Escalation bias: does it extend to marketing?

J. Armstrong, Nicole Coviello and Barbara Safranek

MPRA Paper from University Library of Munich, Germany

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.

Keywords: escalation bias; marketing (search for similar items in EconPapers)
JEL-codes: M31 (search for similar items in EconPapers)
Date: 1993-06
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Citations: View citations in EconPapers (5)

Published in Journal of the Academy of Marketing Science 21 (1993): pp. 247-253

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:81685

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