stereotyping

What Is Stereotyping? Stereotyping In A Nutshell

A stereotype is a fixed and over-generalized belief about a particular group or class of people. These beliefs are based on the false assumption that certain characteristics are common to every individual residing in that group. Many stereotypes have a long and sometimes controversial history and are a direct consequence of various political, social, or economic events. Stereotyping is the process of making assumptions about a person or group of people based on various attributes, including gender, race, religion, or physical traits.

AspectExplanation
StereotypingStereotyping is a cognitive process in which individuals categorize or generalize people or groups based on certain characteristics, attributes, or behaviors, often resulting in oversimplified and biased perceptions. It involves making assumptions about individuals based on group membership.
Nature of StereotypesCognitive Shortcuts: Stereotypes are mental shortcuts that help individuals quickly process and make sense of complex social information.
Generalizations: Stereotypes involve making broad generalizations about people, often based on limited or superficial information.
Bias: Stereotypes can lead to biased judgments and decisions, as they often oversimplify reality.
Formation of StereotypesSocialization: Stereotypes can develop through socialization, as individuals absorb beliefs and attitudes from their culture, family, media, and society.
Cognitive Processes: Stereotypes can form as a result of cognitive processes such as categorization and schema formation.
Confirmation Bias: People may selectively notice and remember information that confirms their stereotypes, reinforcing them.
Types of StereotypesGender Stereotypes: Assumptions and generalizations about the behaviors, roles, and characteristics associated with different genders.
Racial Stereotypes: Beliefs and preconceptions about individuals or groups based on their racial or ethnic backgrounds.
Age Stereotypes: Stereotypes related to different age groups, such as children, teenagers, adults, or the elderly.
Occupational Stereotypes: Assumptions about people’s abilities and traits based on their professions or jobs.
Positive and Negative StereotypesPositive Stereotypes: These are perceived as favorable generalizations about certain groups, but they can still lead to bias and unfair judgments. For example, assuming that all athletes are naturally talented can create pressure and unrealistic expectations.
Negative Stereotypes: These are harmful generalizations that perpetuate biases and discrimination. For example, believing that a certain racial group is less intelligent can lead to unequal opportunities.
Impacts of StereotypingDiscrimination: Stereotyping can lead to discrimination when individuals or groups are treated unfairly based on stereotypes.
Prejudice: Prejudice involves holding negative attitudes and emotions toward a group, often driven by stereotypes.
Inequality: Stereotyping can contribute to social inequalities and perpetuate systemic biases.
Reduced Individuality: Stereotypes overlook individual differences and unique qualities.
Combatting StereotypingAwareness: Recognizing and acknowledging one’s own stereotypes and biases is the first step in combatting them.
Education: Promoting diversity education and awareness can help challenge stereotypes.
Media Representation: Accurate and diverse portrayals of people in media can reduce harmful stereotypes.
Intergroup Contact: Encouraging positive interactions between different groups can break down stereotypes.
ConclusionStereotyping is a cognitive process that simplifies complex social information but can lead to biases, discrimination, and inequality. Recognizing, challenging, and combatting stereotypes is essential for promoting fairness, diversity, and inclusivity in society.

Understanding stereotyping

Stereotyping is a cognitive process existing in most social groups and varies according to the context or situation.

By associating certain characteristics with a particular group, stereotyping can involve, lead to, or serve to justify a physical or emotional reaction from the individual perpetuating the stereotype.

While stereotyping occurs cognitively, it’s important to note that the stereotypes themselves are learned.

They may be implicitly or explicitly taught or reinforced by friends, family members, teachers, peer groups, the media, or society as a whole.

Positive stereotyping

Negative stereotyping is obvious and often involves discrimination based on race, religion, and gender.

Positive stereotyping is less obvious because the individual doing the stereotyping may mean no harm to come to the affected group.

In some cases, however, positive stereotyping can be construed as negative stereotyping by the recipient.

Examples of positive stereotyping

To explain this concept in more detail, consider the following positive stereotype examples:

Asian people are good at mathematics and science

This stereotype emerged during the 1960s with the general belief that Asian people excelled in specific disciplines.

