The anchoring effect1/7/2024 However, when they removed the print-only option, the majority of people chose the web-only subscription. Given these options in a study, no subjects chose the print-only subscription, which was the clearly inferior option, and a majority chose the dual print and web subscription. This can hinder the customer's ability to find a fair and reasonable price.Īn example of this is an advertisement run by the magazine The Economist, which offered three subscription options: a web-only subscription, which cost $59 a print-only subscription, which cost $125 or both web and print, which also cost $125. The customer will then be much more willing to make the purchase than they would have been if the product had been marked with the lower sale price originally. However, when the vendor then advertises the lower sale price (which may be the price they had actually intended to sell the product for), the original higher price serves as an anchor, making the new sale price seem like a much better deal. Setting a price too high might normally deter a potential customer from making a purchase. Similar to framing effect, how the anchor value is presented can influence a customer's buying decision.Īnchoring effect is often taken advantage of in sales situations to set prices for products. It particularly affects decisions regarding numerical values like pricing, both value-based and cost-plus, since customers tend to decide on amounts skewed toward the anchor value. Anchoring effect is a form of cognitive bias that causes people to focus on the first available piece of information (the "anchor") given to them when making decisions.
0 Comments
Leave a Reply.AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |