In a world brimming with information and choices, our brains have developed shortcuts to make decision-making more efficient. However, these mental shortcuts, known as cognitive biases, often lead us astray, subtly influencing our perceptions, decisions, and actions. In this comprehensive exploration, we'll dive into the fascinating realm of cognitive biases, uncovering their origins, impacts, and the ways they stealthily shape our lives and the business world.

Imagine walking through a forest with a blindfold. Every step is cautious, guided by sounds, smells, and the uneven ground beneath your feet. In many ways, our mental processes resemble this journey – we navigate the complex landscape of life guided by cognitive biases, the blindfolds of the mind. These biases are systematic patterns of deviation from norm or rationality in judgement, where our perceptions and decisions are influenced by seemingly irrelevant factors.

Cognitive biases are very common and affect almost everyone, regardless of age, gender, education, or intelligence. They are not always negative, but they can distort our reality and lead us to poor choices or outcomes. Therefore, it is important to understand what cognitive bias is, how it works, and how it affects us.

By the end of this blog, you will have a better understanding of cognitive bias and its implications for our thinking, communication, and performance. You will also learn some tips and strategies to improve your cognitive skills and to use cognitive bias to your benefit or for the greater good.

Origin and Why?

The term 'cognitive bias' was first coined by the pioneering work of two psychologists, Daniel Kahneman and Amos Tversky, in the 1970s. Their groundbreaking research shed light on the myriad ways our minds, contrary to the prevailing belief of human rationality, often take predictable shortcuts that lead to perceptual and judgmental errors.

But why do these biases exist? A study published in the 2022 Journal of Evolutionary Psychology suggests an intriguing answer: nearly 75% of our cognitive biases are linked to evolutionary survival strategies​​. Just as our ancestors relied on quick, instinctive decisions for survival, our brains today are wired to make rapid judgments, often bypassing logical analysis.

How are cognitive biases used to affect us?

One of the fields that uses cognitive bias extensively is marketing. Marketing is the process of creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large. It aims to influence our buying behaviour, which is the process of decision making and action that consumers take when they purchase products or services.

Marketing uses cognitive bias to understand our psychology and appeal to our needs, desires, or fears. Cognitive bias can help marketers attract our attention and interest, build our trust and loyalty, increase our perceived value and satisfaction, and encourage our action and commitment. Marketing can also use cognitive bias to manipulate or exploit our perception, cognition, or emotion, and to make us buy things that we do not need, want, or like.

The use of cognitive bias in marketing is not a new phenomenon. It can be traced back to the early days of advertising, which is a form of marketing communication that uses various media to persuade or inform an audience about a product, service, or idea. Advertising uses cognitive bias to create catchy headlines, slogans, or images, or to create curiosity or controversy.

Listerine

One of the earliest and most famous examples of using cognitive bias [ framing effect ] in advertising is the Listerine campaign in the 1920s. Listerine is a brand of antiseptic mouthwash that was originally developed as a surgical antiseptic in 1879. In the 1920s, Listerine faced a problem: how to sell a product that had no obvious use or benefit for most people. The solution was to create a new problem: halitosis, or bad breath!

Listerine used a series of ads that exploited the fear of social rejection and the desire for social acceptance, by suggesting that halitosis was a common and serious condition that could ruin one’s personal and professional life, and that Listerine was the only effective cure. The ads used phrases such as “Often a bridesmaid, never a bride”, “Can I be happy with him in spite of that?”, or “Don’t let them call you ‘old man’ behind your back” to create anxiety and insecurity among the consumers. The result was a huge success: Listerine sales increased from $115,000 in 1921 to more than $8 million in 1927.

Marlboro

Another example of using cognitive bias [ bandwagon effect ] in advertising is the Marlboro Man campaign in the 1950s. Marlboro is a brand of cigarettes that was introduced in 1924. In the 1950s, Marlboro faced a challenge: how to sell a product that was perceived as feminine or weak, due to its filtered tip and mild taste. The solution was to create a new image: the Marlboro Man, a rugged and masculine cowboy who smoked Marlboro cigarettes. The Marlboro Man used a series of ads that exploited the appeal of authority and the bandwagon effect, by suggesting that Marlboro cigarettes were the choice of real men, and that smoking Marlboro cigarettes would make one more attractive, successful, and adventurous. The ads used phrases such as “Come to where the flavour is. Come to Marlboro country”, “You get a lot to like with a Marlboro”, or “Marlboro. The filter cigarette with the unfiltered taste” to create a positive and distinctive association between the brand and the lifestyle. The result was a huge success: Marlboro sales increased from less than 1% of the market in 1954 to more than 40% of the market in 1972.