However, the stereotype has not been statistically proven and many experience intense pressure to perform as a result.

Unable to live up to expectations, some may engage in self-defeating thoughts or behaviors that reduce academic performance.

Black people are superior athletes

This stereotype emerged in the latter part of the nineteenth century.

While it is true that members of some races dominate certain sports, notions of athletic superiority have not been conclusively proven.

In truth, culture and society determine whether some individuals will play certain sports.

Many believe black people make the best long-distance runners.

But the majority of Olympic gold medal winners come from a small area of Kenya called Nandi.

The rest of Africa, which is predominantly black, is underrepresented in terms of high-performance runners.

Gay men are more fashionable

This is a stereotype likely to have been created or at least reinforced by the media.

Gay men are routinely depicted in fashion advertisements because they are considered effeminate and have a stronger fashion sense more closely resembling that of a woman.

In the same way that some straight men refrain from drinking beer and hunting, some gay men do not care about fashion.

Stereotyping in the workplace

Stereotyping in the workplace is also common, with most prejudices based on race, political bias, sex, gender, superiority level, work ethic, and income bracket.

Examples of negative stereotyping

Some of the negative consequences of stereotyping in the workplace include:

Low staff morale

Stereotyping creates a toxic work environment where individuals are subject to constant prejudice, criticism, or other negative actions.

This leads to a loss of productivity, absenteeism, and conflict.

Low staff retention

Organizations that turn a blind eye to stereotyping are likely to experience increased staff turnover as employees look for a more inclusive and supportive environment elsewhere.

Increased risk of litigation

In some societies and cultures, stereotyping can lead to litigation.

This is more likely in organisations with toxic or outdated company cultures where complaints are not investigated seriously.

How to avoid workplace stereotyping

To avoid workplace stereotyping, employees should keep the following tips in mind:

  • Consider the things you have in common with a colleague instead of defaulting to the differences.
  • Develop a sense of empathy and consider how stereotyping affects others.
  • Read widely to learn more about other groups, cultures, or the mechanisms behind the stereotype formation.
  • Resist the urge to make snap judgments about people. Never judge a book by its cover!
  • Make a concerted effort to get to know people you might not usually associate with.

Additional Examples

Stereotyping in Education

Educational institutions can sometimes be breeding grounds for stereotypes. These stereotypes can affect the way students are treated and their academic performance.

Examples of Stereotyping in Education:

  • Girls are not good at STEM subjects: This stereotype suggests that girls are inherently less capable in science, technology, engineering, and mathematics. This can discourage young girls from pursuing careers in these fields.
  • Boys aren’t good writers: Some may believe that boys lack the emotional depth or creativity to excel in writing or literature. This can lead to discouragement or a lack of support for boys who have a passion for writing.

Stereotyping in Relationships

Relationships, both romantic and platonic, are not immune to stereotyping.

Examples of Stereotyping in Relationships:

  • Men don’t express emotions: The stereotype that men are always stoic can lead to unhealthy emotional suppression.
  • Women are overly emotional: This stereotype can invalidate genuine concerns or feelings expressed by women, attributing them solely to emotion rather than logic or reason.

Stereotyping in Media

The media plays a significant role in perpetuating stereotypes, whether through movies, TV shows, advertisements, or news outlets.

Examples of Stereotyping in Media:

  • The Dumb Blonde: Often, blonde women are portrayed as lacking intelligence or being overly concerned with their looks.
  • The Tech-Geek: This stereotype portrays individuals who are proficient in technology, especially those in the IT field, as socially awkward or lacking interpersonal skills.

Stereotyping Based on Age

Ageism, or discrimination based on age, can lead to a variety of stereotypes about both the young and the elderly.

Examples of Age-based Stereotyping:

  • Elderly people are technologically challenged: This stereotype suggests that older individuals can’t understand or use modern technology.
  • Young people are lazy and entitled: Many believe that younger generations lack the work ethic of their predecessors.

