Publication type
Journal articleAuthor
De Langhe, BartPublication Year
2016Journal
Journal of Marketing BehaviorPublication Volume
2Publication Issue
2-3Publication Begin page
101Publication End page
127
Metadata
Show full item recordAbstract
Business decisions are increasingly based on data and statistical analyses. Managerial intuition plays an important role at various stages of the analytics process. It is thus important to understand how managers intuitively think about data and statistics. This article reviews a wide range of empirical results from almost a century of research on intuitive statistics. The results support four key insights: (1) Variance is not intuitive; (2) Perfect correlation is the intuitive reference point; (3) People conflate correlation with slope; and (4) Nonlinear functions and interaction effects are not intuitive. These insights have implications for the development, implementation, and evaluation of statistical models in marketing and beyond. I provide several such examples and offer suggestions for future research.Keyword
Behavioral Decision Making, Marketing Research, Marketing Decisions Models, Financial markets: Anomalies and Behavioral Finance, Financial Markets: Portfolio TheoryKnowledge Domain/Industry
Marketing & SalesCollections
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