How are you? All good?
Today we are going to talk about Anchoring Bias ⚓.
What is it?
People are over-reliant on the first piece of information they hear. It acts as an "anchor" for all the upcoming related data, which affects our judgement!
When you go for shopping, Offline or Online,
Let’s say, You find a T-shirt which costs $500 – then see a second one that costs $250 – there is a high chance that you’ll find the second shirt as cheaper.
Where does it occur?
The “Anchors” which as basically the reference points, are present everywhere. You will find this bias occuring in your daily life. Subconsiously, you have them in your mind and they get “activated” when you are making a decision or making choices.
Why do I need to know?
The power of this bias is very influential. You will find “anchors” in personal life choices as well as in making decisions in professional life.
It effects the choices we make. Anchoring Bias suggests that we favor the first bit of information, we register in our mind.
Next time you are buying something, You will be aware enough to identify it.
Do not totally rely on first piece of information about everything. A lot of times we don’t have enough data. Read why.
On the flip side, Anchor Bias can help you increase your sales. For example, Use it to your product’s advantage by creating a false pricing and then offering your users a discount.
For more information, Link to Wikipedia.