When faced with a difficult decision, copying the actions of others can feel reassuring. We are social animals, and following the crowd can lead us to believe that we are benefitting from the wisdom of others. This may be especially true if we emulate the behaviour of those we consider to be authority figures. This … Read More
Should you stick to what you know, or is it wiser to broaden your abilities? Some people may tell you to only take on projects that fall within your circle of competence, while others will advise you to get out of your comfort zone. Who’s right? The circle of competence model states that everyone has … Read More
Our beliefs can help us navigate the world around us. However, when our beliefs do not line up with reality, they can cause harm to ourselves and others. Also, these beliefs can become so deeply ingrained that they become very challenging to unlearn, even when presented with new information. This phenomenon is called belief perseverance. … Read More
Most people feel that, within the constraints they need to navigate, they are in control of their decisions. But we often automatically follow a train of thought or an external cue without noticing the selective factors in our attention. This phenomenon is called the attentional bias, and it affects many of the decisions we make. … Read More
Have you noticed that sometimes you can make decisions in an instant, but at other times the choice feels overwhelming? Anxiety can reduce your willingness to take risks, leading to a phenomenon known as decision anxiety. Decision anxiety causes a fear of making the wrong choice and later suffering the consequences. This may cause you … Read More
We constantly make decisions that will affect our lives in the future. That future can be one hour from now (what’s for lunch?) or one year from now (should I hire an assistant?). Unfortunately, the brain has a hard time imagining what our future selves will need. Instead, it takes mental shortcuts and makes choices … Read More
When something is described as ambiguous, it means that it is confusing, unclear, or open to different interpretations. Entrepreneurs face ambiguous situations all the time; it’s the nature of the business. For example, entrepreneurs make decisions about pricing, marketing, vendors, and finances that don’t have certain outcomes. In addition, entrepreneurs often have to make choices … Read More
Do you prefer your yoghurt with 10% fat or 90% fat-free? Should the label on your disinfectant say it kills 99% of germs, or that it only spares 1% of them? Marketers know which framing will result in more sales. This is called the framing effect: a cognitive bias where people decide on options based … Read More
Have you ever felt like you are too tired to make the right choice between several options, especially after a long series of decisions? Decision fatigue can lead to poor choices and irrational trade-offs in decision making. It refers to the deteriorating quality of decisions after a long session of decision making. Too many decisions … Read More
We often tend to prefer complex solutions over simple ones; complicated marketing jargon over clear explanations; multi-steps implementations over more direct execution. Complexity can lend an aura of authority to products, which marketers are exploiting to project authority and expertise. Complex processes can also delay decision-making, giving us the illusion of productivity. Why is it … Read More