SlideShare a Scribd company logo
Cognitive Biases &
In eCommerce optimization
How to use this in eCommerce?
> Start with a higher price - that’s made at any new collection / product launch - with
the purpose of selling it in the discount period
> First mover’s advantage
>
Overconfidence effect:
For certain types of questions, answers that people rate as
"99% certain" turn out to be wrong 40% of the time.
Photo by Cody Davis on Unsplash
Amos
Tversky
Daniel
Kahneman
Amos
Tversky
Daniel
Kahneman
Humans are born irrational,
and that has made us better
decision-makers
600 people infected with a deadly disease.
Treatment A: 400 deaths / Treatment B: 200 deaths
Each treatment was presented in a positive and negative frame. For
example, for treatment A:
● Positive frame: Save 200 lives
● Negative frame: 400 people will die
72%
Conversion when
framed positively
22%
Conversion when
framed negatively
“Save 200 lives”
Treatment
A
“400 people will die”
Framing Effect
Drawing different conclusions from the same information, depending on how that information is
presented.
Photo by Khaled Reese from Pexels
There are 103
cognitive biases.
In the last 6 years, we have gained a lot of
experience.
We have analyzed
>41k human-driven A/B testing
experiments made by thousands of
eCommerce websites
We identified the most impactful 12
cognitive biases in web experiments.
Availability cascade
A self-reinforcing process in which
a collective belief gains more and
more plausibility through its
increasing repetition in public
discourse (or "repeat something
long enough and it will become
true")
Fear of missing out
FOMO is a common concern that
others might be having rewarding
experiences from which one is
absent" This social anxiety is
characterized by "a desire to stay
continually connected.
Bandwagon Effect
The human understanding when it
has once adopted an opinion
(either as being the received
opinion or as being agreeable to
itself) draws all things else to
support and agree with it.
Herd mentality
People’s tendency to follow and
copy what most of them are doing.
They are largely influenced by
emotion and instinct, rather than by
their own independent analysis.
Confirmation bias
People’s tendency to search for,
interpret, or recall information in a
way that confirms one's beliefs or
hypotheses
Anchoring
People’s tendency to rely too
heavily, or “anchor”, on one trait or
piece of information when making
decisions (usually the first piece of
information that we acquire on that
subject).
Framing
People draw different conclusions
from the same information
depending on how that information
is presented.
Loss aversion
The disutility of giving up an object
is greater than the utility
associated with acquiring it
Zeigarnik effect
People remember uncompleted or
interrupted tasks better than
completed tasks.
Reciprocity Bias
In reciprocation tendency, people
tend to want to return the favor
when someone helps them or give
them a small favor.
Authority Bias
People’s tendency to attribute
greater accuracy to the opinion of
an authority figure (unrelated to its
content) and be more influenced
by that opinion
Hyperbolic discounting bias:
Is the tendency for people to have
a stronger preference for more
immediate payoffs relative to later
payoffs.
500 data points
12 cognitive biases
6 Type of ML experiments
Thousands of variations
automated.omniconvert.com
Valentin Radu
valentin.radu@omniconvert.com
Thank you!

More Related Content

Similar to Cognitive biases & machine learning in eCommerce Optimization

Influence - The Psychology of Persuasion
Influence - The Psychology of PersuasionInfluence - The Psychology of Persuasion
Influence - The Psychology of Persuasion
Surinder Kumar
 
How to Leverage Behavioral Science Insights for Direct Mail Success
How to Leverage Behavioral Science Insights for Direct Mail SuccessHow to Leverage Behavioral Science Insights for Direct Mail Success
How to Leverage Behavioral Science Insights for Direct Mail Success
Aggregage
 
Introduction to unconscious bias
Introduction to unconscious biasIntroduction to unconscious bias
Introduction to unconscious bias
Karen M. Landolt
 
Nudge v final
Nudge   v finalNudge   v final
Nudge v final
Mauro Meanti
 
Decision making and Social Work
Decision making and Social WorkDecision making and Social Work
Decision making and Social Work
Stephen Webb
 
Brain Hacking: Using behavioural economics and consumer psychology to improve...
Brain Hacking: Using behavioural economics and consumer psychology to improve...Brain Hacking: Using behavioural economics and consumer psychology to improve...
Brain Hacking: Using behavioural economics and consumer psychology to improve...
David Greenwood
 
