_biases