Key takeaways

  • Stereotyping is the process of making assumptions about a person or group of people based on various attributes, including gender, race, religion, or physical traits.
  • Stereotyping is commonly separated into positive and negative stereotyping. However, positive stereotyping is still based on generalizations that can negatively affect the affected group.
  • Stereotyping in the workplace usually stems from prejudices related to age, gender, race, income level, or work ethic. Empathy and knowledge are two of the best tools employees can use to help them appreciate the differences in others.

Key Highlights of Stereotyping

  • Definition: Stereotyping is a cognitive process where individuals make assumptions about a person or group based on attributes such as gender, race, religion, or physical traits. It involves generalizing certain characteristics to an entire group, leading to fixed and over-generalized beliefs.
  • Positive Stereotyping: Positive stereotypes are less obvious and may not be intended to harm the affected group. However, they can still have negative consequences by creating pressure to conform to the stereotype.
  • Examples of Positive Stereotyping: Examples include beliefs that certain ethnic groups excel in specific disciplines or that individuals from certain backgrounds possess superior abilities in certain fields.
  • Stereotyping in the Workplace: Stereotyping is also prevalent in the workplace and can be based on race, gender, political bias, income bracket, and more. It leads to low staff morale, reduced staff retention, and increased risk of litigation.
  • Avoiding Workplace Stereotyping: To avoid workplace stereotyping, individuals should focus on commonalities with colleagues, develop empathy, learn about different cultures, avoid snap judgments, and make an effort to know people from diverse backgrounds.

