Subadditivity Effect
A cognitive bias where the total probability assigned to a set of events is less than the sum of the probabilities assigned to each event individually.
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Naive Allocation
A heuristic where individuals evenly distribute resources across all options, regardless of their specific needs or potential.
Depth of Processing
A theory suggesting that information processed at a deeper, more meaningful level is better remembered than information processed at a shallow level.
Regulatory Focus Theory
A theory that describes how individuals pursue goals using either a promotion focus (seeking gains) or a prevention focus (avoiding losses).
Incumbent
An established company or market leader that holds a significant market share and has a strong presence in the industry.
Myopic Loss Aversion
A cognitive bias where individuals tend to avoid risks when they perceive potential losses more acutely than potential gains.
Regret Aversion
A tendency to avoid making decisions that might lead to regret, influencing risk-taking and decision-making behaviors.
Voice and Tone
The style and attitude of the communication in a product, reflecting the brand's personality and affecting how messages are perceived by users.
Denomination Effect
A cognitive bias where people are less likely to spend large denominations of money compared to an equivalent amount in smaller denominations.