Journal of the Academy of Marketing Science

, Volume 21, Issue 3, pp 247–253

Escalation bias: Does it extend to marketing?

  • J. Scott Armstrong
  • Nicole Coviello
  • Barbara Safranek
Research Note

DOI: 10.1177/0092070393213008

Cite this article as:
Armstrong, J.S., Coviello, N. & Safranek, B. JAMS (1993) 21: 247. doi:10.1177/0092070393213008

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.

Copyright information

© Academy of Marketing Science 1993

Authors and Affiliations

  • J. Scott Armstrong
    • 1
  • Nicole Coviello
    • 2
  • Barbara Safranek
    • 3
  1. 1.University of PennsylvaniaUSA
  2. 2.the University of AucklandNew Zealand
  3. 3.S.G. Warburg and Co.USA

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