In the context of cognitive psychology, how might businesses use cognitive biases to their advantage when marketing products?

• A. By ensuring all product information is presented in a completely unbiased and neutral manner
• B. By framing product information to exploit the anchoring bias, making initial prices seem higher so discounts appear more attractive
• C. By only relying on customer testimonials and ignoring psychological principles
• D. By avoiding the use of any persuasive techniques in advertising

Answer: (B)

Verified step by step guidance

1. Step 1: Understand what cognitive biases are — they are systematic patterns of deviation from norm or rationality in judgment, which often influence decision-making unconsciously.
2. Step 2: Identify the anchoring bias, which is a cognitive bias where individuals rely heavily on the first piece of information (the 'anchor') they receive when making decisions.
3. Step 3: Recognize how businesses can use this bias by presenting an initially high price (the anchor) for a product, which sets a reference point in the consumer's mind.
4. Step 4: See how offering a discount from this high anchor price makes the deal appear more attractive, as consumers perceive the discounted price as a better value relative to the anchor.
5. Step 5: Conclude that this strategic framing leverages cognitive biases to influence consumer behavior, rather than presenting information in a completely neutral or unbiased manner.