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18 Cognitive Bias Examples Show Why Mental Mistakes Get Made

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18 Cognitive Bias Examples Show Why Mental Mistakes Get Made

18 Cognitive Bias Examples

View the high resolution version of today’s graphic by clicking here.

Out of the 188 cognitive biases that exist, there is a much narrower group of biases that has a disproportionately large effect on the ways we do business.

These are things that affect workplace culture, budget estimates, deal outcomes, and our perceived return on investments within the company.

Mental mistakes such as these can add up quickly, and can hamper any organization in reaching its full bottom line potential.

Cognitive Bias Examples

Today’s infographic from Raconteur aptly highlights 18 different cognitive bias examples that can create particularly difficult challenges for company decision-making.

The list includes biases that fall into categories such as financial, social, short term-ism, and failure to estimate:

Financial biases
These are imprecise mental shortcuts we make with numbers, such as hyperbolic discounting – the mistake of preferring a smaller, sooner payoff instead of a larger, later reward. Another classic financial cognitive bias example is the “Ostrich effect”, which is where one sticks their head in the sand, pretending that negative financial information simply doesn’t exist.

Social biases
Social biases can have a big impact on teams and company culture. For example, teams can bandwagon (when people do something because other people are doing it), and individual team members can engage in blind spot bias (viewing oneself as less biased than others). These both can lead to worse decision-making.

Short Term-isms
One way to ensure a business that doesn’t last? Engage in short term-isms – fallacies that gear your business towards decisions that can be rationalized now, but that don’t add any long-term value. Status quo bias and anchoring are two ways this can happen.

Failure to Estimate
So much about business relies on making projections about the future, and the biases in this category make it difficult to make accurate estimates. Cognitive bias examples here include the availability heuristic (just because information is available, means it must be true), and the gambler’s fallacy (future probabilities are altered by past events).

Want more on cognitive biases? Here are five main biases that impact investors, specifically.

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Misc

Charted: Car Brand Loyalty in 2024

This ranking of car brand loyalty shows what percentage of owners would buy from the same brand for their next vehicle.

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Car Brand Loyalty in 2024

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

This graphic visualizes the best and worst car brands in terms of brand loyalty. This is measured by the % of current owners who would buy from the same brand for their next vehicle.

Data comes from Consumer Reports’ owner satisfaction survey, which includes responses from owners of more than 330,000 vehicles.

Car Brands With the Most Loyal Customers

Rivian takes the top spot in this ranking, with 86% of owners saying they would buy from the brand again. The EV startup has carved an interesting niche for itself with its outdoor adventure-focused models, and despite several recalls, appears to have won the hearts of its early customers.

Company% who would buy again
🇺🇸 Rivian86
🇩🇪 Mini77
🇩🇪 BMW76
🇩🇪 Porsche76
🇺🇸 Tesla74
🇰🇷 Genesis73
🇯🇵 Lexus73
🇯🇵 Subaru70

It’s interesting to note that Tesla held the #1 spot in last year’s ranking.

Car Brands With the Least Loyal Customers

At the other end of the spectrum we have brands with the least loyal customers, suggesting that owners are less satisfied with their purchase.

Company% who would buy again
🇺🇸 Cadillac61
🇺🇸 Chrysler60
🇩🇪 Mercedes-Benz59
🇩🇪 Audi59
🇺🇸 Jeep58
🇯🇵 Nissan55
🇩🇪 Volkswagen51
🇯🇵 Infiniti43

At the bottom of this table is Nissan’s luxury marque, Infiniti, with only 43% of owners saying they would revisit the brand for their next car.

Infiniti dealerships are aware of this alarming trend, and have attributed it to the brand’s aging lineup. In a recent interview, Steve Lapin, Chairman of the Infiniti National Dealer Advisory Board, said: “Product is king. Infiniti doesn’t have the right products right now to compete in the marketplace.”

Interested in learning more about the automotive industry? Check out this graphic, which ranks the world’s top 10 exporters of automotive products.

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