Definition
The tendency to persuade oneself through rational argument that a purchase was good value.
Classification reasoning
The effects of post-purchase rationalization is felt once a decision for a purchase has been made and has been acted upon. The purchase is justified irrespective of whether it was good or bad.
Example
Purchase of third-party solutions: Companies often spend large amounts of money in purchasing readymade solutions from third parties. This is especially true in cases when the required skill set is lacking within the organization.
Impact
Following the purchase of such solutions, the post-purchase rationalization effect would result in the continued application of the selected technology even in cases when it could be a poor choice. The point of realization might come a bit too late until the point of a resounding failure. It would then require vast efforts in large scale migrations from the old technology to a new one. Post-purchase rationalization also makes it harder to learn from new alternatives down the line.
Debiasing techniques
If using third party solutions, ensure that support is being provided for a long term along with regular updates. Set checkpoints to regularly verify if the existing solution caters to existing requirements as well as new ones.
Related biases
- Choice-supportive bias (The tendency to remember one's choices as better than they actually were).