Related ConceptsDescriptionWhen to Apply
StereotypingStereotyping is a cognitive process where individuals categorize others into simplified groups based on characteristics such as race, gender, ethnicity, or profession. Stereotypes often involve generalizations, assumptions, and biases about a particular group, which may not accurately reflect the diversity and complexity of individuals within that group. While stereotyping can serve as a mental shortcut for processing information, it can also lead to prejudice, discrimination, and unfair treatment towards individuals who are perceived to belong to a certain category.Interpersonal Interactions: Recognize and challenge stereotypes during interpersonal interactions to avoid making assumptions or judgments based on superficial characteristics. Foster open-mindedness, empathy, and respect towards individuals from diverse backgrounds, appreciating their unique experiences and perspectives.
PsychologyIn Psychology, stereotyping is studied as a cognitive phenomenon influenced by social, cultural, and psychological factors. Researchers examine how stereotypes form, are reinforced, and impact behavior, attitudes, and intergroup relations. Understanding the psychological mechanisms underlying stereotyping helps identify strategies for reducing prejudice, promoting inclusivity, and fostering positive intergroup interactions.Research and Education: Explore the psychological processes of stereotyping through research and education to gain insights into its dynamics and effects on individuals and society. Develop interventions and educational programs aimed at increasing awareness, empathy, and critical thinking skills to challenge stereotypes and promote a more inclusive and equitable society.
Diversity and InclusionIn the context of Diversity and Inclusion, addressing stereotyping is crucial for creating environments that embrace and celebrate diversity. Organizations and communities strive to mitigate the impact of stereotypes by promoting awareness, education, and policies that foster inclusivity and equity. By acknowledging and challenging stereotypes, they can create spaces where individuals feel valued, respected, and empowered to contribute their unique talents and perspectives.Diversity Training: Integrate discussions on stereotypes and bias into diversity training programs to raise awareness and cultivate inclusive attitudes and behaviors among employees, leaders, and stakeholders. Implement policies and practices that support diversity, equity, and inclusion, ensuring that organizational culture and processes reflect a commitment to challenging stereotypes and promoting respect for all individuals.
Media and RepresentationIn Media and Representation, stereotypes play a significant role in shaping perceptions and narratives about different groups in society. Media outlets, entertainment industries, and content creators have the power to challenge or perpetuate stereotypes through the portrayal of characters, storylines, and imagery. Promoting diverse and authentic representations in media can counteract harmful stereotypes, foster empathy, and promote social cohesion by highlighting the complexity and richness of human experiences across various identities and backgrounds.Media Literacy: Engage in media literacy initiatives to analyze and critique representations in media, identifying stereotypes and biases that reinforce harmful narratives or marginalize certain groups. Support and promote diverse voices and perspectives in media production and consumption, advocating for inclusive storytelling and representation that accurately reflects the diversity of human experiences.
Education and AwarenessIn Education and Awareness efforts, addressing stereotypes involves raising consciousness and challenging ingrained biases. Educational institutions, community organizations, and advocacy groups develop programs and initiatives to promote awareness, empathy, and critical thinking skills. By fostering dialogue, reflection, and self-awareness, they empower individuals to recognize and confront stereotypes, cultivating a culture of respect, empathy, and appreciation for diversity.Curriculum Development: Integrate discussions on stereotypes, bias, and prejudice into educational curricula at all levels to facilitate critical thinking and promote cultural competence among students. Offer diversity training, workshops, and awareness campaigns to educators, students, and community members, providing resources and strategies for recognizing, challenging, and addressing stereotypes in educational settings and broader society.
Legal and Policy FrameworksIn the realm of Legal and Policy Frameworks, addressing stereotypes involves implementing laws, regulations, and policies that protect individuals from discrimination and promote equal rights and opportunities. Governments, organizations, and legal advocates work to enact and enforce anti-discrimination laws, diversity initiatives, and affirmative action policies to combat systemic biases and create more equitable societies. By addressing stereotypes at the structural level, they strive to dismantle barriers and create environments where all individuals can thrive and succeed.Policy Advocacy: Advocate for the implementation and enforcement of anti-discrimination laws, policies, and initiatives that address stereotypes and promote diversity, equity, and inclusion in workplaces, educational institutions, and public spaces. Support legislative efforts to strengthen legal protections and advance social justice agendas, working collaboratively with stakeholders to build more inclusive and equitable societies for all individuals.
Cross-Cultural CommunicationIn Cross-Cultural Communication, understanding and challenging stereotypes are essential for fostering effective communication and collaboration across diverse cultural contexts. Individuals and organizations seek to develop intercultural competence by recognizing and respecting differences, challenging assumptions, and building connections based on mutual understanding and respect. By transcending stereotypes, they can navigate cultural differences more effectively and cultivate meaningful relationships built on trust and empathy.Cultural Competence Training: Engage in cross-cultural communication training and intercultural competency development to enhance understanding and appreciation of diverse cultural perspectives and practices. Cultivate empathy, curiosity, and humility in cross-cultural interactions, valuing differences and actively challenging stereotypes to foster mutual respect and collaboration across cultural boundaries.
Leadership and Role ModelingIn Leadership and Role Modeling, addressing stereotypes involves modeling inclusive behaviors and creating environments where diversity is valued and respected. Leaders play a critical role in challenging stereotypes, promoting diversity, and fostering inclusive cultures within organizations and communities. By championing diversity initiatives, leading by example, and holding others accountable for their actions, they inspire positive change and create pathways for individuals from all backgrounds to thrive and succeed.Inclusive Leadership: Lead by example by actively challenging stereotypes, fostering open dialogue, and promoting diversity and inclusion in leadership roles and organizational practices. Advocate for diversity initiatives, mentorship programs, and inclusive policies that empower individuals from underrepresented groups and create opportunities for their advancement and success.
Social PsychologyWithin Social Psychology, stereotyping is studied as a cognitive process influenced by social norms, intergroup dynamics, and individual differences. Researchers investigate the formation, persistence, and consequences of stereotypes on social perception, attitudes, and behavior. By understanding the underlying mechanisms of stereotyping, psychologists develop interventions and strategies to reduce prejudice, mitigate bias, and promote positive intergroup relations.Research and Intervention: Conduct empirical research to examine the origins and effects of stereotyping on social perception and behavior. Develop evidence-based interventions and interventions aimed at reducing prejudice, bias, and discrimination, fostering empathy, and promoting positive intergroup interactions in diverse social contexts and settings.
Employment PracticesIn Employment Practices, addressing stereotypes involves implementing fair and equitable hiring, promotion, and performance evaluation processes. Organizations strive to mitigate bias and promote diversity by adopting inclusive recruitment strategies, standardized evaluation criteria, and diversity training programs. By creating inclusive work environments that value diversity of thought and experience, they attract and retain top talent, drive innovation, and enhance organizational performance and resilience.Diversity Hiring: Implement diversity recruitment strategies and practices to attract and retain a diverse workforce. Establish objective criteria for hiring, promotion, and performance evaluation to mitigate bias and ensure equitable opportunities for all employees. Provide diversity training and resources to managers and employees to promote awareness, inclusion, and accountability in employment practices and organizational culture.
Community EngagementIn the context of Community Engagement, addressing stereotypes involves fostering dialogue, building bridges, and promoting social cohesion among diverse community members. Community organizations, grassroots initiatives, and civic leaders work to create spaces for meaningful interaction, mutual understanding, and collective action. By facilitating conversations, celebrating diversity, and challenging stereotypes, they create stronger, more resilient communities where all individuals can participate and thrive.Community Building: Facilitate community dialogues, cultural events, and collaborative projects that bring together individuals from diverse backgrounds. Foster empathy, understanding, and solidarity through shared experiences and collective efforts to challenge stereotypes, promote social inclusion, and build a more cohesive and resilient community for all members.

