Choice heuristics — common mistakes

When discussing availability and representativeness, always refer back to the original work by Tversky and Kahneman. For top marks, clearly distinguish between the two: availability is about 'ease of recall', whereas representativeness is about 'matching to a prototype'. Use distinct consumer examples for each to demonstrate your understanding.

No, this is a common misconception. Heuristics are essential cognitive tools that allow us to make fast and efficient judgements in a complex world. They work well most of the time. However, they are not foolproof and can lead to systematic, predictable errors in judgement (cognitive biases), especially when marketers deliberately design stimuli to exploit them.

Not entirely. While recency is a major factor, the availability heuristic is about the overall 'ease of recall'. This can also be influenced by the vividness of the information (a dramatic plane crash is more memorable than car crash statistics), its emotional intensity, or personal experience. A single, highly emotional past experience with a product can make it more 'available' in your memory for years, influencing future choices.

While there is often a positive correlation between price and quality (better materials, research, and labour cost more), it is not a perfect or guaranteed relationship. The price-quality heuristic is a shortcut, not a law. Marketers can exploit this by using 'prestige pricing' to create an illusion of high quality for a standard product. Conversely, a high-quality item might be priced lower for competitive reasons. Relying solely on this heuristic can lead to poor value-for-money decisions.