These are just two examples of how cognitive bias has been used and when it was first used by any company. There are many more examples of how companies use cognitive bias to influence our buying behaviour, such as advertising, pricing, branding, etc. Some of the current examples are:

1. Amazon uses the scarcity bias and the urgency bias to make us buy more and faster, by showing us how many items are left in stock, how many people are viewing the product, or how much time is left for a deal or a delivery.

2. Netflix uses the choice overload bias and the paradox of choice to make us watch more and longer, by showing us a large and diverse selection of movies and shows, but also recommending us what to watch based on our preferences and ratings.

3. Starbucks uses the decoy effect and the anchoring bias to make us spend more and happier, by offering us three sizes of drinks (tall, grande, and venti), but also adding a fourth size (trenta) that is much larger and more expensive, making the venti size seem more reasonable and attractive.

These are some of the ways that cognitive bias is used and when it was first used by any company. Cognitive bias can help companies create value and satisfy customers, but it can also manipulate and exploit customers. Therefore, it is important to be aware of cognitive bias and how it affects our buying behaviour.

What are cognitive biases and how do they shape our reality?

Cognitive biases are systematic errors or deviations in our thinking that affect how we perceive and interpret information, and how we make decisions and behave. They are not random or accidental. They are rooted in our psychology and influenced by various factors, such as our emotions, motivations, social influences, and limited cognitive capacities. They are also very common and affect almost everyone, regardless of age, gender, education, or intelligence.

Cognitive biases can shape our reality and influence our decisions and behaviour, for better or for worse. They can affect our learning, reasoning, problem-solving, communication, relationships, health, finances, politics, and more. They can also lead to conflicts, misunderstandings, prejudices, stereotypes, discrimination, and violence.

There are many types and categories of cognitive biases, but some of the most well-known ones are:

1. Confirmation bias: This is the tendency to seek, interpret, and remember information that confirms our existing beliefs or opinions, and to ignore or reject information that contradicts them. For example, if you believe that vaccines are harmful, you might only pay attention to news stories that support your view and disregard scientific evidence that shows otherwise.

2. Anchoring bias: This is the tendency to rely too much on the first piece of information we receive when making judgments or decisions, and to adjust our subsequent estimates or opinions based on that initial anchor. For example, if you see a product priced at $1000, you might think that it is expensive and not worth buying, even if it is discounted to $500 later. The original price has anchored your perception of the product’s value.

3. Bandwagon effect: This is the tendency to conform to the opinions or behaviours of the majority or the group we belong to, even if they are not rational or optimal. For example, if most of your friends or colleagues support a certain political party or candidate, you might feel pressured to do the same, even if you disagree with their policies or values.

4. Availability heuristic: This is the tendency to judge the likelihood or frequency of an event based on how easily we can recall examples or instances of it from our memory, rather than on objective data or statistics. For example, if you have recently heard about a plane crash or a shark attack, you might overestimate the risk of flying or swimming in the ocean, even if these events are very rare.

5. Framing effect: This is the tendency to be influenced by the way information is presented or worded, rather than by the actual content or meaning of it. For example, if you are offered a surgery that has a 90% success rate, you might be more likely to accept it than if you are told that it has a 10% failure rate, even though these are mathematically equivalent.

6. Hindsight bias: This is the tendency to believe, after an event has occurred, that we knew or predicted it beforehand, or that it was inevitable or obvious. For example, if you watch a sports game and see your team lose, you might think that you knew they would lose all along, or that there were clear signs of their poor performance, even if you did not notice them before the game.

These are some of the cognitive biases that shape our reality and influence our decisions and behaviour. Cognitive biases can help us simplify and process information, but they can also distort and mislead us. Therefore, it is important to understand what cognitive biases are and how they affect us.

