Psychological Anchoring: Price is an Illusion

Imagine you buy a sweater on sale for 70 euros, with a crossed-out price of 200 euros. You feel like you're getting a great deal, don't you? However, your judgment is not based on the intrinsic value of the sweater, but on the initial price of 200 euros, which acts as a reference point. This phenomenon is the anchoring effect, a powerful mechanism of buying psychology that makes us judge the value of something based on the first piece of information received, even if it is completely arbitrary. The reference price is not just a number; it is an anchor that influences our entire price perception afterward. Understanding this bias is key to no longer being manipulated by price marketing strategies.

The Power of the First Value

The anchoring bias works because our brain seeks a starting point to evaluate information. The first value we see, even if it is no longer relevant, becomes the anchor to which we compare all other values. This is why brands always display a high original price on promotions. They anchor our perception of the product's value to that high price, making the sale price much more attractive. We no longer ask ourselves if the sweater is worth 70 euros, but if we want to take advantage of a 130 euro saving. What was originally a base price for a product becomes a tempting offer. This process is a true illusion, where price is used not to sell, but to influence our judgment.

Anchoring at the Heart of Price Marketing

The anchoring effect is a pillar of price marketing. Brands use it in various ways. For example, on subscription sales pages, the most expensive plan is often highlighted first. Even if most users won't choose it, it serves as an anchor so that the intermediate and lower plans seem much more reasonable and affordable in comparison. Restaurant menus do the same thing by offering a very expensive dish at the top of the menu, so that the other dishes appear to have a fairer price. The goal is not to sell the most expensive option, but to anchor our judgment and manipulate our price perception for the rest of the menu.

How to Avoid Being Trapped?

To protect yourself from the anchoring bias, it is crucial to ignore the first value you are given and evaluate products on their own merit. The next time you see a promotion, don't look at the crossed-out price. Focus on the price you will actually pay and ask yourself if the product is worth that price, regardless of any discount. Research the price of the same product from other sellers. By focusing on real value and not on an arbitrary reference price, you regain control of your decision-making and make a more informed choice, based on your needs and your budget. This is the key to avoiding the trap of buying psychology.

Come back daily for more content on the psychology of web design and its hidden principles for marketing. Next, we will explore the impact of the endowment effect and how the simple act of owning something gives it value.