Principles of behavioural economics
Principles of behavioural economics  Principles of behavioural economics
Principles of behavioural economics
Terry Corby
 
Unconscious Bias: From Awareness to Action (.ppt)
Unconscious Bias: From Awareness to Action (.ppt)Unconscious Bias: From Awareness to Action (.ppt)
Unconscious Bias: From Awareness to Action (.ppt)
Rotary International
 
Persuasion architectures: Nudging People to do the Right Thing
Persuasion architectures: Nudging People to do the Right ThingPersuasion architectures: Nudging People to do the Right Thing
Persuasion architectures: Nudging People to do the Right Thing
User Vision
 
Presentation Ocd
Presentation OcdPresentation Ocd
Presentation OcdPk Doctors
 
Critical Thinking: Cognitive Bias
Critical Thinking: Cognitive BiasCritical Thinking: Cognitive Bias
Critical Thinking: Cognitive BiasJacques de Beaufort
 
Behavioural economics key terms
Behavioural economics key termsBehavioural economics key terms
Behavioural economics key terms
mattbentley34
 
Guest lecture 2017 - There is no 'I' in Marketing
Guest lecture 2017 - There is no 'I' in MarketingGuest lecture 2017 - There is no 'I' in Marketing
Guest lecture 2017 - There is no 'I' in Marketing
Ruben Van Goethem
 
10 cognitive biases that distorts your thinking
10 cognitive biases that distorts your thinking10 cognitive biases that distorts your thinking
10 cognitive biases that distorts your thinking
Col Mukteshwar Prasad
 
UX psychology101 - Asiakkaan kohtaamisessa psykologia on merkittävässä roolissa
UX psychology101 - Asiakkaan kohtaamisessa psykologia on merkittävässä roolissaUX psychology101 - Asiakkaan kohtaamisessa psykologia on merkittävässä roolissa
UX psychology101 - Asiakkaan kohtaamisessa psykologia on merkittävässä roolissa
Nordic Morning
 
Notes - Behavioural Design Workshop (HIF 2013)
Notes - Behavioural Design Workshop (HIF 2013)Notes - Behavioural Design Workshop (HIF 2013)
Notes - Behavioural Design Workshop (HIF 2013)ktphinnovation
 
Management of Organizations-Part I
Management of Organizations-Part IManagement of Organizations-Part I
Management of Organizations-Part I
Ramnath Srinivasan
 
Be a Bias Detective
Be a Bias DetectiveBe a Bias Detective
Be a Bias DetectiveAchin Simhal
 

Similar to Cognitive biases & machine learning in eCommerce Optimization (20)

Influence - The Psychology of Persuasion
Influence - The Psychology of PersuasionInfluence - The Psychology of Persuasion
Influence - The Psychology of Persuasion
 
How to Leverage Behavioral Science Insights for Direct Mail Success
How to Leverage Behavioral Science Insights for Direct Mail SuccessHow to Leverage Behavioral Science Insights for Direct Mail Success
How to Leverage Behavioral Science Insights for Direct Mail Success
 
Introduction to unconscious bias
Introduction to unconscious biasIntroduction to unconscious bias
Introduction to unconscious bias
 
Nudge v final
Nudge   v finalNudge   v final
Nudge v final
 
Power, politics and persuasion
Power, politics and persuasionPower, politics and persuasion
Power, politics and persuasion
 
Decision making and Social Work
Decision making and Social WorkDecision making and Social Work
Decision making and Social Work
 
Semmelweis reflex 12 5-2013
Semmelweis reflex 12 5-2013Semmelweis reflex 12 5-2013
Semmelweis reflex 12 5-2013
 
Brain Hacking: Using behavioural economics and consumer psychology to improve...
Brain Hacking: Using behavioural economics and consumer psychology to improve...Brain Hacking: Using behavioural economics and consumer psychology to improve...
Brain Hacking: Using behavioural economics and consumer psychology to improve...
 
