LAW 122 Lecture Notes - Lecture 1: Blackberry, Statistical Hypothesis Testing, Confirmation Bias
24 Mar 2016
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Document Summary
Interaction between word of mouth, experience, and advertising messages (they create expectations). The conirmation bias people often seek information that conirms rather than disconirms their original hypothesis. Common belief: arthritis associated with changes in weather followed 18 arthritis patients for 15 months 2 x per month assessed: pain and joint tenderness weather correlated pain/tenderness with weather. Results: correlation between pain and weather near zero!!! in this study. We do not see things as they are; we see things as we are. People are fond of evidence that will conirm, rather than challenge, their current beliefs. Marketing examples: the simply smart showerhead- holiday inn. Advertised new showerhead- started getting positive mentions referring to showerhead from guests: price of a mercedes. Previous mercedes owners tend to pay more for the same product as a new customer- due to positive reinforcements that the product is worth the price therefore more willing to pay a higher rate: rooing contract.
