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How Bias is built into marketing & affects your choices - YouTube
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hey clever viewers think you're not
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biased perfect because you've just shown
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signs of blind spot bias or the ability
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to recognize bias in others more easily
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than
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in ourselves but don't be upset biases
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get a bad rep but in reality
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it's evolutionary we all have them it's
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wired into
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our brains and brands use that to inform
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your
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buying decisions recognizing these
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cognitive biases make it easier to
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ensure your own decision making and at
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least identify what's driving the folks
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you see
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making questionable decisions
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let's start with anchoring bias because
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well it's based on being over reliant on
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the first piece of information that we
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hear you're flooded with millions of
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pieces of information
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daily so our brain ranks what is most
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important to store it to memory
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these shortcuts cut down recall times
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but aren't always objective because it's
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based on your life experience
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this is how companies decide on pricing
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since they know the first price you see
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usually sets your expectations brands
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who aren't first to market will usually
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discount based on an
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understood price ever see signs like
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limit 12 items per customer
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it's not just there for bargain hunters
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in a study done by wansink
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kent and hope when this sign was placed
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near a display of campbell's soup cans
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sales rose 112 from an average of 3.3
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cans per purchase to 7 cans
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why because the brain anchored to the
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number 12 and began
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adjusting from there this also
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highlights the bandwagon effect which
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any sports fan will undoubtedly tell you
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about the idea is that
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the more an idea or trend has been
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adopted by others the more likely you
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are
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to agree groupthink is built into us as
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herd animals and helps to explain why
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nerds line up for days to get iphones
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just like the last one or why reddit
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wall street bets bros
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have been able to compete with finance
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bros on wall street
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you don't have to take it from me let's
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hear testimonials from these random
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people you don't know
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4 out of 5 viewers agree that this
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channel is worth
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subscribing to studies may vary but we
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sure would appreciate your support
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we all want positive outcomes which is
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why in marketing we focus more on the
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outcomes than the decision making itself
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that's outcome bias do you need an
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electric toothbrush that guides you via
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app for 130
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you may not think so but just think
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about what parts of your mouth you
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didn't know were being missed
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or how white your smile could be on that
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big date see what i did there
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we tend to overestimate the importance
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of whatever information we have
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available
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over new information this is because our
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brain has created
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easy pathways to that info this is
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called availability heuristic
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if you can quickly recall several points
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of information you're more likely to
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believe it's right
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if you see multiple stories about home
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invasions you're more likely to believe
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the risk is higher than it is this is
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how algorithms on social media work to
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sell products
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if you click on one product or story
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that you like the algorithms are
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built to serve you more and more of the
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same product and keep you on the
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platform to sell more advertising those
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social media rabbit holes are great at
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feeding us more of what we like but that
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can lead to unintended consequences
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as we start to see more of what we like
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online
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we tend to only seek out information
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that confirms things we already believed
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called confirmation bias we inherently
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seek and remember information that
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confirms our existing ideas
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let's say you were offered a selection
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of products and made a decision on one
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after you hand over the dough there is a
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need to feel like it was money well
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spent
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so we'll seek out reviews and
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information confirming
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and justifying our purchase because
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nobody wants to feel
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like they made a bad choice that's why
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it's so
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hard to change people's mind on things
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like climate change
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politics or even their own health not
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necessarily because of the information
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because we as humans don't really like
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to admit that we're wrong
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this can lead to our tendency to see
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patterns in random events
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called clustering illusion literally the
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key to any casino you've ever been to is
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trying to get you to feel patterns that
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aren't there
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if you're sitting at a roulette table
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and red came up three times in a row
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you're more likely to believe that the
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next thing that come up
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is red even though the 47.4
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odds have not changed at all this is
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true with banking products too we'll
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base whole financial portfolios on
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predicting the rise of a stock or the
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last housing market crash
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and can look out for random patterns
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that affirm our already made decisions
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in 2008 sports bettors of euro football
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were
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all in on an octopus named paul who used
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flags to predict germany's matches
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until the euro 2008 final when paul
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incorrectly picked germany over spain
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who ended up winning
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with tens of millions in bad bets german
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fans were calling for paul
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to be eaten live and paul was actually
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put into protection
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by the spanish prime minister for the
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2010 world cup where to his credit
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he perfectly predicted seven matches
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thing is octopuses
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are almost certainly colorblind see the
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pattern here our tendency
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is to focus on the most easily
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recognizable features of a concept
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which is what leads us astray the more
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something stands out the more we
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irrationally focus on it which is called
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salience
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advertising photography constantly uses
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images where one element stands out that
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we recognize to help it be noticed
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and remembered this also plays into
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nostalgia in a world of advertising
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you're more
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likely to spot notice and buy the
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product if it features a cartoon or film
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character you were fond of as a child
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i'm not saying i regret my darth vader
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toaster i'm just saying
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it could toast a little more evenly hey
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there's risk in everything
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which again is something we as humans do
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not like
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sociologists have studied for years why
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humans love
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certainty even if it's counterproductive
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to what we want there are not many
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situations in which harm or risk
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can be completely eliminated but we tend
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to in our heads
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create zero risk biases that lead us to
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the right products
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for example we're more frustrated losing
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ten dollars than we would be happy
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finding ten dollars that's how coupons
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work
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give someone a zero risk coupon that
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gets them 10
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off a purchase and they feel like they
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own that saving but try to take it away
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from them with an expiry date and that
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gets them in the store
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so they don't risk losing their savings
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same idea with a
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no risk free trial if they spent time
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using the product they don't want to
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give it up
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which is how we ended up with so many
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subscriptions to
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wait a second what is this a netflix for
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jelly
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when did i sign up for that you might be
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enticed to sign up for a course to keep
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your finances straight
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but there are so many to choose from how
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do you pick survivorship bias could help
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this is misjudging things by only
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focusing on surviving examples
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this guy turned 10k into 100k in just
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three
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easy steps and i can do it too all i
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have to do is ignore the hundreds of
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thousands of other entrepreneurs that
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literally bought into this course and
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got literally nothing out of it and
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folded after a year because it was too
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basic
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didn't provide me with any fundamental
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entrepreneurial marketing skills
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if this schlub can do it i can for 19 a
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month i'll try it out it's the same
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reason you think you can smoke or eat
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bacon every day because old harry over
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there is 85 years old cram in a pack a
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day of both and look how good he turned
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out
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which leads us to stereotyping likely
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the most widely known bias
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and honestly it could be its own video
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we expect groups of people to have
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certain traits without knowing
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anything about the individual marketing
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leans into these cultural assumptions
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both overtly and covertly which has had
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widespread effects on how we see each
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other
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it's important to not tokenize or
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demonize others because as the saying
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goes you never really know a person
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until you walk a mile in their shoes
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okay well maybe you can assume a bit if
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it's these shoes
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taking the time to open ourselves up to
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ideas and cultures can help us learn
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a lot about our own world view it can
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help us break our biases and take stock
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of how much we actually share
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as people the point is that many biases
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affect our decisions every day
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and instead of shouting bandwagon
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slogans at each other it's important to
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understand what is leading folks to make
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their decisions
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and be aware of our own biases it's not
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about winning arguments but making sure
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people
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are able to make informed decisions so
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listen to them where they are with
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empathy give them the information they
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need
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and check in with yourself use your
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dollars wisely to support
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positive messages and above all let's
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just take care of each other
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thanks a lot folks this one was really
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important for us and we spent a lot of
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time really thinking about how to frame
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this out so
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hopefully you got something out of it
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and stay tuned for more from sponsored
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thoughts make sure you like and
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subscribe that really helps us out
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