Final answer:
The perception of out-group members as similar is known as the outgroup homogeneity effect. This effect, along with confirmation bias, can foster stereotypes and discrimination. Recognizing these biases is key to promoting inclusivity.
Step-by-step explanation:
The process described, where people perceive members of an out-group as more similar to each other than they actually are while seeing members of the in-group as distinct individuals, is known as the outgroup homogeneity effect. This cognitive bias can lead to stereotyping and discrimination because the distinctiveness of individuals within the out-group is not recognized. Such categorization into in-groups and out-groups can also have consequences on group dynamics, leading to in-group bias where one prefers their own group over others. This contributes to social disparities and prejudice phenomena like racism, sexism, and other forms of discrimination.
In addition to the outgroup homogeneity effect, confirmation bias plays a role by leading individuals to notice and remember information that confirms their stereotypes and ignore information that contradicts their existing beliefs. Understanding and acknowledging these biases is crucial in order to foster inclusive social environments and break the cycle of prejudice and self-fulfilling prophecies.