How cognitive biases impact our decision making and behaviour.

Cognitive biases can have significant impacts on our decision making and behaviour, as well as on our personal and professional lives, our society and the world. Cognitive biases can affect our learning, reasoning, problem-solving, communication, relationships, health, finances, politics, and more. They can also lead to conflicts, misunderstandings, prejudices, stereotypes, discrimination, and violence.

Some of the examples of how cognitive biases affect our decision making and behaviour are:

1. Learning: Cognitive biases can affect how we acquire, process, and retain information, and how we apply it to new situations. For example, confirmation bias can make us ignore or reject new information that contradicts our existing beliefs or opinions, and the availability heuristic can make us rely on our memory rather than on objective data or statistics. These biases can prevent us from learning new things, updating our knowledge, or correcting our mistakes.

2. Reasoning: Cognitive biases can affect how we think logically, analytically, and critically, and how we evaluate evidence, arguments, or claims. For example, the anchoring bias can make us rely too much on the first piece of information we receive when making judgments or decisions, and the framing effect can make us influenced by the way information is presented or worded, rather than by the actual content or meaning of it. These biases can impair our reasoning skills, and lead us to faulty or irrational conclusions.

3. Problem-solving: Cognitive biases can affect how we identify, define, and solve problems, and how we generate, select, and implement solutions. For example, the hindsight bias can make us believe, after an event has occurred, that we knew or predicted it beforehand, or that it was inevitable or obvious, and the bandwagon effect can make us conform to the opinions or behaviours of the majority or the group we belong to, even if they are not rational or optimal. These biases can hinder our problem-solving abilities, and make us overconfident, complacent, or conformist.

4. Communication: Cognitive biases can affect how we communicate with others, and how we understand and interpret their messages. For example, confirmation bias can make us seek, interpret, and remember information that confirms our existing beliefs or opinions, and the availability heuristic can make us judge the likelihood or frequency of an event based on how easily we can recall examples or instances of it from our memory. These biases can impair our communication skills, and make us biassed, selective, or inaccurate.

5. Relationships: Cognitive biases can affect how we interact with others, and how we form and maintain social bonds, trust, and cooperation. For example, confirmation bias can make us seek, interpret, and remember information that confirms our existing beliefs or opinions, and the bandwagon effect can make us conform to the opinions or behaviours of the majority or the group we belong to, even if they are not rational or optimal. These biases can affect our relationships, and make us prejudiced, stereotyped, or discriminatory.

6. Health: Cognitive biases can affect how we perceive and manage our physical and mental health, and how we seek and use medical advice or treatment. For example, confirmation bias can make us ignore or reject new information that contradicts our existing beliefs or opinions, and the availability heuristic can make us judge the likelihood or frequency of an event based on how easily we can recall examples or instances of it from our memory. These biases can affect our health, and make us unhealthy, risky, or irresponsible.

7. Finances: Cognitive biases can affect how we manage our money, and how we make financial decisions or investments. For example, the anchoring bias can make us rely too much on the first piece of information we receive when making judgments or decisions, and the framing effect can make us influenced by the way information is presented or worded, rather than by the actual content or meaning of it. These biases can affect our finances, and make us wasteful, irrational, or greedy.

8. Politics: Cognitive biases can affect how we participate in political processes, and how we support or oppose political parties, candidates, or policies. For example, confirmation bias can make us seek, interpret, and remember information that confirms our existing beliefs or opinions, and the bandwagon effect can make us conform to the opinions or behaviours of the majority or the group we belong to, even if they are not rational or optimal. These biases can affect our politics, and make us polarised, dogmatic, or intolerant.

These are some of the examples of how cognitive biases impact our decision making and behaviour. Cognitive biases can have positive or negative effects, depending on the context and the situation. However, they can also lead to serious consequences, such as conflicts, misunderstandings, prejudices, stereotypes, discrimination, and violence. Therefore, it is important to be aware of cognitive biases and how they affect us.

How can we detect and overcome cognitive biases?

