3. Decoy Effect

3. Decoy Effect

The decoy effect occurs when a person’s choice between 2 items changes when a third option, asymmetrically dominated, is introduced.

This third option is made easy to discard.

The decoy option is added to nudge the customers towards the intended target option, which is usually more than they really need. These subtle “nudges” are not meant to be manipulative and restrictive.

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Psychological principles for every product designer

uxdesign.cc

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2. Survivorship Bias

After reading Gates’ and Musk’s life stories, people seem to fall for the successful dropout myth , because if they can do it, why can’t you?

These stories might expose a fallacy in judgement because in reality, for one success story there are tens of thousands of stories of failure that may not be focused on because of a survivorship bias.

Focusing on only success stories results in “Survivorship Bias”.

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5. Recognition over Recall

Have you felt that whenever you’re trying to remember someone you met in the past, you find it difficult to recall them from memory but recognise them easily through looking at their pictures?

These scenarios exemplify Recognition over Recall. It’s easier for people to recognize something previously experienced than recall it from memory. Recalling from memory leads to an increase in cognitive load.

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1. Anchoring Bias

Let’s say you go to buy a watch, and the first one you like costs $150, which exceeds your budget, soon after you see a watch that costs $125, this new price seems reasonable now, even though this too might exceed your budget, however, as compared to the first one, it now feels like a better deal.

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4. Curse of Knowledge

The curse of knowledge is a cognitive bias, which occurs when people fail to consider that others don’t have the same background knowledge or information as they do.

Someone knowledgeable in a particular field might find it difficult to put themselves into a beginner’s shoes (or someone who is not familiar with what they’re talking about) when trying to explain a concept at a basic level.

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RELATED IDEAS

Product Managers (PM) are responsible for the growth of the product from the start. If the product fails, the PM takes full responsibility. To ensure a successful outcome, PMs need to spend a lot of time with their product to make it valuable for its users.

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As a Product Manager, You Need to Unlearn Your Product Every Day

hackernoon.com

Survivorship Bias

Survivorship bias is a logical error that twists our understanding of the world and leads to a wrong understanding of cause and effect.

We fall into survivorship bias when we assume that success stories tell the entire story of a product/business, while we don't properly consider past failures.

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Survivorship Bias: The Tale of Forgotten Failures

fs.blog

That Song On The Radio: Choice Vs Chance

When we hear an old and forgotten song on the radio (or at the coffee shop), we experience a warm and pleasant surprise. We didn’t expect to hear that favourite song of ours and here it is, already playing and making our day better.

Once we download that same song on Apple Music or Spotify, it is lying there on our playlist, and we can play it anytime. But playing it by choice does not provide the same thrill we got when listening to it by chance. This phenomenon of being happy by a lucky surprise is called serendipity.

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This simple psychological trick helps customers love your product

fastcompany.com