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Escalation Bias: Does It Extend to Marketing?

Armstrong, J. Scott and Coviello, Nicole and Safranek, Barbara (1993) Escalation Bias: Does It Extend to Marketing? [Journal (Paginated)]

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Abstract

Escalation bias implies that managers favor reinvestments in projects that are doing poorly over those doing well. We tested this implication in a marketing context by conducting experiments on advertising and product-design decisions. Each situation was varied to reflect either a long-term or a short-term decision. Besides these four conditions, we conducted three replications. We found little evidence of escalation bias by 365 subjects in the seven experimental comparisons.

Item Type:Journal (Paginated)
Subjects:Psychology > Behavioral Analysis
ID Code:5183
Deposited By:Armstrong, J. Scott
Deposited On:25 Sep 2006
Last Modified:11 Mar 2011 08:56

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