Escalation bias: Does it extend to marketing?
- Cite this article as:
- Armstrong, J.S., Coviello, N. & Safranek, B. JAMS (1993) 21: 247. doi:10.1177/0092070393213008
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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.