This presentation talks about the famous theory of Behavioral Economics- ' Confirmation Bias'. It also lists out several marketing applications & examples.

2. Confirmation bias is a tendency people have to interpret evidence in ways that
supports or preserves their existing beliefs, which sometimes leads to statistical errors.
 Confirmation bias is a phenomenon wherein decision makers have been shown to
actively seek out and assign more weight to evidence that confirms their hypothesis, and
ignore or underweigh evidence that could disconfirm their hypothesis.
 Confirmation bias is a filter through which you see a reality that matches your
expectations. It causes you to think selectively, but the real trouble begins when
confirmation bias distorts your active pursuit of facts.
Biased
Selection of
Evidence
Biased
Interpretation
of Evidence

3. 1) FREELANCER.COM | MAILCHIMP.COM
Customer Loyalty and Retention
Action
• Affirmation messages
Behaviour
• Confirmation bias of quality
work done
Result
• Loyal Customers

4. Colgate Kitchen Entrees
Ford Edsel – Product Failure
• Market
Research
• New features
and premium
pricing
Confirmation
Bias
Outcome-
Product
failed
2) COLGATE|FORD EDSEL
Brand Failure and Product Failure
•Launched
scented
soaps
•Huge
success
1806
• Introduced -
Colgate
Kitchen
Entrees
• Past success
and growing
frozen meal
market
1982
• Invested
more $16
million to
promote it.
• Product
failed
1985
• 1957, economic
recession
•Bizarre pricing
strategy

5. Monochromatic Screen
with a Green backlight
& the most popular
‘Snake’ game
Set people on the path
of gadget-obsessed
geek
Finnish design
aesthetics, reduced
size with every
generation of mobiles
Nokia DNA- Distinct
but consistent
‘Candy bar’ look
Possibility of Flip-
phones (Moto Razr)
neglected
Heavily relied on
Symbian OS, App store
only for tech-savvy
people
Apple i-phone
Revolution, 2007
Once over 50% Global
Market share started
falling QoQ
Failed attempt to move
towards Windows OS,
LUMIA phones
Once over a 50% of Market Share
(Globally) was later sold out to
Microsoft for $ 7.5 Billion.
Even the mightiest & strongest companies can
fall because of confirmation bias.

6. Presented
&
Submitted By,
Group-06, Marketing, 2014-2016 Batch
14020841036 Divnay Bhutra S
14020841136 Kashyap Shah
14020841123 Anubhuti Gupta
Webliography
http://www.bouty.net/2015/07/
marketing-failure-case-colgate-
kitchen-entrees/
https://en.wikipedia.org/wiki/Ed
sel
www.cnet.com/news/farewell-
nokia-the-rise-and-fall-of-a-
mobile-pioneer/
http://www.smartinsights.com/p
ersuasion-marketing/persuasion-
marketing-
principles/confirmation-bias-
customer-loyalty/