#THE ANCHORING EFFECT EXAMPLES PRO#

The first option the client sees is going to be the price that anchors in their mind.Here are a few options if you want to apply the anchoring effect to how you price your products or services. So ultimately, $15 seems like a bargain, even if you need the $8 package.

#THE ANCHORING EFFECT EXAMPLES PRO#

Then start with the pro package price, which is significantly more expensive than the next available option.Įven if you’d never need the pro package, by seeing this price first, all other packages are suddenly perceived in relation to the higher price, rather than to other more comparable packages. The customer chooses a package that can differ from others depending on the time of billing period and features provided.įor example, you can showcase subscriptions for your product in the pro package on the same page as your starter package. So, anchoring that a 20 oz Coke is worth $1.69, 32 oz for $1.99 suddenly seems like a great deal even when both are overpriced.Īnother example can be pricing pages. So, for 30 cents, you’ll have almost twice as much Coke. Here is a video presenting the anchoring effect:įor example, the sign says you can get a 20 oz Coke for $1.69 or a 32oz Coke for $1.99. The same thing happened in the other group. Hence, their partial computations brought them to a bigger starting point, which they became anchored to. The group given the descending sequence initially worked with larger figures. (The correct answer is 40,320.) The researchers argued that the gap was caused by students doing partial computations in their heads before attempting to adjust these values to arrive at a solution. The average estimate for the first equation was 2,250, while the average estimate for the second one was 512. In five seconds, the students were asked to estimate the outcome:Īnother group was given the same equation, but reversed: To corroborate their account of the anchoring effect, Tversky and Kahneman conducted research in which high school students attempted to solve mathematical equations in a very brief amount of time. “That is, different starting points yield different estimates, which are biased toward the initial values.” In either case, adjustments are typically insufficient.” In their paper, they explain, “People make estimates by starting from an initial value that is adjusted to yield the final answer.”Ĭontinuing, “The initial value, or starting point, may be suggested by the formulation of the problem, or it may be the result of a partial computation. This phenomenon is another one observed and described by Daniel Kahnemann and Amos Tversky.

The anchoring effect examples