A cognitive bias that causes people to believe they are less likely to experience negative events and more likely to experience positive events than others. Crucial for understanding user risk perception and designing systems that account for unrealistic optimism.
A decision-making tool that helps prioritize tasks or projects based on specific criteria, such as impact and effort. Essential for effective project management and resource allocation.
The tendency to perceive a greater quantity as a better value, regardless of the actual utility. Important for understanding consumer behavior and designing effective marketing strategies.
A principle often used in behavioral economics that suggests people evaluate options based on relative comparisons rather than absolute values. Important for understanding decision-making and designing choices that highlight beneficial comparisons.
A cognitive bias where people prefer the option that seems to eliminate risk entirely, even if another option offers a greater overall benefit. Important for understanding decision-making and designing risk communication for users.
The tendency for people to defer purchasing decisions to a later time, often leading to procrastination. Important for understanding consumer behavior and optimizing sales strategies.
The change in opinions or behavior that occurs when individuals conform to the information provided by others. Important for understanding social dynamics and designing systems that leverage social proof and peer influence.
A cognitive bias where individuals overestimate the likelihood of extreme events regressing to the mean. Crucial for understanding decision-making and judgment under uncertainty.
A cognitive bias where people's decisions are influenced by how information is presented rather than just the information itself. Crucial for designers to minimize bias in how information is presented to users.
The cognitive bias where people treat a set of items as more significant when they are perceived as a cohesive group. Important for understanding user perception and decision-making.
The compromises made between different design options, balancing various factors like usability, aesthetics, and functionality. Essential for making informed decisions that optimize overall design effectiveness.
The tendency to overvalue new innovations and technologies while undervaluing existing or traditional approaches. Important for balanced decision-making and avoiding unnecessary risks in adopting new technologies.
A logical fallacy that occurs when one assumes that what is true for a part is also true for the whole. Important for avoiding incorrect assumptions in design and decision-making.
A cognitive bias where consumers change their preference between two options when presented with a third, less attractive option. Useful for designers to create choice architectures that effectively influence user decisions.
A cognitive bias where individuals evaluate outcomes relative to a reference point rather than on an absolute scale. Essential for understanding decision-making and consumer behavior.
A phenomenon where the success or failure of a design or business outcome is influenced by external factors beyond the control of the decision-makers, akin to serendipity. Important for recognizing and accounting for external influences in performance evaluations to ensure fair assessments and informed decisions.
A digital replica of a physical entity, used to simulate, analyze, and optimize real-world operations. Essential for improving operational efficiency and decision-making.
A cognitive bias where individuals give stronger weight to payoffs that are closer to the present time compared to those in the future. Important for understanding user time-related decision-making and designing systems that encourage long-term thinking.
A phenomenon where individuals' preferences between options change when the options are presented in different ways or contexts. Important for understanding and designing around inconsistencies in user choices.
A cognitive bias where individuals' expectations influence their perceptions and judgments. Relevant for understanding how expectations skew perceptions and decisions among users.
Business Rules Engine (BRE) is a software system that executes one or more business rules in a runtime production environment. Crucial for automating decision-making processes and ensuring consistency and compliance in digital products.
The economic theory that suggests limited availability of a resource increases its value, influencing decision-making and behavior. Important for creating urgency and increasing perceived value in marketing.
Human in the Loop (HITL) integrates human judgment into the decision-making process of AI systems. Crucial for ensuring AI reliability and alignment with human values.
A graphical representation of the distribution of numerical data, typically showing the frequency of data points in successive intervals. Important for analyzing and interpreting data distributions, aiding in decision-making and optimization in product design.
A cognitive bias that causes people to overestimate the likelihood of negative outcomes. Important for understanding user risk perception and designing systems that address irrational pessimism.
The process of using statistical analysis and modeling to explore and interpret business data to make informed decisions. Essential for improving business performance, identifying opportunities for growth, and driving strategic planning.
A cognitive bias where the pain of losing is psychologically more powerful than the pleasure of gaining. Important for designing user experiences that account for and mitigate loss aversion.
A cognitive bias where people prefer a greater variety of options when making simultaneous choices compared to sequential choices. Important for designers to consider user preferences for variety when designing choice architectures and product offerings.
A moment of significant change in a process or system, where the direction of growth, performance, or trend shifts markedly. Important for recognizing critical transitions in design or business strategies, enabling timely adjustments and informed decision-making.
A group of stakeholders that regularly meet to discuss and guide the development and strategy of a product or product line. Crucial for ensuring diverse input and alignment on product strategy and decisions.
Cost of Delay (CoD) is a metric that quantifies the economic impact of delaying a project, feature, or task. Important for making informed decisions about project prioritization and resource allocation.
