Cognitive biases are not just the stuff that researchers and psychologists discuss and analyse. They play critical roles in how we make decisions as small business owners and operators, but they also affect our decisions made as purchasers of services and products from other vendors.
That makes it very important to take the time to learn about the 30 or so identified biases so you can become more aware of them from both sides of your business – buyer and seller.
This section includes hand picked articles on the various biases available online that we feel are helpful in understanding the various individual biases.
Cognitive bias cheat sheet – Better Humans
Superb article that explains where biases come from, their functions in our lives, and the positives that come with them (not just the negatives. Provides more background to understand ourselves and how we process information when the brain has limited processing capability.
Nearly 200 cognitive biases rule our everyday thinking - Big Think
Interesting article that suggests there are not 20-30 cognitive biases but something like 200 biases. The article references discussions about why we have these biases (save brain time and energy), and suggests all can be boiled down to four significant ones. This giant cognitive bias codex will transform your understanding of yourself.
3 Examples of The Anchoring Bias in Marketing - Disenthrall
Three great examples of techniques (sales and marketing) that capitalize on the anchoring bias. You probably use these techniques without knowing how they work, so here’s the explanations.
25 Cognitive Biases and How to Apply Them to Your Business | GetVoIP
Nifty post primarily in infographic form that looks at each of 25 cognitive biases and provides a single sentence for each on how businesses can capitalize on them.
The Anchoring Bias Tempts You To Spend - Business Insider
This post explains how marketers and business owners capitalize on the anchor bias to encourage customers to spend more. Learn about how you can use the technique in your business, both as a buyer, and a seller.
58 cognitive biases that screw up everything we do - Business Insider
18 biases not enough for you? 24 is too few? Here’s fifty eight cognitive biases and some good text explanations of how one can avoid falling victim to them in decision-making.
16 Cognitive Bias Traps Small Business Owners Fall Into And How to Avoid Them
Primarily a graphic of various additional cognitive biases presented within the context of small business. There’s a few on this list that are not on other lists.
The Effects of Anchoring Bias on Human Behavior
Research based article on how the anchoring bias is involved in consumer buying habits and decisions. Many references included.
7 Ways Anchoring Bias Can Boost Your Conversions | Venture Harbour
The anchoring bias can mess up negotiations, and be a negative thing, OR you can use this human bias to boost sales by taking advantage of the bias to price, or put on sale, your products and services. Interesting take on how most companies use the anchoring bias to boost sales.
Availability Heuristic Definition and Examples
A great explanation of the “availability heuristic” bias, including some easy to understand examples of this little known or discussed cogntive bias.