anchoring effect

Anchoring is a well-known trick marketers use to convince people to buy. 
But we can use it on ourselves to make better decisions. Here’s how. 

What is anchoring?

Anchoring is a cognitive bias where our perceptions change based on what we see something compared to — the anchor point.

Marketers often anchor prices e.g.

• $10 book or $99 course (expensive)
• $1000 workshop or $99 online course (bargain!)

So how can we use it?

Create your own anchors to combat marketers

Whenever you see an item with an anchor, write down alternative options to create new anchors. Why?

Writing forces us to slow down and really consider the points. It puts a blocker on those impulsive thoughts and activates our slower thinking systems.

Plus by adding a new anchor you can pull yourself in another direction.

So now instead of the limited options the marketers wants to present you with, you have a whole new set.

Make better decision by anchoring your options.

So next time you see an offer compared with one other option, stop.

Write down alternative options at different price points, ease of access, time required, etc. Then consider what you could do with the time, money, or hassle you’d save taking another option.

Maybe the time that more expensive option would save you is of great benefit for you, but maybe you could use the money you’d say for another purchase that would benefit you even more.

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