Cognitive dissonance: Definition, examples & application in marketing

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Introduction
Cognitive dissonance, a term introduced in the 1950s, describes the uneasy feeling that arises when a person is confronted with conflicting beliefs or behaviors. This mental tension can unconsciously lead to choices and actions that are not always rational. In this article, we dive deeper into this phenomenon, discuss examples and explain how SME entrepreneurs can use this knowledge to make better decisions.

What is cognitive dissonance?
Humans have an inner need to ensure that our beliefs are consistent (Festinger, 1957).

We strive for consistency between our attitudes and behaviors. We want to be consistent in our opinions, perceptions and behaviors to avoid dissonance (contradiction). A situation with overtly opposing opinions or behaviors can cause stress and discomfort. This inconsistency produces an uncomfortable, psychological tension: cognitive dissonance.


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Examples in practice
Every time you are faced with a decision, there is a possibility of cognitive dissonance. Sometimes you don't even realize it, but sometimes you do. You can feel cognitive dissonance at all sorts of times, here are some examples from a business context:

Investment in failing projects: A manager has invested a changsha mobile numbers list lot of money in a particular project or new technology. Despite clear signals that the project will not succeed, the manager continues to invest in it because admitting that it was a bad investment would lead to a sense of dissonance. Continue reading Sunk Cost Fallacy.
Changing corporate cultures: Suppose a company that has always valued a traditional hierarchical structure suddenly decides to change to a flatter organizational structure. Older employees accustomed to the traditional way may feel uncomfortable with this change, trying to justify their previous beliefs even if the new system is better.
Product choices and brand loyalty: An entrepreneur has chosen a particular supplier or brand for many years because of personal relationships or beliefs. When presented with evidence that another brand is objectively better or cheaper, the entrepreneur may ignore or rationalize this to avoid the uncomfortable feeling of dissonance.
Hiring and firing: A manager has hired someone they were convinced was perfect for the position. However, when this person underperforms, the manager may ignore or justify these shortcomings because admitting they made a mistake in hiring would cause dissonance.
Strategic changes: When a company embarks on a strategic direction based on the belief that it is the right path, and is later confronted with market information that suggests otherwise, there may be a resistance to change course. Admitting that the original direction was wrong can be a source of dissonance for executives.