anchoring

[ˈæŋkərɪŋ]

anchoring Definition

the cognitive bias that describes the common human tendency to rely too heavily on the first piece of information offered (the 'anchor') when making decisions.

Using anchoring: Examples

Take a moment to familiarize yourself with how "anchoring" can be used in various situations through the following examples!

  • Example

    The salesperson used anchoring to influence the customer's perception of the product's value.

  • Example

    The negotiator set a high anchor price to start the bargaining process.

  • Example

    Anchoring can lead to inaccurate judgments and decisions.

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Summary: anchoring in Brief

'Anchoring' [ˈæŋkərɪŋ] is a cognitive bias where people rely too heavily on the first piece of information offered when making decisions. This can lead to inaccurate judgments and decisions. Examples of anchoring include a salesperson using a high initial price to influence a customer's perception of a product's value, or a negotiator setting a high anchor price to start the bargaining process.