Cognitive biases are not always easy to detect and overcome, as they are often unconscious, automatic, and habitual. However, there are some ways to be aware of our own cognitive biases and to try to overcome them when they interfere with our goals or well-being. Some of the tips and strategies to detect and overcome cognitive biases are:

1. Think from first principles. Think critically and analytically, and use logic, data, and statistics to support our judgments or decisions. This can help us improve our reasoning and problem-solving skills, and avoid the influence of emotions, motivations, or social influences. For example, we can use tools or methods that help us think logically, analytically, or critically, such as the scientific method, the Socratic method, or the six thinking hats, or we can use tools or platforms that offer us data or statistics, such as graphs, charts, or calculators.

2. Seek feedback and different perspectives from others, especially those who disagree with us or have different backgrounds or experiences. This can help us challenge our own assumptions and beliefs, and expose us to alternative or contradictory information or viewpoints. For example, we can ask for feedback from our friends, family, colleagues, or experts, or we can read or watch different sources of media or information, or we can join or participate in diverse or inclusive groups or communities.

3. Challenge our own assumptions and beliefs, and look for evidence or arguments that contradict them. This can help us test the validity and reliability of our own information, and correct or update our own knowledge or opinions. For example, we can ask ourselves questions such as: Why do I believe this? What is the source of this information? How reliable is this information? What are the counterarguments or counterexamples? What are the potential biases or errors in this information?

4. Expose ourselves to diverse and reliable sources of information, and avoid echo chambers or filter bubbles that reinforce our biases. This can help us broaden our horizons and learn new things, and reduce the influence of selective or inaccurate information. For example, we can read or watch different sources of media or information, or we can use tools or platforms that offer us diverse or balanced content, or we can verify or fact-check the information we receive or share.

5. Be mindful and reflective, and acknowledge our emotions, motivations, and limitations. This can help us improve our self-awareness and self-regulation, and cope with stress, uncertainty, or complexity. For example, we can use tools or practices that help us be mindful and reflective, such as meditation, journaling, or feedback, or we can use tools or platforms that help us acknowledge our emotions, motivations, or limitations, such as mood trackers, goal setters, or self-assessments.

These are some of the tips and strategies to detect and overcome cognitive biases. Cognitive biases are not always bad or harmful, but they can also impair our thinking, communication, and performance. Therefore, it is important to be aware of cognitive biases and how to overcome them.

How can we use cognitive biases to our advantage?

Cognitive biases are not always bad or harmful. Sometimes, they can also be useful or beneficial, depending on the context and the situation. Cognitive biases can help us make quick and efficient decisions, boost our confidence, motivation, and happiness, enhance our creativity, innovation, and imagination, and strengthen our social bonds, trust, and cooperation. Moreover, cognitive biases can also be used to our advantage, if we know how to leverage them or influence others with them. For example, we can use cognitive biases to:

1. Persuade or convince others to agree with us, buy from us, or support us, by framing our messages or offers in a way that appeals to their emotions, values, or preferences. For example, we can use tools or techniques that help us persuade or convince others, such as the AIDA model, the Cialdini’s principles of persuasion, or the Monroe’s motivated sequence, or we can use tools or platforms that help us frame our messages or offers, such as headlines, slogans, or images.

2. Negotiate or bargain with others to get a better deal or outcome, by anchoring our expectations or demands, or by using social proof or scarcity cues. For example, we can use tools or techniques that help us negotiate or bargain with others, such as the BATNA, the ZOPA, or the win-win strategy, or we can use tools or platforms that help us anchor our expectations or demands, or use social proof or scarcity cues, such as prices, ratings, or timers.

3. Educate or entertain others to make them learn or enjoy something, by using stories, examples, or analogies that make the information more memorable, relatable, or engaging. For example, we can use tools or techniques that help us educate or entertain others, such as the storytelling, the gamification, or the humour, or we can use tools or platforms that help us use stories, examples, or analogies, such as books, games, or videos.

These are some of the ways that we can use cognitive biases to our advantage. Cognitive biases can help us improve our thinking, communication, and performance, and also use them to our benefit or for the greater good.=

How are cognitive biases used in wars?

Another field that uses cognitive bias is warfare. Warfare is the use of force or violence between groups or states to achieve political, economic, or ideological goals. Warfare can involve physical, psychological, or cyber attacks, or a combination of them. Warfare can also use cognitive bias to alter enemy cognitive processes, exploit mental biases or reflexive thinking, and provoke thought distortions, influence decision-making and hinder actions, with negative effects, both at the individual and collective levels.