Connected Thinking Frameworks

Convergent vs. Divergent Thinking

convergent-vs-divergent-thinking
Convergent thinking occurs when the solution to a problem can be found by applying established rules and logical reasoning. Whereas divergent thinking is an unstructured problem-solving method where participants are encouraged to develop many innovative ideas or solutions to a given problem. Where convergent thinking might work for larger, mature organizations where divergent thinking is more suited for startups and innovative companies.

Critical Thinking

critical-thinking
Critical thinking involves analyzing observations, facts, evidence, and arguments to form a judgment about what someone reads, hears, says, or writes.

Biases

biases
The concept of cognitive biases was introduced and popularized by the work of Amos Tversky and Daniel Kahneman in 1972. Biases are seen as systematic errors and flaws that make humans deviate from the standards of rationality, thus making us inept at making good decisions under uncertainty.

Second-Order Thinking

second-order-thinking
Second-order thinking is a means of assessing the implications of our decisions by considering future consequences. Second-order thinking is a mental model that considers all future possibilities. It encourages individuals to think outside of the box so that they can prepare for every and eventuality. It also discourages the tendency for individuals to default to the most obvious choice.

Lateral Thinking

lateral-thinking
Lateral thinking is a business strategy that involves approaching a problem from a different direction. The strategy attempts to remove traditionally formulaic and routine approaches to problem-solving by advocating creative thinking, therefore finding unconventional ways to solve a known problem. This sort of non-linear approach to problem-solving, can at times, create a big impact.

Bounded Rationality

bounded-rationality
Bounded rationality is a concept attributed to Herbert Simon, an economist and political scientist interested in decision-making and how we make decisions in the real world. In fact, he believed that rather than optimizing (which was the mainstream view in the past decades) humans follow what he called satisficing.

Dunning-Kruger Effect

dunning-kruger-effect
The Dunning-Kruger effect describes a cognitive bias where people with low ability in a task overestimate their ability to perform that task well. Consumers or businesses that do not possess the requisite knowledge make bad decisions. What’s more, knowledge gaps prevent the person or business from seeing their mistakes.

Occam’s Razor

occams-razor
Occam’s Razor states that one should not increase (beyond reason) the number of entities required to explain anything. All things being equal, the simplest solution is often the best one. The principle is attributed to 14th-century English theologian William of Ockham.

Lindy Effect

lindy-effect
The Lindy Effect is a theory about the ageing of non-perishable things, like technology or ideas. Popularized by author Nicholas Nassim Taleb, the Lindy Effect states that non-perishable things like technology age – linearly – in reverse. Therefore, the older an idea or a technology, the same will be its life expectancy.

Antifragility

antifragility
Antifragility was first coined as a term by author, and options trader Nassim Nicholas Taleb. Antifragility is a characteristic of systems that thrive as a result of stressors, volatility, and randomness. Therefore, Antifragile is the opposite of fragile. Where a fragile thing breaks up to volatility; a robust thing resists volatility. An antifragile thing gets stronger from volatility (provided the level of stressors and randomness doesn’t pass a certain threshold).

