For instance, when faced with the choice of buying product A, originally priced at Rs.800 and now available at Rs.500, and another similar product B, that is priced at Rs.500 and available at Rs.500, most buyers are likely to buy the former. The thought process is that something worth Rs.800 is available at a discount so it must be a good deal. A critical thinker probably will look at it the other way round, thinking that if Product A is good why is it quoting at a discount? So why are most people likely to opt for product A? Predominantly due to what is known as “Anchoring Bias”. Anchoring bias normally occurs when people rely on pre-existing or the first information they find when making decisions.
This story is from the November 2020 edition of Investors India.
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This story is from the November 2020 edition of Investors India.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
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