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Wouldn't anchoring be damaging in this case, you anchor some number and by having to pay more by a lot, you feel the loss more acutely? It sounds to me more li
by mratsim 3y ago
Wouldn't anchoring be damaging in this case, you anchor some number and by having to pay more by a lot, you feel the loss more acutely?
It sounds to me more like the real estate agent trick of presenting a poor house, a luxury house and something in-between but with the best markup for the agent.
Also they get to say "starting from $XXXX" in marketing material to get foot in the door.
- izacus 3y agoYou're actually right that it works both ways - marketers sometimes anchor something with higher price (to make it seem more luxurious) and sometimes at lower price (to make it feel for people that they paid less than what they did). But the whole point of the effect is that it misleads your feelings around the value of the product and I guess it still works well since it's been used for century in marketing.