What is Distinction Bias?
A Distinction bias – is a tendency to over-value the effect of small quantitative differences when comparing options. Let us understand this through an example;
Scenario 1: You are offered an apple to eat, let us call it APPLE 1. It seems fresh and you decide to eat it and are happy.
Scenario 2: Say you are offered two apples to eat, one is an apple exactly similar to APPLE 1 (from the first Scenario) and the second apple is slightly fresher looking. You choose to eat the second apple here. Though in the alternate, no-choice reality, you were perfectly happy with APPLE 1.
Humans tend to compare within the options. The level of satisfaction is reduced every time we see something new in the market. May that be a small chocolate, or large TV set! We keep on comparing them all for a better option to have for.
This also affects our spending habits – we tend to spend more on things we believe are better, though, there is no qualitative difference. To tackle such kind of dicey decision-making skills, we share 3 ways to protect from the distinction bias:
‘Spot the difference’, is not always rewarding. It’s a common trick marketers use to create more confusion while choosing from multiple options. Evaluate each element individually, as in the case of purchasing a house. Rather than looking at the shiny things like gym, swimming pool and any other facilities; you should focus more on the accessibility to the nearest school, hospital and your office location.
While shopping, we must have often encountered a Sales person who, tends to push a product. The person is simply taking an advantage of your Distinction bias. And at times even if the features of the products are way out of the box as compared to your requirement, you end up purchasing it. Beware of such not-so-useful purchases you make!
A smart thing to do is list down the shopping list of your requirement, rather than splurging on the things which you don’t need it.
Hedonism is the theory which states that, a person always acts in such a way so to seek pleasure and avoid pain. A hedonic change basically propagates a change in your lifestyle – it’s not quick fix.
Hence, start working towards it little by little. Analyse the resources you have in hand and strive to find satisfaction in them. There will always be a thing which is better than what you have. Rather than cribbing about it, adapt to it and stay positive.