Marketing Essay: provide a report about one of the human cognitive biases (except “anchoring effect” that was discussed in class) of your choice and discuss its implications for consumer behavior.
The purpose of this assignment is to familiarize you with human cognitive biases and their applications in consumer behavior and marketing.
You are expected to provide a report about one of the human cognitive biases (except “anchoring effect” that was discussed in class) of your choice and discuss its implications for consumer behavior. The report should look like a magazine article and be professionally written. Thus, prepare your report as if you want to publish it somewhere, say the Daily Titan. In addition to that, I require you to use appropriate referencing and citations (you may use APA style or any other style that you are familiar with).
There are many cognitive biases identified by researchers. The web is replete with information about them and their applications. You will also see lots of books and/or YouTube videos about them. Therefore, once you choose a cognitive bias for your project, finding resources about it shouldn’t be an issue. Most of them also have Wikipedia pages with references to other external websites and also the scientific research papers that have found evidence for the bias.
Wikipedia has a list of them, from which you can choose your topic:
Some of these topics don’t have much marketing implications. So make sure that you choose something that is also applicable to marketing.
If you are not sure whether the bias you selected has implications for consumer behavior, you can google more specific keywords. For example, the following link has a shorter list of cognitive biases specifically related to marketing. However, this list is not complete and many other biases have marketing imlications.
These are some of the things that I can mention to name a few.
Confirmation bias, loss aversion, present bias, in-group favoritism, compromise effect, affective (mis)forecasting (or Impact bias which is closely related to this), bandwagon effect, endowment effect.
The report should include the following items:
1. A description of a cognitive bias: What is it, why does it happen. This part heavily relies on search and referencing. You are not expected to write something from your own knowledge.
2. The implications of the cognitive bias for consumer behavior (the implications can be for marketers or consumers themselves; e.g. how it helps consumers to make better decisions, exert self-control, save more money, etc.). For this part, you can also rely on your own experience and thoughts in addition to your research on the web. If you think about it, you might remember occasions that you noticed a company used this bias to make you purchase something. Feel free to discuss your own experience or how this new knowledge may change your future behavior. However, if your own experience is not substantial, make sure that you discuss other implications in other contexts.
3. References: Please make sure that you list the references that you used. In-text citations are also required.
Your report will be graded based on your effort as perceived by the instructor, quality of your writing (clarity, grammar, transitions, etc.), and the extent to which the instructions are followed.
Using pictures, diagrams, tables, etc. is recommended.