Q: what is the population of Russia?
ANCHORS: population of world 7.5billion (must be less)…….population of china 2billion (must be less)………
Anchoring is when we use information that we already “know” to help us come up with a decision.
However, anchors don’t have to just be relevant to the topic they help determine. random anchors such as dice rolls can influence what we think may be reasonable.
The contrast idea can be applied to anything:
- Price anchoring – presenting an offer with a price to value ratio lower than the client wants to pay, this makes the subsequent cheap but high value offer seem reasonable.
- Real Estate – by showing a terrible home at a high pricepoint, agents can make the client more open to other properties that might be far more expensive but look far better. Aka the overpriced bad property justifies the high price of the good property.
- News – by presenting bad news first, a person’s perception of average news can be made far more postive