Psycho
Cognitive Biases: How They Secretly Shape Your Decisions
Are those decisions you make really yours? Have you bought something just because everyone owns one? You might believe your choices are logical, but the truth is your brain has been quietly influenced by cognitive biases. These are ways in which the mental faculty works to process information in a short time. Despite numerous benefits, it may lead to missed opportunities and poor decision-making. Let’s explore some common cognitive prejudices, how they work, and how they shape your everyday life.
Confirmation Bias
Anchoring Bias
Anchoring bias is when you are heavily influenced by the first information you see. Imagine going to a supermarket and the first perfume you saw is R500. Later you see another one that goes for R300. Your mind immediately believes that the second bag is a better bargain, even without proof. The first price tag has already shaped your mind about the value of a cologne. To deal with such prejudices, you need to understand how the market works and check other stores.
Availability Heuristic
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Bandwagon Effect
This is when people follow the crowd without looking at it holistically. A new sneaker goes viral on social media because a celebrity wears it. Then suddenly everyone rushes to buy it, not because they need it, but because a celebrity wears it. Even without considering other footwears, many people will jump on it. Although sometimes harmless, it can lead to bad financial decisions.
Halo Effect
The Halo effect refers to a situation where we let someone’s good trait blind us to other undesirable traits. Let’s look at this scenario ; a shopper walks into a store and sees a handbag from a popular brand they already admire for its high-quality shoes. Because they associate the brand with good shoes, they automatically assume the handbag is also top quality — even without checking the material, or online reviews. This could lead to a bad decision as the bag was chosen based on assumptions. Don’t let one single behaviour overshadow other aspects.
Final Thoughts
These prejudices have been around for a long time and here to stay. They occur because we have been programmed to make quick decisions to save time. If you want to make smarter choices, be patient. The next time you go shopping or meet a friend, be certain your decisions are based on facts not emotions.