Escalation bias: does it extend to marketing?

Armstrong, J. Scott and Coviello, Nicole and Safranek, Barbara (1993): Escalation bias: does it extend to marketing? Published in: Journal of the Academy of Marketing Science No. 21 (1993): pp. 247-253.

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.

• Item Type: MPRA Paper
• Language: English
• Keywords: escalation bias, marketing
• Subjects: M - Business Administration and Business Economics ; Marketing ; Accounting ; Personnel Economics > M3 - Marketing and Advertising > M31 - Marketing

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