framing effect effect – in marketing and business

framing effect economics The framing effect in economics refers to the way in which people make decisions based on the information presented to them. This can be seen in marketing and business, where companies use different frames or perspectives to influence consumer behavior. For example, a product could be framed as a luxury item with […]

Mental accounting effect – in marketing and business

confirmation bias examples in real life Confirmation bias is a psychological phenomenon where people tend to believe information that confirms their existing beliefs and ideas. This bias can be seen in many aspects of life, including marketing and business. One common example is the mental accounting effect, where people tend to categorize their money into […]

status quo bias in marketing, business and economics

Status quo bias refers to the human tendency to stick to the familiar and known rather than change, even if that change would be beneficial. This can have a significant impact on marketing and business decisions as it means that people are often resistant to trying new products or services, even if they offer clear […]

mental accounting effect

The mental accounting effect refers to a cognitive bias where individuals categorize and treat money differently based on the source, purpose, or context of the funds. This bias can lead to irrational financial decision-making, including overspending on certain categories while neglecting others. In marketing and business, companies may leverage this effect by offering discounts or […]

The Impact of Loss Aversion Bias on Investment Choices and Financial Success

Loss aversion bias is a prominent psychological phenomenon that drives individuals to prefer avoiding losses over acquiring gains. It is a crucial concept in the field of behavioral finance, where it significantly influences how people make investment decisions. In essence, loss aversion bias is the tendency for people to be more afraid of losing what […]

prospect theory in marketing and business

Prospect theory is a well-known concept in marketing and business that explains how people make decisions. It was developed by Daniel Kahneman and Amos Tversky in 1979 and has since become one of the most influential theories in behavioral economics. The central idea behind prospect theory is that people are more sensitive to losses than […]

Best Behavioral Economics Books {2024 List}

best behavioral economics books by omer lewinsohn

As a humble digital marketer and online business broker, I’ve had the privilege of delving into the fascinating world of behavioral economics. This multidisciplinary field, merging psychology and economics, has profoundly shaped my understanding of decision-making in both the online business landscape and everyday life. In this curated list, I invite you to join me […]

Availability Heuristic in business and online marketing

The availability heuristic is a mental shortcut that people use to make judgments about the likelihood of an event based on the ease with which they can recall similar events or information. This heuristic can lead to biases in decision-making because people tend to overestimate the likelihood of events that are more readily available in […]

Anchoring Effect in Business and online marketing

The anchoring effect is a cognitive bias that occurs when an individual relies too heavily on the first piece of information offered (the “anchor”) when making decisions. This phenomenon has been widely studied by psychologists, economists and marketers, as it can have a substantial impact on how people make choices. In particular, the anchoring effect […]