Download What are the Most Important Decision Making

What are the Most Important
Decision Making Biases in
Entrepreneurial Marketing Behavior
Elmira Shahriari
PhD Marketing student
New Mexico State University
Main steps in this study
-Definitions according to the literature review
-Conduct several personal interviews and read
some online interviews
-Findings and conclusion
Goal:
To find the most common and important
biases in marketing decisions, in order to use
the positive influences to our advantage
and to stop their negative influences.
Macro storytelling
What are the main external factors (social,
economical, governmental,…) influencing the
entrepreneurial marketing decision making biases
Micro storytelling
What are the main internal factors ( personal,
organizational,…) influencing the entrepreneurial
marketing decision making biases
Biases
A cognitive bias is the human tendency to draw incorrect conclusions
in certain circumstances based on cognitive factors rather than
evidence.
Biases in Marketing
Those biases which influence the marketers’ decisions about
designing the 4Ps, unconsciously.
Biases in Entrepreneurship
Entrepreneurs’ decision biases which are based on various factors
and are about running a business in different stages of its life cycle.
Influential factors on entrepreneurs’
decisions
-Personal
-Environmental
-Organizational
Personal Factors:
-Previous Experience
-Self-Efficacy
-Internal locus of control
-Personal Optimism
-Risk-taking Propensity
-Positive Emotions
Environmental Factors:
-Environmental Pressure
-Lack of Resources
Organizational Factors:
-Limitations in information processing
-Lack of decision-making procedures
The most important biases which are
common between Entrepreneurship and
Marketing
-Over Confidence
-Escalation of Commitment
-Loss Aversion
-Planning Fallacy
-Illusion of Control
-Status Quo
-Optimism
-The Belief in the Law of Small Numbers
Findings and Conclusion
According to the frequency of the biases in
marketers’ decisions, the most common biases
are known as:
-Over Confidence
-Illusion of Control
-Escalation of Commitment
-Planning Fallacy
Thank You!