BIAS OF THE WEEK

Zero Risk Bias

The money back guarantee seduces consumers by eliminating the risk of not liking the purchase. 

Retailers who offer this options see a boost in sales and profit.

We tend to opt for situations where we can completely eliminate risk over alternatives that may actually offer greater risk reduction. 

See the full study here :

Akçay, Y., Boyacı, T., & Zhang, D. (2013). Selling with money‐back guarantees: The impact on prices, quantities, and retail profitability. Production and Operations Management22(4), 777-791.https://doi.org/10.1111/j.1937-5956.2012.01394.x

Want to know more about biases?

Authority Bias

Cashless Effect

Pareidolia

Hindsight Bias