BIAS OF THE MONTH: DIVERSIFICATION HEURISTIC
We hedge our bets.
When faced with a decision that involves multiple items needing to be selected for future consumption, our brains are wired to minimise risk by opting for a diverse option.
When young trick-or-treaters were asked to choose two chocolate bars from a mix of two brands, all children picked one of each. In another condition, children visited two houses and were asked to choose only one chocolate bar per house visited.Β
The result: only 48% picked different chocolate bars.
UNSEEN OPPORTUNITY Want to encourage variety in purchase decisions? Consider making future needs more salient than immediate consumption.
References:
Read, D., & Loewenstein, G. (1995). Diversification bias: Explaining the discrepancy Β in variety seeking between combined and separated choices. Journal of Experimental Psychology: Applied, 1(1), 34.