Principles of behavioural economics
Principles of behavioural economics  Principles of behavioural economics
Principles of behavioural economics
 
Unconscious Bias: From Awareness to Action (.ppt)
Unconscious Bias: From Awareness to Action (.ppt)Unconscious Bias: From Awareness to Action (.ppt)
Unconscious Bias: From Awareness to Action (.ppt)
 
Persuasion architectures: Nudging People to do the Right Thing
Persuasion architectures: Nudging People to do the Right ThingPersuasion architectures: Nudging People to do the Right Thing
Persuasion architectures: Nudging People to do the Right Thing
 
Presentation Ocd
Presentation OcdPresentation Ocd
Presentation Ocd
 
Critical Thinking: Cognitive Bias
Critical Thinking: Cognitive BiasCritical Thinking: Cognitive Bias
Critical Thinking: Cognitive Bias
 
Behavioural economics key terms
Behavioural economics key termsBehavioural economics key terms
Behavioural economics key terms
 
Guest lecture 2017 - There is no 'I' in Marketing
Guest lecture 2017 - There is no 'I' in MarketingGuest lecture 2017 - There is no 'I' in Marketing
Guest lecture 2017 - There is no 'I' in Marketing
 
10 cognitive biases that distorts your thinking
10 cognitive biases that distorts your thinking10 cognitive biases that distorts your thinking
10 cognitive biases that distorts your thinking
 
UX psychology101 - Asiakkaan kohtaamisessa psykologia on merkittävässä roolissa
UX psychology101 - Asiakkaan kohtaamisessa psykologia on merkittävässä roolissaUX psychology101 - Asiakkaan kohtaamisessa psykologia on merkittävässä roolissa
UX psychology101 - Asiakkaan kohtaamisessa psykologia on merkittävässä roolissa
 
Notes - Behavioural Design Workshop (HIF 2013)
Notes - Behavioural Design Workshop (HIF 2013)Notes - Behavioural Design Workshop (HIF 2013)
Notes - Behavioural Design Workshop (HIF 2013)
 
Management of Organizations-Part I
Management of Organizations-Part IManagement of Organizations-Part I
Management of Organizations-Part I
 
Be a Bias Detective
Be a Bias DetectiveBe a Bias Detective
Be a Bias Detective
 

More from Valentin Radu

How to increase CLV & decrease CAC - Valentin Radu
How to increase CLV & decrease CAC - Valentin Radu How to increase CLV & decrease CAC - Valentin Radu
How to increase CLV & decrease CAC - Valentin Radu
Valentin Radu
 
15 tactics to increase Customer Lifetime Value in eCommerce
15 tactics to increase Customer Lifetime Value in eCommerce15 tactics to increase Customer Lifetime Value in eCommerce
15 tactics to increase Customer Lifetime Value in eCommerce
Valentin Radu
 
Customer Experience in eCommerce: Net Promoter Score
Customer Experience in eCommerce: Net Promoter ScoreCustomer Experience in eCommerce: Net Promoter Score
Customer Experience in eCommerce: Net Promoter Score
Valentin Radu
 
Product Optimization
Product OptimizationProduct Optimization
Product Optimization
Valentin Radu
 
Why Customer Lifetime Value matters in eCommerce
Why Customer Lifetime Value matters in eCommerceWhy Customer Lifetime Value matters in eCommerce
Why Customer Lifetime Value matters in eCommerce
Valentin Radu
 
RFM segmentation
RFM segmentationRFM segmentation
RFM segmentation
Valentin Radu
 
E commerce strategy during covid 19 downturn - B2C Growth Summit by GMC
E commerce strategy during covid 19 downturn - B2C Growth Summit by GMCE commerce strategy during covid 19 downturn - B2C Growth Summit by GMC
E commerce strategy during covid 19 downturn - B2C Growth Summit by GMC
Valentin Radu
 
How To Web Valentin Radu - Lessons Learned in Getting Our Ideal Customers & K...
How To Web Valentin Radu - Lessons Learned in Getting Our Ideal Customers & K...How To Web Valentin Radu - Lessons Learned in Getting Our Ideal Customers & K...
How To Web Valentin Radu - Lessons Learned in Getting Our Ideal Customers & K...
Valentin Radu
 
The king is dead! Long live the... God? Customer-centricity is becoming a must!
The king is dead! Long live the... God? Customer-centricity is becoming a must!The king is dead! Long live the... God? Customer-centricity is becoming a must!
The king is dead! Long live the... God? Customer-centricity is becoming a must!
Valentin Radu
 
