When We Have A Vested Self-Interest in A Situation or Outcome, Regardless of How Well-Calibrated We Think Our Moral Compass Is, We Unconsciously Disregard Evidence That Negatively Impacts Our Desired Outcome.
Our Anchoring Bias Creates an Expectation That Can Be Used to Make A High Price or Time Frame Seem Reasonable Even When It Is Not. Simply by Initially Thinking of Higher Numbers, All Future Numbers Will Be Skewed Up and By the Anchoring Effect.
Entrepreneurs Should Be Skeptical Of All The Information They Consume Online. They Should Bring Into Question Any Motives That The Author Of The Content Many Have In The Way They Present The Information.
Rather than employ a more traditional sales or market-led approach, some SaaS companies have seen serious traction for their offerings using a product-led strategy that uses a freemium version to attract new users.
A Cognitive bias is the psychological tendency of the brain to draw incorrect conclusions, even in familiar situations or when presented with clear information. When talking to small business clients I refer to a collection of three common cognitive bias as the Everest Effect.
Conventional business advice is that in order to have a successful business you need to write a business plan. However, did you know that the simple act of writing a business plan can often lead your business to fail?
A confirmation bias is the tendency to search for, interpret, favor, and recall information in a way that conforms to one’s preexisting beliefs or hypotheses while giving disproportionately less consideration to alternative possibilities. A confirmation bias is a type of cognitive bias and a systematic error of inductive reasoning. People display this bias when they […]
When it comes to marketing, small businesses should understand that psychology and sales are two parts of the same coin. From the world of psychology, one cognitive bias that a small business owner should embrace when it comes to marketing is known as “the halo effect.” Technically speaking, the halo effect is a cognitive bias […]
In the book “Predictably Irrational: The Hidden Forces that Shape our Decisions”, Dan Ariely talks about a cognitive bias known as the Endowment Effect. Simply stated, the endowment effect is the fact the people in general place a higher value on the things they have over identical things they do not have. Dan used the […]