Ergodicity

ergodicity
Ergodicity is one of the most important concepts in statistics. Ergodicity is a mathematical concept suggesting that a point of a moving system will eventually visit all parts of the space the system moves in. On the opposite side, non-ergodic means that a system doesn’t visit all the possible parts, as there are absorbing barriers

Systems Thinking

systems-thinking
Systems thinking is a holistic means of investigating the factors and interactions that could contribute to a potential outcome. It is about thinking non-linearly, and understanding the second-order consequences of actions and input into the system.

Vertical Thinking

vertical-thinking
Vertical thinking, on the other hand, is a problem-solving approach that favors a selective, analytical, structured, and sequential mindset. The focus of vertical thinking is to arrive at a reasoned, defined solution.

Metaphorical Thinking

metaphorical-thinking
Metaphorical thinking describes a mental process in which comparisons are made between qualities of objects usually considered to be separate classifications.  Metaphorical thinking is a mental process connecting two different universes of meaning and is the result of the mind looking for similarities.

Maslow’s Hammer

einstellung-effect
Maslow’s Hammer, otherwise known as the law of the instrument or the Einstellung effect, is a cognitive bias causing an over-reliance on a familiar tool. This can be expressed as the tendency to overuse a known tool (perhaps a hammer) to solve issues that might require a different tool. This problem is persistent in the business world where perhaps known tools or frameworks might be used in the wrong context (like business plans used as planning tools instead of only investors’ pitches).

Peter Principle

peter-principle
The Peter Principle was first described by Canadian sociologist Lawrence J. Peter in his 1969 book The Peter Principle. The Peter Principle states that people are continually promoted within an organization until they reach their level of incompetence.

Straw Man Fallacy

straw-man-fallacy
The straw man fallacy describes an argument that misrepresents an opponent’s stance to make rebuttal more convenient. The straw man fallacy is a type of informal logical fallacy, defined as a flaw in the structure of an argument that renders it invalid.

Google Effect

google-effect
The Google effect is a tendency for individuals to forget information that is readily available through search engines. During the Google effect – sometimes called digital amnesia – individuals have an excessive reliance on digital information as a form of memory recall.

Streisand Effect

streisand-effect
The Streisand Effect is a paradoxical phenomenon where the act of suppressing information to reduce visibility causes it to become more visible. In 2003, Streisand attempted to suppress aerial photographs of her Californian home by suing photographer Kenneth Adelman for an invasion of privacy. Adelman, who Streisand assumed was paparazzi, was instead taking photographs to document and study coastal erosion. In her quest for more privacy, Streisand’s efforts had the opposite effect.

Compromise Effect

compromise-effect
Single-attribute choices – such as choosing the apartment with the lowest rent – are relatively simple. However, most of the decisions consumers make are based on multiple attributes which complicate the decision-making process. The compromise effect states that a consumer is more likely to choose the middle option of a set of products over more extreme options.

Butterfly Effect

butterfly-effect
In business, the butterfly effect describes the phenomenon where the simplest actions yield the largest rewards. The butterfly effect was coined by meteorologist Edward Lorenz in 1960 and as a result, it is most often associated with weather in pop culture. Lorenz noted that the small action of a butterfly fluttering its wings had the potential to cause progressively larger actions resulting in a typhoon.

IKEA Effect

ikea-effect
The IKEA effect is a cognitive bias that describes consumers’ tendency to value something more if they have made it themselves. That is why brands often use the IKEA effect to have customizations for final products, as they help the consumer relate to it more and therefore appending to it more value.

Ringelmann Effect 

Ringelmann Effect
The Ringelmann effect describes the tendency for individuals within a group to become less productive as the group size increases.

The Overview Effect

overview-effect
The overview effect is a cognitive shift reported by some astronauts when they look back at the Earth from space. The shift occurs because of the impressive visual spectacle of the Earth and tends to be characterized by a state of awe and increased self-transcendence.

House Money Effect

house-money-effect
The house money effect was first described by researchers Richard Thaler and Eric Johnson in a 1990 study entitled Gambling with the House Money and Trying to Break Even: The Effects of Prior Outcomes on Risky Choice. The house money effect is a cognitive bias where investors take higher risks on reinvested capital than they would on an initial investment.

