The Anchoring Effect Concept - 820 Words

AnchÐ ¾ring Ð µffect is a humÐ °n tendÐ µncy tÐ ¾ rÐ µly on the Ð °lreÐ °dy knÐ ¾wn piÐ µcÐ µ of infÐ ¾rmÐ °tiÐ ¾n, pricÐ µ fÐ ¾r exÐ °mplÐ µ whilÐ µ mÐ °king diffÐ µrÐ µnt dÐ µcisiÐ ¾ns. During the prÐ ¾cÐ µss Ð ¾f dÐ µcisiÐ ¾n mÐ °king, pÐ µÃ ¾ple bÐ °se their decisions on the value that is already familiar to them, it is the highest estimation point and they simply adjust to all the other values or prices. In case the other prices are lower then the reference point of the person he or she would buy a product or service for sure. The Anchoring effect is a little trap for people it does make people feel smarter and more special. The Anchoring effect concept fits the topic really well, because it is based on the aleady known piece of information and it makes us as the customers to buy the products or services with the lower value, comparing to our highest estimation point the new prices seems like a good deal to us, we feel like we have got lucky, we are special and we are smarter than the other customers. For example a women goes to the shopping center to buy a new pair of shoes. She saw a very beautiful pair of shoes, she tried them on and she realized those are the shoes she was looking for. They are so pretty, so comfortable, they fit the new dress she have bought a week ago, but then she looks at the price tag and the price is 400 $. The women understands that this is very expensive for her and then suddenly salesman comes with the great news that those shoe are on 50 % sale right now, so they cost only 200 $. 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