How customer experience will look in an ai driven era - innowave
How customer experience will look in an ai driven era - innowaveHow customer experience will look in an ai driven era - innowave
How customer experience will look in an ai driven era - innowave
Valentin Radu
 
5 maladii ale magazinelor de comert electronic - Valentin Radu Gpec 2019
5 maladii ale magazinelor de comert electronic - Valentin Radu Gpec 20195 maladii ale magazinelor de comert electronic - Valentin Radu Gpec 2019
5 maladii ale magazinelor de comert electronic - Valentin Radu Gpec 2019
Valentin Radu
 
Drive growth for SaaS through LinkedIn HTW 2018
Drive growth for SaaS through LinkedIn HTW 2018Drive growth for SaaS through LinkedIn HTW 2018
Drive growth for SaaS through LinkedIn HTW 2018
Valentin Radu
 
Customer Journey Optimization - GpEC Summit 2018 Presentation
Customer Journey Optimization - GpEC Summit 2018 PresentationCustomer Journey Optimization - GpEC Summit 2018 Presentation
Customer Journey Optimization - GpEC Summit 2018 Presentation
Valentin Radu
 
What's being hidden in your Magento - MeetMagento Cluj 2018
What's being hidden in your Magento - MeetMagento Cluj 2018What's being hidden in your Magento - MeetMagento Cluj 2018
What's being hidden in your Magento - MeetMagento Cluj 2018
Valentin Radu
 
The hidden power of micro-conversions - eCommday 2016
The hidden power of micro-conversions - eCommday 2016The hidden power of micro-conversions - eCommday 2016
The hidden power of micro-conversions - eCommday 2016
Valentin Radu
 
Retention dark horse growth marketing conference
Retention dark horse growth marketing conferenceRetention dark horse growth marketing conference
Retention dark horse growth marketing conference
Valentin Radu
 
How to deliver sustainable growth for e commerce websites Digital Olympus
How to deliver sustainable growth for e commerce websites Digital OlympusHow to deliver sustainable growth for e commerce websites Digital Olympus
How to deliver sustainable growth for e commerce websites Digital Olympus
Valentin Radu
 
How & Why to Make Your Magento eCommerce Customer Centric
How & Why to Make Your Magento eCommerce Customer Centric How & Why to Make Your Magento eCommerce Customer Centric
How & Why to Make Your Magento eCommerce Customer Centric
Valentin Radu
 
Best Practices in E-Commerce App Selection
Best Practices in E-Commerce App SelectionBest Practices in E-Commerce App Selection
Best Practices in E-Commerce App Selection
Valentin Radu
 
How to rock your post purchase marketing communication to sell more
How to rock your post purchase marketing communication to sell moreHow to rock your post purchase marketing communication to sell more
How to rock your post purchase marketing communication to sell more
Valentin Radu
 

More from Valentin Radu (20)

How to increase CLV & decrease CAC - Valentin Radu
How to increase CLV & decrease CAC - Valentin Radu How to increase CLV & decrease CAC - Valentin Radu
How to increase CLV & decrease CAC - Valentin Radu
 
15 tactics to increase Customer Lifetime Value in eCommerce
15 tactics to increase Customer Lifetime Value in eCommerce15 tactics to increase Customer Lifetime Value in eCommerce
15 tactics to increase Customer Lifetime Value in eCommerce
 
Customer Experience in eCommerce: Net Promoter Score
Customer Experience in eCommerce: Net Promoter ScoreCustomer Experience in eCommerce: Net Promoter Score
Customer Experience in eCommerce: Net Promoter Score
 
Product Optimization
Product OptimizationProduct Optimization
Product Optimization
 
Why Customer Lifetime Value matters in eCommerce
Why Customer Lifetime Value matters in eCommerceWhy Customer Lifetime Value matters in eCommerce
Why Customer Lifetime Value matters in eCommerce
 
RFM segmentation
RFM segmentationRFM segmentation
RFM segmentation
 
E commerce strategy during covid 19 downturn - B2C Growth Summit by GMC
E commerce strategy during covid 19 downturn - B2C Growth Summit by GMCE commerce strategy during covid 19 downturn - B2C Growth Summit by GMC
E commerce strategy during covid 19 downturn - B2C Growth Summit by GMC
 
How To Web Valentin Radu - Lessons Learned in Getting Our Ideal Customers & K...
How To Web Valentin Radu - Lessons Learned in Getting Our Ideal Customers & K...How To Web Valentin Radu - Lessons Learned in Getting Our Ideal Customers & K...
How To Web Valentin Radu - Lessons Learned in Getting Our Ideal Customers & K...
 
