Distinction Bias

Imagine this. You are the CIO of a large bank and evaluating two leading CRM applications to implement in your bank. You have compared feature by feature of both the CRM applications and finally choose one as you believe it is more superior in quality, user interface etc. However, after implementing the CRM you are not so sure. You are not truly thrilled with your choice. Your satisfaction level is not what it is supposed to be. This happens with many of us, often. For example, when we compare the features of the car in the showroom with a similar model or the TV in the mall we see the superior features but when we use it standalone we are not able to see the features standout. Why does this happen?

Your decision to buy was influenced by comparing the dis-similar features with the other model. You may have taken a very different decision if you had seen each model separately! This is because evaluating the two models together brings out dissimilar features than when you are evaluating them separately.Behavioral scientists call this Distinction bias.

We make these kinds of decision all the time and often regret our decisions. For example, you may decide to change your job because it is not challenging enough. You get two job offers - one of N15 million and other of N18 million. You do a feature comparison and find that the N18 million is boring but better paying. The N15 million job will give you the challenge you were looking for.  Guess what?. You end up in the N18 million job! Few months down the line you regret your decision.

If you had just the N15 million job offer would you have taken it? Would you have been happy?

Imagine a different situation. You go to buy a shirt and see different shades. You finally pick two. You try each of them turn by turn – independently – and view yourself in front of the mirror in the changing room. You know exactly how you look in each of them and know precisely what to buy. What was the difference? Behavioral psychologists call them the “Single Evaluation” step. Experiments have shown that single evaluation steps are closer to your expectation and reality.

In case of the CIO, maybe if he had carried out the POC of the CRM on an individual basis, his choice could have been different and his satisfaction level much higher!