Escalation bias: Does it extend to marketing?
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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.
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- Escalation bias: Does it extend to marketing?
Journal of the Academy of Marketing Science
Volume 21, Issue 3 , pp 247-253
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