What is the anchor in your category?
Anchoring, the effect that our brain uses to make quick decisions. We use one piece of information as an anchor to base our decision on and estimate how far we need to move away from this anchor. Most often we use this heuristic with numbers. Almost all marketers are using this old but very effective technique, even the master of marketing…
Everybody depends on anchoring, yes, you too
We all depend on anchoring every day to predict the outcome of events, to estimate how much time something will take or how much money something will cost. When we need to choose between options, or estimate a value, we need footing to stand on. How much should we be paying for cable? How much should our electricity bill be each month? What is a good price for rent in this neighborhood? We need an anchor from which to compare, and when someone is trying to sell you something they are more than happy to provide one. The problem is, even when we know this, you can’t ignore it.
Successfully using anchoring
Almost all marketers are using this old but very effective technique, even the master of marketing…
Watch the video about the anchoring effect here.