Marketing Blueprint - the Anchoring bias

This psychological phenomenon, introduced in 1974 by Amos Tversky and Daniel Kahneman in their paper "Judgment under Uncertainty: Heuristics and Biases," explains how the first piece of information we receive becomes a reference point—or "anchor"—that influences all subsequent decisions.

How Anchoring Bias Affects Your Choices

Anchoring Bias is everywhere, and it affects both consumers and business professionals. Here are two common examples:

• Pricing & Purchases: Imagine you’re shopping for a new jacket. The first one you see is priced at €500, way over your budget. Then, you find another for €250—it suddenly feels like a bargain, even though it’s still expensive. The initial high price anchored your perception of what’s "reasonable."
• Negotiations & Business Decisions: In negotiations, the first offer sets the stage. If a seller starts with a high price, every counteroffer seems more reasonable, even if it’s still above market value. Similarly, when pitching a project to management, starting with a small proposal can make a larger investment seem more acceptable later on.

How to Use Anchoring Bias to Your Advantage

Understanding Anchoring Bias allows you to take control of first impressions—whether in sales, pricing strategies, or internal negotiations:

• Set the Right Anchor: The first number or idea you introduce in a conversation will shape expectations. If you're selling a premium product, lead with a high-value offering before presenting lower-priced options.
• Frame Comparisons Wisely: When positioning a product or proposal, make sure the first reference point is strategic—one that highlights the value of what follows.
• Be Aware of Your Own Biases: When making important decisions, ask yourself: Am I being influenced by an arbitrary anchor? Challenge initial numbers or assumptions before committing.

Final Thoughts

Anchoring Bias isn’t just a marketing trick—it’s a powerful cognitive bias that shapes the way we perceive value, negotiate deals, and make decisions. Whether you’re a marketer, a salesperson, or a business leader, knowing how to use (and resist) anchoring can give you an edge.

Have you noticed this bias at play in your own decisions? Share your thoughts and join the conversation on LinkedIn!

Stay tuned for the next concept on Marketing Blueprint!

Julien Rio.