Behavioral Biases in Marketing

51 Pages Posted: 27 Dec 2017 Last revised: 1 Aug 2019

See all articles by Katharina Dowling

Katharina Dowling

Ludwig Maximilian University of Munich (LMU) - Faculty of Business Administration (Munich School of Management)

Daniel Guhl

Humboldt University of Berlin - School of Business and Economics

Daniel Klapper

Humboldt University Berlin - School of Business and Economics

Martin Spann

Ludwig Maximilian University of Munich (LMU) - Faculty of Business Administration (Munich School of Management)

Lucas Stich

Ludwig Maximilian University of Munich (LMU) - Faculty of Business Administration (Munich School of Management)

Narine Yegoryan

Humboldt University of Berlin

Date Written: July 31, 2019

Abstract

Psychology and economics (together known as behavioral economics) are two prominent disciplines underlying many theories in marketing. The extensive marketing literature documents consumers’ nonrational behavior even though behavioral biases might not always be consistently termed or formally described. In this review, we identify and synthesize empirical research on behavioral biases in marketing. We document the key findings according to three classes of deviations (i.e., nonstandard preferences, nonstandard beliefs, and nonstandard decision-making) and the four phases of consumer purchase decision-making (i.e., need recognition, pre-purchase, purchase, and post-purchase). Our organizing framework allows us to (1) synthesize instructive marketing papers in a concise and meaningful manner and (2) identify connections and differences within and across categories in both dimensions. In our review, we discuss specific implications for management and avenues for future research.

Keywords: Marketing, Consumer Purchase Decision-Making, Behavioral Economics, Behavioral Biases, Review

JEL Classification: M31, D90

Suggested Citation

Dowling, Katharina and Guhl, Daniel and Klapper, Daniel and Spann, Martin and Stich, Lucas and Yegoryan, Narine, Behavioral Biases in Marketing (July 31, 2019). Available at SSRN: https://ssrn.com/abstract=3091557 or http://dx.doi.org/10.2139/ssrn.3091557

Katharina Dowling (Contact Author)

Ludwig Maximilian University of Munich (LMU) - Faculty of Business Administration (Munich School of Management) ( email )

Ludwigstr. 28
Munich, 80539
Germany

Daniel Guhl

Humboldt University of Berlin - School of Business and Economics ( email )

Spandauer Str. 1
Berlin, D-10099
Germany

Daniel Klapper

Humboldt University Berlin - School of Business and Economics ( email )

Spandauer Str.1
Berlin, Berlin 10178
Germany

Martin Spann

Ludwig Maximilian University of Munich (LMU) - Faculty of Business Administration (Munich School of Management) ( email )

Ludwigstr. 28
Munich, 80539
Germany

Lucas Stich

Ludwig Maximilian University of Munich (LMU) - Faculty of Business Administration (Munich School of Management) ( email )

Ludwigstr. 28
Munich, 80539
Germany

Narine Yegoryan

Humboldt University of Berlin ( email )

Spandauer Str. 1
Berlin, Berlin 10178
Germany

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