Costly mistake: why do we respond to fake discounts and how to fix it
'24.05.2021'
Source: Life hacker
This thinking error can cost you dearly. Let us explain why most of us are “led” to fake discounts and buy what we don't really need - and even for a lot of money.
We subconsciously cling to the first information
Imagine this situation. You want to buy a car and begin to negotiate with the seller about the price. The first amount he will name will set the tone for all negotiations. Compared with it, a slightly reduced price will seem reasonable, even if initially it was very high. This happens because we see the benefits of a proposal only in comparison with others, writes Life hacker.
The same mechanism applies to sales.
If yesterday the product cost 1 000 dollars, and today - 500, it seems to us that this is a great investment.
Although in reality it does not say anything about its real value. Just the first figure seen sets expectations.
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And it prevents us from thinking objectively
The anchor effect, or the effect of the anchor, is a shift in the perception of numerical indicators. It happens when we try to roughly calculate or estimate a certain number. At the same time, we cling to the figure that we heard first, and form an opinion based on it. She becomes an anchor, which does not allow us to go far from the starting point. An example of such a binding is the first bid when buying a car.
As soon as the value of the anchor is indicated, all future estimates and assumptions are adjusted to it. Psychologists Amos Tversky and Daniel Kahneman demonstrated this in an experiment with multiplication. They asked one group of participants to guess what the product of numbers from eight to one would be: 8 × 7 × 6 × 5 × 4 × 3 × 2 × 1, and the other the same numbers in reverse order: 1 × 2 × 3 × 4 × 5 × 6 × 7 × 8. Participants from the second group called a much smaller figure, because they saw at the beginning of the sequence a unit, a deuce and a triple. They became the anchor.
But this effect is not limited to abstract examples. Marketers and store owners are well aware of it.
The effect of the anchor even affects the decisions of experienced judges. The researchers conducted an experiment in which they asked participants to pronounce a sentence in a fictitious criminal case. One was offered as punishment nine months of conditional imprisonment, while others - three months.
The judges who saw the larger number handed down a harsher sentence. In the second experiment, after studying the materials of the servants, Themis was asked to throw dice. Those with a larger number were given a longer sentence.
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This error of thinking can be fought
Unfortunately, the effect of the anchor is very difficult to avoid, even knowing about it. In one study, participants were offered money if they could make more accurate judgments, but that didn't help.
Try not to forget that the initial number affects expectations.
Especially when you agree on a salary, consider a purchase, or make a deal. Be wary of people who take advantage of this effect. Check if the discount is really as good as it seems at first glance.
Keep in mind that mood also affects decisions. We are more likely to cling to the anchor when we are sad. So think twice before shopping in an upset state.