Heuristic

heuristic
As highlighted by German psychologist Gerd Gigerenzer in the paper “Heuristic Decision Making,” the term heuristic is of Greek origin, meaning “serving to find out or discover.” More precisely, a heuristic is a fast and accurate way to make decisions in the real world, which is driven by uncertainty.

Recognition Heuristic

recognition-heuristic
The recognition heuristic is a psychological model of judgment and decision making. It is part of a suite of simple and economical heuristics proposed by psychologists Daniel Goldstein and Gerd Gigerenzer. The recognition heuristic argues that inferences are made about an object based on whether it is recognized or not.

Representativeness Heuristic

representativeness-heuristic
The representativeness heuristic was first described by psychologists Daniel Kahneman and Amos Tversky. The representativeness heuristic judges the probability of an event according to the degree to which that event resembles a broader class. When queried, most will choose the first option because the description of John matches the stereotype we may hold for an archaeologist.

Take-The-Best Heuristic

take-the-best-heuristic
The take-the-best heuristic is a decision-making shortcut that helps an individual choose between several alternatives. The take-the-best (TTB) heuristic decides between two or more alternatives based on a single good attribute, otherwise known as a cue. In the process, less desirable attributes are ignored.

Bundling Bias

bundling-bias
The bundling bias is a cognitive bias in e-commerce where a consumer tends not to use all of the products bought as a group, or bundle. Bundling occurs when individual products or services are sold together as a bundle. Common examples are tickets and experiences. The bundling bias dictates that consumers are less likely to use each item in the bundle. This means that the value of the bundle and indeed the value of each item in the bundle is decreased.

Barnum Effect

barnum-effect
The Barnum Effect is a cognitive bias where individuals believe that generic information – which applies to most people – is specifically tailored for themselves.

Anchoring Effect

anchoring-effect
The anchoring effect describes the human tendency to rely on an initial piece of information (the “anchor”) to make subsequent judgments or decisions. Price anchoring, then, is the process of establishing a price point that customers can reference when making a buying decision.

Decoy Effect

decoy-effect
The decoy effect is a psychological phenomenon where inferior – or decoy – options influence consumer preferences. Businesses use the decoy effect to nudge potential customers toward the desired target product. The decoy effect is staged by placing a competitor product and a decoy product, which is primarily used to nudge the customer toward the target product.

Commitment Bias

commitment-bias
Commitment bias describes the tendency of an individual to remain committed to past behaviors – even if they result in undesirable outcomes. The bias is particularly pronounced when such behaviors are performed publicly. Commitment bias is also known as escalation of commitment.

First-Principles Thinking

first-principles-thinking
First-principles thinking – sometimes called reasoning from first principles – is used to reverse-engineer complex problems and encourage creativity. It involves breaking down problems into basic elements and reassembling them from the ground up. Elon Musk is among the strongest proponents of this way of thinking.

Ladder Of Inference

ladder-of-inference
The ladder of inference is a conscious or subconscious thinking process where an individual moves from a fact to a decision or action. The ladder of inference was created by academic Chris Argyris to illustrate how people form and then use mental models to make decisions.

Goodhart’s Law

goodharts-law
Goodhart’s Law is named after British monetary policy theorist and economist Charles Goodhart. Speaking at a conference in Sydney in 1975, Goodhart said that “any observed statistical regularity will tend to collapse once pressure is placed upon it for control purposes.” Goodhart’s Law states that when a measure becomes a target, it ceases to be a good measure.

Six Thinking Hats Model

six-thinking-hats-model
The Six Thinking Hats model was created by psychologist Edward de Bono in 1986, who noted that personality type was a key driver of how people approached problem-solving. For example, optimists view situations differently from pessimists. Analytical individuals may generate ideas that a more emotional person would not, and vice versa.

Mandela Effect

mandela-effect
The Mandela effect is a phenomenon where a large group of people remembers an event differently from how it occurred. The Mandela effect was first described in relation to Fiona Broome, who believed that former South African President Nelson Mandela died in prison during the 1980s. While Mandela was released from prison in 1990 and died 23 years later, Broome remembered news coverage of his death in prison and even a speech from his widow. Of course, neither event occurred in reality. But Broome was later to discover that she was not the only one with the same recollection of events.