The king is dead! Long live the... God? Customer-centricity is becoming a must!
The king is dead! Long live the... God? Customer-centricity is becoming a must!The king is dead! Long live the... God? Customer-centricity is becoming a must!
The king is dead! Long live the... God? Customer-centricity is becoming a must!
 
How customer experience will look in an ai driven era - innowave
How customer experience will look in an ai driven era - innowaveHow customer experience will look in an ai driven era - innowave
How customer experience will look in an ai driven era - innowave
 
5 maladii ale magazinelor de comert electronic - Valentin Radu Gpec 2019
5 maladii ale magazinelor de comert electronic - Valentin Radu Gpec 20195 maladii ale magazinelor de comert electronic - Valentin Radu Gpec 2019
5 maladii ale magazinelor de comert electronic - Valentin Radu Gpec 2019
 
Drive growth for SaaS through LinkedIn HTW 2018
Drive growth for SaaS through LinkedIn HTW 2018Drive growth for SaaS through LinkedIn HTW 2018
Drive growth for SaaS through LinkedIn HTW 2018
 
Customer Journey Optimization - GpEC Summit 2018 Presentation
Customer Journey Optimization - GpEC Summit 2018 PresentationCustomer Journey Optimization - GpEC Summit 2018 Presentation
Customer Journey Optimization - GpEC Summit 2018 Presentation
 
What's being hidden in your Magento - MeetMagento Cluj 2018
What's being hidden in your Magento - MeetMagento Cluj 2018What's being hidden in your Magento - MeetMagento Cluj 2018
What's being hidden in your Magento - MeetMagento Cluj 2018
 
The hidden power of micro-conversions - eCommday 2016
The hidden power of micro-conversions - eCommday 2016The hidden power of micro-conversions - eCommday 2016
The hidden power of micro-conversions - eCommday 2016
 
Retention dark horse growth marketing conference
Retention dark horse growth marketing conferenceRetention dark horse growth marketing conference
Retention dark horse growth marketing conference
 
How to deliver sustainable growth for e commerce websites Digital Olympus
How to deliver sustainable growth for e commerce websites Digital OlympusHow to deliver sustainable growth for e commerce websites Digital Olympus
How to deliver sustainable growth for e commerce websites Digital Olympus
 
How & Why to Make Your Magento eCommerce Customer Centric
How & Why to Make Your Magento eCommerce Customer Centric How & Why to Make Your Magento eCommerce Customer Centric
How & Why to Make Your Magento eCommerce Customer Centric
 
Best Practices in E-Commerce App Selection
Best Practices in E-Commerce App SelectionBest Practices in E-Commerce App Selection
Best Practices in E-Commerce App Selection
 
How to rock your post purchase marketing communication to sell more
How to rock your post purchase marketing communication to sell moreHow to rock your post purchase marketing communication to sell more
How to rock your post purchase marketing communication to sell more
 

Recently uploaded

34-Rahul-Mande.pdf PROJECT REPORT MBA 4TH SEMESTER
34-Rahul-Mande.pdf PROJECT REPORT MBA 4TH SEMESTER34-Rahul-Mande.pdf PROJECT REPORT MBA 4TH SEMESTER
34-Rahul-Mande.pdf PROJECT REPORT MBA 4TH SEMESTER
DeepakTripathi733493
 
Digital Marketing Training In Bangalore
Digital Marketing Training In BangaloreDigital Marketing Training In Bangalore
Digital Marketing Training In Bangalore
syedasifsyed46
 
Your Path to Profits - The Game-Changing Power of a Marketing OS for Your Bus...
Your Path to Profits - The Game-Changing Power of a Marketing OS for Your Bus...Your Path to Profits - The Game-Changing Power of a Marketing OS for Your Bus...
Your Path to Profits - The Game-Changing Power of a Marketing OS for Your Bus...
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions
 