Key Performance Indicators (KPIs) are quantifiable measures used to evaluate the success of an organization, employee, or project in meeting objectives for performance. Essential for tracking progress, making informed decisions, and aligning efforts with strategic goals across various business functions, including product design and development.
A concept in behavioral economics that describes how future benefits are perceived as less valuable than immediate ones. Important for understanding user preferences and designing experiences that account for time-based value perceptions.
A cognitive bias where people overestimate the probability of success for difficult tasks and underestimate it for easy tasks. Useful for designers to understand user confidence and design
The strategic objectives that an organization aims to achieve, guiding its operations and decision-making processes. Important for aligning digital product development with the broader mission and objectives of the organization.
The tendency to overestimate the duration or intensity of the emotional impact of future events. Important for understanding user expectations and satisfaction.
A time management tool that helps prioritize tasks based on their urgency and importance, dividing them into four quadrants. Essential for designing productivity tools and strategies.
Messenger, Incentives, Norms, Defaults, Salience, Priming, Affect, Commitment, and Ego (MINDSPACE) is a framework used to understand and influence behavior. Crucial for designing interventions that effectively influence user behavior.
A cognitive bias where people prefer a smaller set of higher-quality options over a larger set with lower overall quality. Useful for designing product offerings and experiences that emphasize quality over quantity for users.
The Principle of Choices is an information architecture guideline that emphasizes providing users with meaningful options to navigate and interact with a system. Crucial for enhancing user experience by ensuring users can easily find what they need without being overwhelmed.
The act of designing and implementing subtle interventions to influence behavior in a predictable way. Crucial for guiding user behavior effectively without limiting freedom of choice.
The process of triggering particular aspects of a person's identity to influence their behavior or decisions. Important for designing personalized and effective user experiences.
The psychological phenomenon where people prefer options that are not too extreme, but just right. Crucial for designing products and experiences that cater to the majority preference.
The tendency to overestimate how much our future preferences and behaviors will align with our current preferences and behaviors. Important for understanding user behavior and designing experiences that account for changes over time.
The degree to which users feel they have control over their actions and decisions when interacting with a product or system. Crucial for designing systems that empower users and enhance their sense of control and satisfaction.
The tendency for people to overestimate their ability to control events. Important for understanding user behavior and designing experiences that manage expectations.
The series of actions or operations involved in the acquisition, interpretation, storage, and retrieval of information. Crucial for understanding how users handle information and designing systems that align with cognitive processes.
A cognitive bias where individuals underestimate the time, costs, and risks of future actions while overestimating the benefits. Important for realistic project planning and setting achievable goals for designers.
The tendency to attribute intentional actions to others' behaviors, often overestimating their intent. Important for understanding and mitigating biases in user interactions and feedback.
A decision-making strategy where individuals allocate resources proportionally to the probability of an outcome occurring, rather than optimizing the most likely outcome. Important for understanding decision-making behaviors and designing systems that guide better resource allocation.
Representativeness is a heuristic in decision-making where individuals judge the probability of an event based on how much it resembles a typical case. Crucial for understanding biases in human judgment and improving decision-making processes.
A decision-making paradox that shows people's preferences can violate the expected utility theory, highlighting irrational behavior. Important for understanding inconsistencies in user decision-making and designing better user experiences.
A cognitive bias where decision-making is affected by the lack of information or uncertainty. Important for understanding and mitigating user decision-making biases due to uncertainty or lack of information.
A cognitive bias where people ignore general statistical information in favor of specific information. Critical for designers to use general statistical information to improve decision-making accuracy and avoid bias.
The tendency for individuals to continue a behavior or endeavor as a result of previously invested resources (time, money, or effort) rather than future potential benefits. Important for understanding decision-making biases and designing systems that help users avoid irrational persistence.
The phenomenon where people continue a failing course of action due to the amount of resources already invested. Important for recognizing and mitigating biased decision-making.
A cognitive bias where individuals favor others who are perceived to be similar to themselves, affecting judgments and decision-making. Crucial for understanding biases in team dynamics and decision-making processes among designers.
A behavioral economics model that explains decision-making as a conflict between a present-oriented "doer" and a future-oriented "planner". Useful for understanding user decision-making and designing interventions that balance short-term and long-term goals.
Anchoring (also known as Focalism) is a cognitive bias where individuals rely heavily on the first piece of information (the "anchor") when making decisions. Crucial for understanding and mitigating initial information's impact on user decision-making processes.
The use of behavioral science insights to inform and guide strategic decision-making in organizations. Crucial for developing strategies that effectively influence behavior and drive business success.