Final answer:
Selective retention, or confirmation bias, is the tendency to seek out and interpret information that supports one's existing beliefs. It impacts how individuals consume news, make decisions, and process information by maintaining a coherent worldview, though it can lead to biased decision-making.
Step-by-step explanation:
When a consumer interprets information in a way that supports her own beliefs, she is exemplifying a concept known as selective retention. This cognitive process is more commonly referred to as confirmation bias. This bias is the tendency to search for, interpret, favor, and recall information in a way that confirms one's preexisting beliefs or hypotheses. It is a type of cognitive bias that plays a crucial role in how we process information and make decisions. An example of confirmation bias could be in the context of consuming news. When a person scans headlines and selects only the stories that align with their existing views, they are actively engaging in confirmation bias.
This bias can also manifest when people give more weight to information that upholds their existing beliefs and dismisses evidence that contradicts them. For instance, when faced with a complex decision, individuals might focus on specific details that reinforce their beliefs rather than viewing the situation objectively. Confirmation bias serves an important function by creating a sense of coherence and continuity in our understanding of the world. It enables us to quickly process information by relying on our established knowledge. However, it can also lead to motivated reasoning, where we embrace ideas we want to believe and reject conflicting evidence. This can result in skewed decision-making and a lack of openness to new information. Understanding confirmation bias is crucial for developing critical thinking skills and making more informed decisions.