Winning local SEO in the Age of AI - Dennis Yu
Winning local SEO in the Age of AI - Dennis YuWinning local SEO in the Age of AI - Dennis Yu
Winning local SEO in the Age of AI - Dennis Yu
Winning local SEO in the Age of AI - Dennis YuWinning local SEO in the Age of AI - Dennis Yu
BLOOM_May2024 (r). Balmer Lawrie Online Monthly Bulletin
BLOOM_May2024 (r). Balmer Lawrie Online Monthly BulletinBLOOM_May2024 (r). Balmer Lawrie Online Monthly Bulletin
BLOOM_May2024 (r). Balmer Lawrie Online Monthly Bulletin
BalmerLawrie
 
AI-Powered Personalization: Principles, Use Cases, and Its Impact on CRO
AI-Powered Personalization: Principles, Use Cases, and Its Impact on CROAI-Powered Personalization: Principles, Use Cases, and Its Impact on CRO
AI-Powered Personalization: Principles, Use Cases, and Its Impact on CRO
VWO
 
Coca Cola Branding Strategy and strategic marketing plan
Coca Cola Branding Strategy and strategic marketing planCoca Cola Branding Strategy and strategic marketing plan
Coca Cola Branding Strategy and strategic marketing plan
Maswer Ali
 
Mastering Multi-Touchpoint Content Strategy: Navigate Fragmented User Journeys
Mastering Multi-Touchpoint Content Strategy: Navigate Fragmented User JourneysMastering Multi-Touchpoint Content Strategy: Navigate Fragmented User Journeys
Mastering Multi-Touchpoint Content Strategy: Navigate Fragmented User Journeys
Search Engine Journal
 
Turn Digital Reputation Threats into Offense Tactics - Daniel Lemin
Turn Digital Reputation Threats into Offense Tactics - Daniel LeminTurn Digital Reputation Threats into Offense Tactics - Daniel Lemin
Turn Digital Reputation Threats into Offense Tactics - Daniel Lemin
DigiMarCon - Digital Marketing, Media and Advertising Conferences & Exhibitions
 
FullSail: HOF - Presentation Phil Pallen
FullSail: HOF - Presentation Phil PallenFullSail: HOF - Presentation Phil Pallen
FullSail: HOF - Presentation Phil Pallen
travisomalana
 
The What, Why & How of 3D and AR in Digital Commerce
The What, Why & How of 3D and AR in Digital CommerceThe What, Why & How of 3D and AR in Digital Commerce
The What, Why & How of 3D and AR in Digital Commerce
PushON Ltd
 
How to Run Landing Page Tests On and Off Paid Social Platforms
How to Run Landing Page Tests On and Off Paid Social PlatformsHow to Run Landing Page Tests On and Off Paid Social Platforms
How to Run Landing Page Tests On and Off Paid Social Platforms
VWO
 
De-risk Your Digital Evolution - Hannah Grap
De-risk Your Digital Evolution - Hannah GrapDe-risk Your Digital Evolution - Hannah Grap
Digital Marketing Trends - Experts Insights on How
Digital Marketing Trends - Experts Insights on HowDigital Marketing Trends - Experts Insights on How
BLOOM_May2024. Balmer Lawrie Online Monthly Bulletin
BLOOM_May2024. Balmer Lawrie Online Monthly BulletinBLOOM_May2024. Balmer Lawrie Online Monthly Bulletin
BLOOM_May2024. Balmer Lawrie Online Monthly Bulletin
BalmerLawrie
 
The Old Oak - Press Kit - Cannes Film Festival 2023
The Old Oak - Press Kit - Cannes Film Festival 2023The Old Oak - Press Kit - Cannes Film Festival 2023
The Old Oak - Press Kit - Cannes Film Festival 2023
Pascal Fintoni
 
May 2024 - VBOUT Partners Meeting Group Session
May 2024 - VBOUT Partners Meeting Group SessionMay 2024 - VBOUT Partners Meeting Group Session
May 2024 - VBOUT Partners Meeting Group Session
Vbout.com
 
Digital Commerce Lecture for Advanced Digital & Social Media Strategy at UCLA...
Digital Commerce Lecture for Advanced Digital & Social Media Strategy at UCLA...Digital Commerce Lecture for Advanced Digital & Social Media Strategy at UCLA...
Digital Commerce Lecture for Advanced Digital & Social Media Strategy at UCLA...
Valters Lauzums
 
