Anchoring: A Powerful Principle That Shapes the Decisions People Subsequently MakeDownload Now
Anchoring describes the human tendency to rely too heavily on the first piece of information they receive. Learn to use it in business in your favor.
What you will learn
Do you know why the first option on the wine menu is the most expensive one? Well, it’s a smart thing to do. Once your mind is exposed to a higher price, anything in comparison to that will seem economical (even though it really might not be.) And the result? Happy customers who think they’ve made a good decision and saved some bucks.
This principle, known as anchoring, describes the human tendency to rely too heavily on the first piece of information they receive. When you’re given an anchor, you subconsciously start asking yourself, how much more or less can it be from the number you were given?
So, think about all the times when you’ve made decisions based on anchoring – maybe the time when you decided to buy the lower model of iPhone and thought it was a smart purchase.
Well, don’t worry or feel silly – as you read further we’ll tell you how even experts fall prey to this principle.
You’ll discover how to use the principle of anchoring not only to earn profits but also to improve the overall experience of your customer.
With mind-boggling examples from Starbucks to iPhone, we’ll teach you how these world-famous companies have innovatively use anchoring in their everyday pricing. And since we’re already doing the job of revealing their secrets, we will also provide you with tips on how not to fall for these deceptive tricks.