Barron's Marketing Dictionary:

cognitive dissonance

In general: psychological theory of human behavior. The theory suggests that conflicts between
behavior and beliefs create a sense of discomfort, or cognitive dissonance, that the individual
subconsciously attempts to eliminate by modifying his or her beliefs. For example, a man who believes
in nonviolence may strike someone in anger. The theory states that the man will either modify his
beliefs about nonviolence to justify the violent behavior or will believe his action to be something other
than violence. He may convince himself that he was acting out of instinct or self-protection rather than
a desire to inflict harm, or that the provocation was so extreme that even a nonviolent person like
himself would have no choice but to respond. Individuals often seek reassurance from external
sources that their behavior is not in conflict with their beliefs. Nazi war criminals defended their
actions to themselves and others by claiming they were "only following orders" and were not
responsible for behavior that was in conflict with social mores.

Advertising: theory that a consumer may use a particular product because he or she believes the
advertising for that product, which claims that the product is the most effective of its kind in the job
that it does. The consumer may then see a competitor's advertisement that seems to prove
conclusively that this competitive product is better. This creates dissonance. The consumer must now
relieve the uncomfortable feeling that the dissonance brings about and will often do so by switching
products. The theory acts as a double-edged sword, though, because while advertisers want to create
dissonance for nonusers of their product, they do not want to create it for those who do use their
product.

Cognitive dissonance most often occurs after the purchase of an expensive item such as an
automobile. A consumer who is experiencing cognitive dissonance after his or her purchase may
attempt to return the product or may seek positive information about it to justify the choice. If the
buyer is unable to justify the purchase, he or she will also be less likely to purchase that brand again.
An advertiser of high-priced durable goods has said that half of their advertising is done to reassure
consumers that in purchasing their product the right choice was made.

Barron's Banking Dictionary:

Cognitive Dissonance

In general: psychological theory of human behavior. The theory suggests that human beings justify their behavior by
changing their beliefs when these beliefs are inconsistent with behavior. For example, a man who says he does not believe
in violence punches a salesperson. This juxtaposition of belief and action creates dissonance (conflict). The theory says
that he will change his belief in nonviolence to justify his behavior.

Marketing (buyer's remorse): theory that a consumer may use a particular product because he or she believes the
advertising for that product, which claims that the product is the most effective of its kind in the job that it does. The
consumer may then see a competitor's advertisement that seems to prove conclusively that this competitive product is
better. This creates dissonance. The consumer must now relieve the uncomfortable feeling that the dissonance brings
about and will often do so by switching products. Even though advertisers want to create dissonance for nonusers of their
product, they do not want to create it for those who do use their product.

Cognitive dissonance most often occurs after the purchase of an expensive item such as an automobile. A consumer who is
experiencing cognitive dissonance after his or her purchase may attempt to return the product or may seek positive
information about it to justify the choice. If the buyer is unable to justify the purchase, he or she will also be less likely to
purchase that brand again.