The anchoring bias falls into the Money category because of people’s tendency to only be able to make a judgement about a price of something in relation to the price of something else. The means model is split into six different sections: Money, Effort, Time, Risk, Individuality, and Conscious thought. It particularly affects decisions regarding numerical values like pricing, both value-based and cost-plus, since customers tend to decide on amounts skewed toward the anchor value. Which forms the basis of our Behavioural Model. Alternatively, you can counter-offer quickly to offset the anchoring effect of the buyer’s first offer. Anchoring effect is a form of cognitive bias that causes people to focus on the first available piece of information (the 'anchor') given to them when making decisions. For example, we can only judge numbers in comparison with other numbers and we’re inclined to not waste energy, so the easier something seems the more likely we are to choose it (like joining the queue). They use price comparison to present brands with a higher price first. With aisles and aisles of brands to choose from it’s no surprise that for brands like ALDI, anchoring is a go-to behavioural bias for cutting through the competition. If everyone else is doing one thing, we’d rather join the queue and spend time, than feel like the odd one out.īut our judgement of these things is often flawed. The anchoring bias is commonplace in supermarket advertising. If we don’t want to take a risk, we’ll invest more thought. So if we’re short of time, we’ll spend money. Examples of Anchoring Bias in the Workplace. And some of the results could actually change your life. But there are many ways that we are affected by pieces of anchored information in our minds. In theory, the means depend on what’s in short supply. Pricing and predictions are the two most common examples of the anchoring effect. This isn’t just money – choosing and buying also costs time and effort, thought and worry. 6 Anchoring Bias Examples That Impact Your Decisions 1. One example is the effect of the anchor’s relevance to the case to be decided: It remains a much understudied topic (Glöckner & Englich, 2015 Hans et al., 2018 and Reyna et al., 2015 seem to be the only studies in the field to directly manipulate this variable), whereas the present study clearly indicates it has an impact on the effect size. The means are the resources to get what you want. You have a 20 chance of winning 20, versus, you have an 80 chance of losing 5.

The three core principles of our Behavioural Model is that every behaviour has to have a motivation, trigger and the means. Below are some examples of different types of framing effects. Where it fits in our behavioural model – The ‘means’ METRIC

The anchoring effect examples