Crowding-Out Effect

crowding-out-effect
The crowding-out effect occurs when public sector spending reduces spending in the private sector.

Bandwagon Effect

bandwagon-effect
The bandwagon effect tells us that the more a belief or idea has been adopted by more people within a group, the more the individual adoption of that idea might increase within the same group. This is the psychological effect that leads to herd mentality. What in marketing can be associated with social proof.

Moore’s Law

moores-law
Moore’s law states that the number of transistors on a microchip doubles approximately every two years. This observation was made by Intel co-founder Gordon Moore in 1965 and it become a guiding principle for the semiconductor industry and has had far-reaching implications for technology as a whole.

Disruptive Innovation

disruptive-innovation
Disruptive innovation as a term was first described by Clayton M. Christensen, an American academic and business consultant whom The Economist called “the most influential management thinker of his time.” Disruptive innovation describes the process by which a product or service takes hold at the bottom of a market and eventually displaces established competitors, products, firms, or alliances.

Value Migration

value-migration
Value migration was first described by author Adrian Slywotzky in his 1996 book Value Migration – How to Think Several Moves Ahead of the Competition. Value migration is the transferal of value-creating forces from outdated business models to something better able to satisfy consumer demands.

Bye-Now Effect

bye-now-effect
The bye-now effect describes the tendency for consumers to think of the word “buy” when they read the word “bye”. In a study that tracked diners at a name-your-own-price restaurant, each diner was asked to read one of two phrases before ordering their meal. The first phrase, “so long”, resulted in diners paying an average of $32 per meal. But when diners recited the phrase “bye bye” before ordering, the average price per meal rose to $45.

Groupthink

groupthink
Groupthink occurs when well-intentioned individuals make non-optimal or irrational decisions based on a belief that dissent is impossible or on a motivation to conform. Groupthink occurs when members of a group reach a consensus without critical reasoning or evaluation of the alternatives and their consequences.

Stereotyping

stereotyping
A stereotype is a fixed and over-generalized belief about a particular group or class of people. These beliefs are based on the false assumption that certain characteristics are common to every individual residing in that group. Many stereotypes have a long and sometimes controversial history and are a direct consequence of various political, social, or economic events. Stereotyping is the process of making assumptions about a person or group of people based on various attributes, including gender, race, religion, or physical traits.

Murphy’s Law

murphys-law
Murphy’s Law states that if anything can go wrong, it will go wrong. Murphy’s Law was named after aerospace engineer Edward A. Murphy. During his time working at Edwards Air Force Base in 1949, Murphy cursed a technician who had improperly wired an electrical component and said, “If there is any way to do it wrong, he’ll find it.”

Law of Unintended Consequences

law-of-unintended-consequences
The law of unintended consequences was first mentioned by British philosopher John Locke when writing to parliament about the unintended effects of interest rate rises. However, it was popularized in 1936 by American sociologist Robert K. Merton who looked at unexpected, unanticipated, and unintended consequences and their impact on society.

Fundamental Attribution Error

fundamental-attribution-error
Fundamental attribution error is a bias people display when judging the behavior of others. The tendency is to over-emphasize personal characteristics and under-emphasize environmental and situational factors.

Outcome Bias

outcome-bias
Outcome bias describes a tendency to evaluate a decision based on its outcome and not on the process by which the decision was reached. In other words, the quality of a decision is only determined once the outcome is known. Outcome bias occurs when a decision is based on the outcome of previous events without regard for how those events developed.

Hindsight Bias

hindsight-bias
Hindsight bias is the tendency for people to perceive past events as more predictable than they actually were. The result of a presidential election, for example, seems more obvious when the winner is announced. The same can also be said for the avid sports fan who predicted the correct outcome of a match regardless of whether their team won or lost. Hindsight bias, therefore, is the tendency for an individual to convince themselves that they accurately predicted an event before it happened.

Read Next: BiasesBounded RationalityMandela EffectDunning-Kruger EffectLindy EffectCrowding Out EffectBandwagon Effect.

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