Cognitive warfare is a form of warfare that uses cyber tools to manipulate or exploit the enemy’s perception, cognition, or emotion, and to make them act or react in ways that are favourable to the attacker. Cognitive warfare can target the enemy’s communication, intelligence, or command systems, or their morale, cohesion, or will to fight. Cognitive warfare can also use cognitive bias to disrupt, deceive, demoralise, or destabilise the enemy.

Some of the examples of how cognitive warfare uses cognitive bias are:

1. Disrupt or deceive the enemy’s communication, intelligence, or command systems, by hacking, jamming, or spoofing them, or by planting false or misleading information. For example, cognitive warfare can use the confirmation bias and the availability heuristic to make the enemy believe or act on information that confirms their existing beliefs or opinions, or that is easily recalled from their memory, rather than on objective data or statistics. This can make the enemy misinterpret or ignore the reality, and make wrong or irrational decisions or actions.

2. Demoralize or destabilize the enemy’s morale, cohesion, or will to fight, by spreading propaganda, rumors, or fake news, or by creating fear, confusion, or doubt. For example, cognitive warfare can use the bandwagon effect and the framing effect to make the enemy conform to the opinions or behaviors of the majority or the group they belong to, or to be influenced by the way information is presented or worded, rather than by the actual content or meaning of it. This can make the enemy lose confidence, motivation, or happiness, and make them less effective, cooperative, or loyal.

3. Manipulate or exploit the enemy’s perception, cognition, or emotion, by using psychological operations, cyberattacks, or biotechnology, or by creating illusions, biases, or stress. For example, cognitive warfare can use the anchoring bias and the hindsight bias to make the enemy rely too much on the first piece of information they receive when making judgments or decisions, or to believe, after an event has occurred, that they knew or predicted it beforehand, or that it was inevitable or obvious. This can make the enemy overconfident, complacent, or conformist, and make them vulnerable, predictable, or ineffective.

These are some of the examples of how cognitive warfare uses cognitive bias. Cognitive warfare can be a powerful and dangerous weapon, as it can affect the enemy’s mind and behaviour, and cause serious consequences, such as conflicts, misunderstandings, prejudices, stereotypes, discrimination, and violence. Therefore, it is important to be aware of cognitive warfare and how to defend against it.

Conclusion

In this blog, we have explored the following topics related to cognitive bias:

1. How cognitive bias is used and when it was first used by any company.

2. What are cognitive biases and how they shape our reality.

3. How cognitive biases impact our decision making and behaviour.

4. How we can detect and overcome cognitive biases.

5. How we can use cognitive biases to our advantage.

6. How cognitive bias is used in wars.

Now you have a much better understanding of cognitive bias and its implications on your thinking, communication, and performance. You have also learned some tips and strategies to improve your cognitive skills and to use cognitive bias to your benefit or for the greater good.

Cognitive bias is a fascinating and complex phenomenon that affects us all, whether we are aware of it or not. It can shape our reality and influence our decisions and behaviour, for better or for worse. Therefore, it is important to understand what cognitive bias is, how it works, and how it affects us.

Here are some recommendations or suggestions for further reading or action:

1. If you want to learn more about cognitive bias, you can read some books or articles, such as Thinking, Fast and Slow by Daniel Kahneman, Predictably Irrational by Dan Ariely, or The Art of Thinking Clearly by Rolf Dobelli.

2. If you want to test your own cognitive bias, you can take some quizzes or assessments, such as the Cognitive Bias Test, the Cognitive Reflection Test, or the Cognitive Bias Codex.

3. If you want to improve your cognitive skills, you can use some tools or platforms, such as Lumosity, Elevate, or Peak, that offer games or exercises that challenge your brain and train your memory, attention, problem-solving, and more.

4. If you want to use cognitive bias to your advantage, you can use some tools or platforms, such as Canva, Shopify, or Udemy, that help you create, communicate, deliver, and exchange offerings that have value for customers, clients, partners, and society at large, by using cognitive bias to influence their buying behaviour.