Anchoring Effect and People’s Behaviour Decision Making: A Case Study

Abstract

Many people may not have a systematic understanding of the anchoring effect theory, but they are often dominated by this behavior. The anchoring effect is widely used in economic and consumer decision-making behavior, and people often use it unconsciously or consciously, and it is seriously affected in judgment. This paper intends to conduct a comprehensive and systematic study on the anchoring effect to find out how the anchoring effect works in people's lives, in corporate pricing, and in marketing. This article adopts literature analysis method and case analysis method. Firstly, through the literature review, the development and theoretical framework of the anchoring effect are systematically sorted out. Secondly, this paper selects typical cases such as life consumption, corporate behavior, and company marketing to analyze how companies use anchoring effects to achieve their goals, and how consumers are affected by them. This paper finds that the anchoring effect is a common cognitive bias. If companies can make good use of this theory for pricing, publicity, and marketing, they will receive unexpected success. For individuals, they should take the initiative to avoid being affected by the anchoring effect and stick to their own ideas. This paper hopes that through this research, readers can have a clearer understanding of the principle of anchoring effect, and consumers can improve their ability to identify anchoring marketing. This paper also hopes that through this research, readers can have a clearer understanding of the principle of anchoring effect. Enterprises can moderately use this theory to promote products, and corporate consumers can improve their ability to identify anchor marketing.