An examination of relationship between cognitive biases and customer satisfaction: empirical evidence from Thailand

Abstract

PurposeThis study aims to determine the effect of cognitive biases, that is, anchoring effect, illusion of control, and endowment effect, on customer satisfaction.Design/methodology/approachAn experimental design was applied using 524 undergraduate students as participants. A three-way ANOVA was employed for data analysis.FindingsPositive relationships were found between cognitive biases and customer satisfaction. However, no such relationships were found between the interactions of various types of cognitive bias and customer satisfaction, except the interaction between illusion of control and endowment effect.Research limitations/implicationsThis study focuses only on three types of cognitive biases; thus, it cannot be generalized to other such systematic patterns.Practical implicationsMarketers can introduce cognitive bias when implementing marketing campaigns to boost customer satisfaction.Originality/valueThis study expands the knowledge boundary by addressing the impact of the interaction between various aspects of cognitive bias that drive customer satisfaction.