![]() e-Commerce sites don't filter on price, but rather on popularity or relevance. The first product is always of a really high price compared to the average to anchor you. Open your favorite shopping store and go check the new in section. This is how online shopping websites make you shop more. You can also show your "recommended" products first instead of the cheapest options on your product listing page. Remember that the first or primary information that has the greatest impact upon a person's subsequent decisions. ![]() If your homepage is the most common point of entry for your customers, putting one of your more expensive products on the home page will anchor the rest of your collection. ![]() The reader will then justify the price using the feel as the anchor. What about speed? WiFi? Interactivity? Battery time? Charging cables? Accessories? Strength? Pixels? Resolution? Camera? Memory? Not a word. You know that the feeling of the device has nothing to do with its performance. Was this a successful strategy by Apple? 100%. Instead, the copy and visuals focused on how the iPad will 'feel' in your hand.ĭoes the feeling of a tech product really impact its performance? Not at all. There was no mention of the features or tech specifications until the very end of the page. They're focusing on the feel of a $400 device. Look at how they marketed the iPad when it launched.Īnd it's genius. Apple anchoring effectĪpple does a great job at marketing. Did you think, "this is a great deal"? If that's the case, I'm sorry to tell you, but you've fallen for the anchoring effect. Have you ever bought something, just because it was on sale? With items on sale you compare the original price and the discounted sale price. Examples of the anchoring effect in marketing The influencer is often biased since this person got the product either for free or is getting paid to promote something. If you really trust this influencer you'll tell others that the product/brand is pretty good instead of doing extensive research about the product. When there is an influencer who tests a certain product and does a positive review, all people who see the review are being "anchored" without them being aware of this. Influencers are paid by brands to advertise. We use these "anchors" as reference points to make our decisions instead of thinking rationally and objectively to make the best decision overall. Judgments are made once the anchor is set by using it as a point of reference. It occurs when you use an initial piece of information in order to make subsequent judgments. The Anchoring effect can also occur in other situations than pricing. ![]() The anchoring rule states that when we're uncertain about the correct answer we take a guess using the most recent number we've heard as a starting/reference point. Various studies have shown that it's challenging to avoid factoring it into decisions, even when subjects are informed about the irrelevancy of the anchor. One of their main questions was "how do people form judgements when they are unsure of the facts?". Kahneman and Tversky have done a lot of groundbreaking studies about decision making, specifically around risk management and uncertainty of people. But what if you would have started with an offer, that becomes the anchoring and you're more likely to pay less than when the anchoring effect is played the other way around. They start with a very high price so you give the product/service a higher value for yourself, you probably will end somewhere in the middle. It's something that's used by salespeople a lot. This cognitive bias, the Anchoring effect, is often related to pricing. Multiple Unit Pricing vs Single Unit Pricing SaaS (Software as a Service) anchoring effectġ. Table of contents:Įxamples of the anchoring effect in marketing When you see the 'sales' price being $20 your head will convince you that you're getting a lot of value for your money. You're more eager to buy it now, since that's one hack of deal right? You're using the initial $40 as your point of reference to determine the perceived value of the product. You come across a nice bottle which is $20,- would you buy it? Now imagine it's an offer, normally it would be $40,. How this works? Here's an Anchoring example, let's say you want to buy a nice bottle of red wine online. The Anchoring effect is a cognitive bias that causes people to rely too much/too heavily on the first piece of information they've received as a point of reference.
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