Most common heuristics and biases in nascent entrepreneurs’ marketing behavior

Nouri, Pouria; Imanipour, Narges; Talebi, K H Sagheb; Zali, Mohammadreza

doi:10.1080/08276331.2018.1427406

Cited by 19 publications

(12 citation statements)

References 66 publications

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“…The study results show that analogy's escalating commitment bias, availability bias, and reasoning were not significant. They are in line with Meissner and Wulf (2017) and Nouri et al (2018) and indicate a substantial impact of representativeness, escalation of commitment and the illusion of control on the quality of entrepreneur marketing behaviour and decision making.…”

Section: Discussionsupporting

confidence: 72%

“…They suggested future research to reduce the limitation by expanding the study sample to enhance the generalizability. Nouri et al (2018) studied the impact of the biases in entrepreneurs' decisions on marketing behaviour in small business. They operationalized the heuristics and biases into dimensions, namely, the availability, representativeness, escalation of commitment and illusion of control heuristics.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Therefore, they will focus on intensifying strategic decision-making and countering cognitive bias in decision-making toward being more rational, logical, realistic, objective, and based on the extensive evaluation. This is a crucial point, as it will reduce the gaps in the academic literature that correlates the behaviour, physiology and management at the executive and management levels, as this academic field lacks papers and adequate knowledge following the instructions of AlKhars et al (2019) and Nouri et al (2018).…”

Section: Introductionmentioning

confidence: 99%

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The association between cognitive biases and the quality of strategic decision making: Evidence from Jordanian banks

Jarrar

2021

Banks and Bank Systems

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Excellence in strategic decision making is the driving force behind successful strategy adoption and implementation. However, it is becoming more and more complex as businesses emerge in unpredictable environments and conditions. The main objective of this study is to investigate the impact of cognitive bias and its dimensions (the illusion of control, prior hypothesis bias, escalating commitment bias and representativeness, and availability bias) on strategic decision making. In terms of methodology, the study used a random sampling technique. The study applied a survey as a research tool distributed among 138 bankers (employees at the managerial level) in managerial and administrative positions. Further, descriptive analysis and regression analysis were used to analyze the data and test hypotheses. The results show a positive and significant effect of the illusion of control and representativeness. The results show that the illusion of control, prior hypothesis bias, escalating commitment bias and representativeness, and availability bias significantly impact the strategic decision-making in Jordanian banks. It is concluded that the null hypothesis will be accepted and, therefore, the alternative hypothesis will be rejected based on the significant levels for the primary and secondary hypotheses. The factors of the escalating commitment bias, the availability bias, and the reasoning by analogy were not significant. Finally, the study recommends developing more literature on integrating psychology and discrimination and applying the research to different industries and managerial levels.

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Section: Discussionsupporting

confidence: 72%

Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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The association between cognitive biases and the quality of strategic decision making: Evidence from Jordanian banks

Jarrar

2021

Banks and Bank Systems

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“…Meanwhile, most of the previous researchers have studied heuristics and biases in some specific phases of the entrepreneurship process (e.g. new venture creation, entry decisions as well as opportunity evaluation), thus ignoring the role of heuristics and biases in other equally important entrepreneurial decisions, like the marketing decisions (Nouri et al , 2018). On the other hand, female entrepreneurs are vital for economic prosperity (Brush and Cooper, 2012) and new venture creation (Langowitz and Minniti, 2007).…”

Section: Introductionmentioning

confidence: 99%

Exploring female entrepreneurs’ marketing decisions with a heuristics and biases approach

Nouri

Imanipour

Ahmadikafeshani

2019

Self Cite

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Purpose This study furthers the body of knowledge on entrepreneurial decision-making, entrepreneurial marketing and female entrepreneurs by exploring practical implications of heuristics and biases in female entrepreneurs’ marketing decisions. Heuristics and biases influence many entrepreneurial decisions. Moreover, some of the most important entrepreneurial decisions are marketing-related. Given that the entrepreneurial marketing behavior emanates from entrepreneurial thinking and decision-making, one may conclude that female entrepreneurs’ marketing decisions are susceptible to heuristics and biases. This paper aims to explore the outcomes of heuristics and biases in entrepreneurial marketing decisions. Design/methodology/approach Data were collected by conducting semi-structured interviews with 19 Iranian female biotech entrepreneurs and analyzed by thematic analysis. Findings The findings indicate that introducing pioneering products to the market, overestimating product’s market appeal, unprepared entry, underestimating the competition, overcoming entry impediments, entry postponement, growth, success in incremental innovation and failure in radical innovation are the main outcomes of the identified heuristics and biases in the female entrepreneurs’ marketing decisions. Practical implications This paper has some precious practical implications for marketers as well as female entrepreneurs running small businesses. Generally speaking, reducing the negative impacts of the identified heuristics and biases of this study while enhancing their positive effects will increase the chances of female entrepreneurs to compete and succeed in tumultuous markets. Furthermore, our most important managerial implication is regarding overconfidence, which was very common in the female entrepreneurs’ marketing decisions by having various positive and negative outcomes. Thus, female entrepreneurs should be careful of this fateful bias in their decisions by knowing the most common signs of overconfidence. Originality/value This paper is unique because of not only identifying the main heuristics and biases but also their major outcomes in entrepreneurs’ major marketing decisions. Moreover, this paper is a pioneer in exploring heuristics and biases in female entrepreneurs’ decisions.

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“…For example, a study by Hussain and Oestreicher (2018) explores how heuristics can lead to cognitive biases in the formulation of medical judgements by medical professionals. Other empirical studies have also examined heuristics and biases in various judgement and decision-making contexts such as finance (Otuteye and Siddiquee, 2015), bioethics (Blumenthal-Barby, 2016), and marketing (Nouri et al, 2018), among others.…”

Section: Heuristic and Cognitive Biasmentioning

confidence: 99%

A Qualitative Exploration of Heuristics and Cognitive Biases in Auditor Judgements

Maradona

2020

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Professional judgement is inherent in financial statement audits because various methods, techniques, or approaches prescribed in auditing standards do not provide auditors with detailed guidance or specific audit criteria. While auditors are expected to exercise their judgements based on careful reasoning, there is a possibility that they do not always follow such an approach and instead make their judgements using heuristics. This study aims to penetrate and reveal whether there are cognitive biases in the judgements of auditors and what heuristics lead to these biases. This study employs a qualitative research design and uses ethnomethodology as a research approach. Data were collected using in-depth semi-structured interviews with 15 auditors who were either partners, managers, seniors, or juniors at a public accounting firm. Using the heuristic-bias framework as a theoretical lens and based on an analysis involving data condensation, data display, and conclusion drawing and verification, this study identifies five types of biases that auditors can experience: jumping to conclusions, groupthink, representativeness, availability, and anchoring biases. The results of this study present practical implications for auditors, accounting professional associations, public accounting firms, and academic institutions. That is, the findings provide insights for formulating strategies aimed at raising auditors’ awareness about possible systematic errors, or biases, in professional judgements when auditors rely on heuristics as a simplifying judgement-making strategy.

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Most common heuristics and biases in nascent entrepreneurs’ marketing behavior

Cited by 19 publications

References 66 publications

The association between cognitive biases and the quality of strategic decision making: Evidence from Jordanian banks

The association between cognitive biases and the quality of strategic decision making: Evidence from Jordanian banks

Exploring female entrepreneurs’ marketing decisions with a heuristics and biases approach

A Qualitative Exploration of Heuristics and Cognitive Biases in Auditor Judgements

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