Keyword Definition Example

Perception A process by which Taste: We perceive taste

individuals organize and through our tongues. Our
interpret their sensory tongues detect different
impression in order to flavors and send signals
give meaning to their to our brains, which then
environment process those signals to
create a gustatory image
of the world.
Fundamental Attribution The tendency to You see a friend who is
Error underestimate the usually very friendly and
influence of external outgoing acting cold and
factors and overestimate distant. You might
the influence of internal assume that your friend is
factors when making mad at you, when in
judgments about the reality they might just be
behavior of others having a bad day.
Self-Serving Bias The tendency for Students who do well on
individuals to attribute a test may attribute their
their own successes to success to their own hard
internal factors while work and intelligence,
putting the blame for while students who do
failures on external poorly may attribute their
factors failure to bad luck or a
difficult teacher.
Selective Perception People selectively A company that believes
interpret what they see on that its product is
the basis of their superior to the
interests, background, competition may only
experience and attitudes focus on positive reviews
of their product and
ignore negative ones.
Contrast Effects Evaluation of a person’s When you eat an apple,
characteristics that are you will find it sweet, but
affected by comparisons when you eat a piece of
 with other people candy before eating the
recently encountered who apple, you will find that
rank higher or lower on the apple is no longer as
the same characteristics sweet even though the
sweetness of the apple
remains unchanged.

Overconfidence Bias Believing too much in A manager who believes

our own ability to make that they can lead their
good decisions – team to success, even
especially when outside though they have no
of own expertise experience in
management
Confirmation Bias Selecting and using only A person who is
facts that support our considering buying a new
decision car is more likely to
notice and remember
positive reviews of the
car they are interested in,
and to ignore or
downplay negative
reviews
Escalation of Increasing commitment A gambler continues to
Commitment to a decision in spite of bet money on a losing
evidence that it is wrong streak, even though they
– especially if know they will likely
responsible for the lose more money. They
decision are motivated by the
desire to regain their
losses because they have
spent so much time,
effort and money