Marketing Management Notes Philip Kotler
Marketing Management Notes Philip KotlerMarketing Management Notes Philip Kotler
Marketing Management Notes Philip Kotler
LaveenaShanker
 

Recently uploaded (20)

34-Rahul-Mande.pdf PROJECT REPORT MBA 4TH SEMESTER
34-Rahul-Mande.pdf PROJECT REPORT MBA 4TH SEMESTER34-Rahul-Mande.pdf PROJECT REPORT MBA 4TH SEMESTER
34-Rahul-Mande.pdf PROJECT REPORT MBA 4TH SEMESTER
 
Digital Marketing Training In Bangalore
Digital Marketing Training In BangaloreDigital Marketing Training In Bangalore
Digital Marketing Training In Bangalore
 
Your Path to Profits - The Game-Changing Power of a Marketing OS for Your Bus...
Your Path to Profits - The Game-Changing Power of a Marketing OS for Your Bus...Your Path to Profits - The Game-Changing Power of a Marketing OS for Your Bus...
Your Path to Profits - The Game-Changing Power of a Marketing OS for Your Bus...
 
Winning local SEO in the Age of AI - Dennis Yu
Winning local SEO in the Age of AI - Dennis YuWinning local SEO in the Age of AI - Dennis Yu
Winning local SEO in the Age of AI - Dennis Yu
 
Winning local SEO in the Age of AI - Dennis Yu
Winning local SEO in the Age of AI - Dennis YuWinning local SEO in the Age of AI - Dennis Yu
Winning local SEO in the Age of AI - Dennis Yu
 
BLOOM_May2024 (r). Balmer Lawrie Online Monthly Bulletin
BLOOM_May2024 (r). Balmer Lawrie Online Monthly BulletinBLOOM_May2024 (r). Balmer Lawrie Online Monthly Bulletin
BLOOM_May2024 (r). Balmer Lawrie Online Monthly Bulletin
 
AI-Powered Personalization: Principles, Use Cases, and Its Impact on CRO
AI-Powered Personalization: Principles, Use Cases, and Its Impact on CROAI-Powered Personalization: Principles, Use Cases, and Its Impact on CRO
AI-Powered Personalization: Principles, Use Cases, and Its Impact on CRO
 
Coca Cola Branding Strategy and strategic marketing plan
Coca Cola Branding Strategy and strategic marketing planCoca Cola Branding Strategy and strategic marketing plan
Coca Cola Branding Strategy and strategic marketing plan
 
Mastering Multi-Touchpoint Content Strategy: Navigate Fragmented User Journeys
Mastering Multi-Touchpoint Content Strategy: Navigate Fragmented User JourneysMastering Multi-Touchpoint Content Strategy: Navigate Fragmented User Journeys
Mastering Multi-Touchpoint Content Strategy: Navigate Fragmented User Journeys
 
Turn Digital Reputation Threats into Offense Tactics - Daniel Lemin
Turn Digital Reputation Threats into Offense Tactics - Daniel LeminTurn Digital Reputation Threats into Offense Tactics - Daniel Lemin
Turn Digital Reputation Threats into Offense Tactics - Daniel Lemin
 
FullSail: HOF - Presentation Phil Pallen
FullSail: HOF - Presentation Phil PallenFullSail: HOF - Presentation Phil Pallen
FullSail: HOF - Presentation Phil Pallen
 
The What, Why & How of 3D and AR in Digital Commerce
The What, Why & How of 3D and AR in Digital CommerceThe What, Why & How of 3D and AR in Digital Commerce
The What, Why & How of 3D and AR in Digital Commerce
 
How to Run Landing Page Tests On and Off Paid Social Platforms
How to Run Landing Page Tests On and Off Paid Social PlatformsHow to Run Landing Page Tests On and Off Paid Social Platforms
How to Run Landing Page Tests On and Off Paid Social Platforms
 
De-risk Your Digital Evolution - Hannah Grap
De-risk Your Digital Evolution - Hannah GrapDe-risk Your Digital Evolution - Hannah Grap
De-risk Your Digital Evolution - Hannah Grap
 
Digital Marketing Trends - Experts Insights on How
Digital Marketing Trends - Experts Insights on HowDigital Marketing Trends - Experts Insights on How
Digital Marketing Trends - Experts Insights on How
 
