Distinction Bias

Distinction Bias

Reflection Time

What did you do when you went shopping for a big, new TV that fitted your requirement and budget pretty well but ended up comparing it with other high end TVs that were costlier/ slightly costlier than the one you had earlier selected for buying ?

What did you do when you went to buy a smartphone that matched the specifications you needed but ended up considering the other costlier smartphone with better features ?

What did you do when you had two offers for job - one that matched the profile and salary that you  wanted and the other one which had an entirely different profile but the offering a 10-15 percent hike in salary ?

I believe, in all the above mentioned instances, for most of the time we ended up buying the costlier product,  even when there was no marked difference in what we went looking for and we could have safely opted for our earlier choice. Now, the real food for thought here is - why did we end up buying the costlier option instead of the one that matched my need pretty well ? Well, the answer is that we ended up taking decision under the influence of bias known as "Distinction Bias" and instead of "best fit", got lost in the "problem of plenty" !

Definition 

Distinction Bias is the tendency to over-value the effect of small quantitative differences while comparing options. This means that when we compare similar options/ choices, we often place a higher emphasis on inconsequential quantitative differences and pick an option that won't actually maximise our level of happiness/ satisfaction. 

Just Consider that on day you went out to buy some fresh fruits and just when you were about to select, say a set of fresh apples, the fruit seller presented you with another set of apples which just had an additional "international quality" sticker on it. Both the set of apples were fresh and similar but still you ended up buying the set with sticker on it because of the assumption that it would turn out to be better than the one you had selected earlier. Now, this is a scenario where "distinction bias" came into play and affected your judgement.

Likewise, there are plenty of instances which we may be able to recall from our daily routine where "distinction bias" affected our ability to make the best decision. 

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Identifying the Occurence of the Bias

The best indicator is being hypersensitive to the smallest/ minor differences among the options presented to us. Another indicator is when we start placing too much qualitative value on small differences (between two similar options) that by itself have little value  

Why & How Distinction Bias Occurs ?

Humans are bad at predicting how quantitative differences affect happiness and we tend to place a higher emphasis on inconsequential quantitative differences that doesn't actually maximise our happiness. 

"Distinction Bias" occurs when we extrapolate the quantitative differences between two options in a

direct comparison. The moment we start placing the options together to compare the differences is when distinction bias starts creeping in our judgement and decision making.

The concept of "Distinction Bias" was introduced by Hsee and Zhang (2004) in a research paper in the Journal of Personality and Social Psychology to explain why people evaluate objects differently when evaluating them jointly, as opposed to separately.

To further elaborate on the concept, let's understand the 2 modes that humans operate in. They are:  

1. Comparison Mode - comes into play when choosing and makes us sensitive to small differences between options
2. Experience Mode - comes into play when living our decision and when there are no options to compare our experience to

So, when in comparison mode, we are making choices through Joint Evaluation (JE) where we place the options together and note their differences. On the other hand, when in experience mode, our actual experience is happening through Single Evaluation (SE), which refers to the option that matches our requirement completely.

When Joint Evaluation (JE) preferences get imposed on Single Evaluation (SE), that's when the distinction bias happens and this shift in perspective between evaluation and experience(use) creates the disconnect.

Impact of Distinction Bias

• When Distinction Bias happens, it causes us to shift our focus away from the issue to be addressed/ problem to be solved and instead focus on evaluating the minute differences of the  options presented to us.
• Builds in us a tendency to over predict the value and happiness that a choice can bring
• Can lead to "analysis paralysis" where we lose the ability to analyse things properly 
• Undermine our ability to make best decision

Real-Life Occurence of Distinction Bias 

The Distinction Bias occurs, both at an individual level and an institutional level. Mentioned below are few examples of their occurrence

• Distinction Bias occurs regularly during our shopping experience and marketers exploit this tendency of ours to their advantage.
• During many of our life-changing decisions, like choosing a job offer and even choosing a life partner
• Vendor selection where we tend to pitch them against each other to outdo each others' offering 

Overcoming/Addressing Distinction Bias

Few simple ways to address this bias are

• Stop comparing and stop playing "spot the difference". Instead focus on giving weightage and priority to each option at the singular level
• Get out requirements and needs in place first and then stick to it all through the process of decision making
• Practice the concept of "Satisficing", which refers to a course of action meant to satisfy the minimum requirements necessary for achieving a goal.
• "Hedonic Adaptation", where we can curb our urge for achieving more pleasure through a so called better lifestyle.

Let the "problem of plenty" not undermine the value and happiness that a singular could bring !