Every day we have hundreds of choices to make, but our mental capacity is limited. The faster we can make a choice, the nicer it is for our brain. Cognitive shortcuts are essentially a protective mechanism of our body. It saves energy when we don't have to completely figure out how something is, but can fall back on something we already know, such as a stereotype. It also makes something new less exciting.
Learning something new takes a lot of time, and time is scarce. We couldn't even remember it all if we had to store information about each thing separately! So we categorize. Categorizing was already happening in the time of the Greeks. Grouping or categorizing things helps us get through the day and understand the world around us. The average of such a category is the stereotype or prototype (Tversky & Kahneman, 1981). Basing our opinion on this prototype creates the representativeness heuristic. We know a category, we encounter something from that category that resembles the prototype, and we intuitively make a decision based on our knowledge. Because there has to be a connection between that, right?
Examples in practice
If you see a bull running, then based on your knowledge indicatif belize about the category of bulls, you know that you had better stay away, because this bull is also likely to be dangerous.
If you see a product from an unknown brand listed that is very similar to a well-known brand, you will subconsciously think it has similar performance when you don't have more information available.
Dating sites: the first impression you have of someone is often based on stereotypes.
Using the representativeness heuristic to your advantage
But representational heuristics also present opportunities for savvy entrepreneurs. By understanding how people quickly draw conclusions, you can strategically shape your brand appearance, communication and pitch. From creating confidence-building presentations to profiling your team, this psychological knowledge can become your competitive advantage.
It starts with awareness. When you are aware that you are doing this, you are less likely to make snap judgments. You often then correct your original judgment (Gilovich & Savitsky, 1996).
Think carefully about the packaging and what image you want to project. A picture of fruit or vegetables on the packaging, for example, can give the impression that this product belongs in the healthy product category.
Get celebrities or influencers to recommend the product or service, to let the positive attributes of this person influence the image of the product and make consumers identify with the person. For example, an athlete can make it appear that a particular drink makes you fitter.
Create a corporate image that closely resembles successful, respected brands in your industry. Use similar color palettes, design elements and communication style that evoke associations with reliability and professionalism.
Resources
Gilovich, T., & Savitsky, K. (1996). "Like goes with like: The role of representativeness in erroneous and pseudoscientific beliefs." The Skeptical Inquirer, 20 (2), 34-30.
Tversky, A., & Kahneman, D. (1974). "Judgment under uncertainty: heuristics and biases." Science, 185(4157), 1124-1131.
Tversky, A., & Kahneman, D. (1981). "Judgments of and by representativeness." (No. TR-3). Stanford Univ Ca Dept of Psychology.