BLOOM_May2024. Balmer Lawrie Online Monthly Bulletin
BLOOM_May2024. Balmer Lawrie Online Monthly BulletinBLOOM_May2024. Balmer Lawrie Online Monthly Bulletin
BLOOM_May2024. Balmer Lawrie Online Monthly Bulletin
 
The Old Oak - Press Kit - Cannes Film Festival 2023
The Old Oak - Press Kit - Cannes Film Festival 2023The Old Oak - Press Kit - Cannes Film Festival 2023
The Old Oak - Press Kit - Cannes Film Festival 2023
 
May 2024 - VBOUT Partners Meeting Group Session
May 2024 - VBOUT Partners Meeting Group SessionMay 2024 - VBOUT Partners Meeting Group Session
May 2024 - VBOUT Partners Meeting Group Session
 
Digital Commerce Lecture for Advanced Digital & Social Media Strategy at UCLA...
Digital Commerce Lecture for Advanced Digital & Social Media Strategy at UCLA...Digital Commerce Lecture for Advanced Digital & Social Media Strategy at UCLA...
Digital Commerce Lecture for Advanced Digital & Social Media Strategy at UCLA...
 
Marketing Management Notes Philip Kotler
Marketing Management Notes Philip KotlerMarketing Management Notes Philip Kotler
Marketing Management Notes Philip Kotler
 

Cognitive biases & machine learning in eCommerce Optimization

  • 1. Cognitive Biases & In eCommerce optimization
  • 2. How to use this in eCommerce? > Start with a higher price - that’s made at any new collection / product launch - with the purpose of selling it in the discount period > First mover’s advantage >
  • 3. Overconfidence effect: For certain types of questions, answers that people rate as "99% certain" turn out to be wrong 40% of the time. Photo by Cody Davis on Unsplash
  • 5. Amos Tversky Daniel Kahneman Humans are born irrational, and that has made us better decision-makers
  • 6. 600 people infected with a deadly disease. Treatment A: 400 deaths / Treatment B: 200 deaths Each treatment was presented in a positive and negative frame. For example, for treatment A: ● Positive frame: Save 200 lives ● Negative frame: 400 people will die
  • 7. 72% Conversion when framed positively 22% Conversion when framed negatively “Save 200 lives” Treatment A “400 people will die”
  • 8. Framing Effect Drawing different conclusions from the same information, depending on how that information is presented. Photo by Khaled Reese from Pexels
  • 10. In the last 6 years, we have gained a lot of experience.
  • 11. We have analyzed >41k human-driven A/B testing experiments made by thousands of eCommerce websites
  • 12. We identified the most impactful 12 cognitive biases in web experiments.
  • 13. Availability cascade A self-reinforcing process in which a collective belief gains more and more plausibility through its increasing repetition in public discourse (or "repeat something long enough and it will become true") Fear of missing out FOMO is a common concern that others might be having rewarding experiences from which one is absent" This social anxiety is characterized by "a desire to stay continually connected. Bandwagon Effect The human understanding when it has once adopted an opinion (either as being the received opinion or as being agreeable to itself) draws all things else to support and agree with it. Herd mentality People’s tendency to follow and copy what most of them are doing. They are largely influenced by emotion and instinct, rather than by their own independent analysis. Confirmation bias People’s tendency to search for, interpret, or recall information in a way that confirms one's beliefs or hypotheses Anchoring People’s tendency to rely too heavily, or “anchor”, on one trait or piece of information when making decisions (usually the first piece of information that we acquire on that subject).
  • 14. Framing People draw different conclusions from the same information depending on how that information is presented. Loss aversion The disutility of giving up an object is greater than the utility associated with acquiring it Zeigarnik effect People remember uncompleted or interrupted tasks better than completed tasks. Reciprocity Bias In reciprocation tendency, people tend to want to return the favor when someone helps them or give them a small favor. Authority Bias People’s tendency to attribute greater accuracy to the opinion of an authority figure (unrelated to its content) and be more influenced by that opinion Hyperbolic discounting bias: Is the tendency for people to have a stronger preference for more immediate payoffs relative to later payoffs.
  • 15. 500 data points 12 cognitive biases 6 Type of ML experiments Thousands of variations
  • 16.
  • 17.