How does lying about financial statistics relate to psychology? I have this so far:
People feel the need to tell the truth, not just because it’s the right thing to do, but also for more realistic reasons, such as the consequences for their actions. Businesses, however, will go the extra mile to make you buy their products and make as much money as possible. Leonard Saxe, a polygraph expert and professor of psychology at Brandeis University, says, "Lying has long been a part of everyday life. We couldn't get through the day without being deceptive."
There are many tricks of the mind businesses use to convince their buyers that they are the high class and official. A technique used by many businesses is "the illusion of precision." By using decimals, for example, can make a number seem more convincing. Instead of writing that you beat the index by 2 per cent, put it as 2.35 per cent. This may be true; however a business may be convincing you to believe they are very precise and hard working. There are many other percentage schemes, such as “We have expanded our team of financial analysts by 50 per cent over the last year," This is impressive, but, if it means that instead of only one full-time person, you also have someone coming in during the mornings, the reality isn’t as exciting.
does anyone have anything to add or believe something I said doesn't make sense?
Your explanation is a good start! Here are a few additional points you could consider:
1. Cognitive biases: Businesses may exploit certain cognitive biases in human psychology to manipulate financial statistics and deceive people. For example, they might use anchoring bias by providing a high initial price for a product and then offering a discount, making it seem like a great deal. By understanding how people perceive and process information, businesses can strategically present financial data to influence consumer behavior.
2. Perception of credibility: When businesses present financial statistics in a precise and detailed manner, it can create an illusion of expertise and reliability. People generally associate specific numbers and precise figures with accuracy, even if those numbers are arbitrary or manipulated. This perception of credibility can influence people's decision-making processes and lead them to trust the company more.
3. Ethical implications: Lying about financial statistics can have significant ethical ramifications. It can erode trust between businesses and consumers, lead to financial fraud and mismanagement, and harm individuals and society as a whole. It also raises questions about the moral responsibility of businesses to provide accurate and transparent information to stakeholders.
Furthermore, you could explore the psychological motivations behind why individuals or businesses lie about financial statistics, such as the desire for personal or organizational gain, fear of negative consequences, or the need to maintain a certain image or reputation. By delving into these motivations, you can provide a more comprehensive understanding of the psychological aspects involved in lying about financial statistics.