While the “imprinting behavior” is found in animals belonging to the class Aves which they would follow the first large moving object that they meet, the Anchoring effect describing the phenomenon in which clients' subsequent decisions are heavily dependent on the products' initial information offered, is found in Human beings.
One can say that by offering clients an initial piece of information, they will unconsciously stick to it and form deductive reasoning based on the available information, hence make predictable judgments just exactly like how the marketing strategists have anticipated.
PRACTICAL APPLICATION
Let's take a simple illustration, two agencies put cloth bags up for sale with the same model of a distributor along with the same purchase and retail price and special offers
Agency A: “... your total bill is 150 000 VND for a cloth bag and a freeship service on Black Friday”
Agency B: “your total bill is 180 000 VND (including 150 000 VND for the product and 30 000 VND for the transportation cost) however, on this Black Friday, our company will provide you with freeship service so you only have to pay 150 000 VND!
(Source: blog.printerous.com)
From such illustration, you probably see the distinctions though hard to see directly affect the decision of clients in which they would come back or not, especially when agency A failed to make a comparison between the before-and-after price leading to the limitation of collecting data. What is the reason for the difference in freeship service between two agencies, is the reduction matter?
Meanwhile, agency B successfully utilized the number 180 000 as the anchor to orient the clients' decisions, especially when it makes clients' be fully emerged in being “a winner" to get a freeship service of about ⅙ in total.
SUMMARY
Despite being a common marketing ploy, "The Anchoring Effect" remains, in essence, an everyday phenomenon exploited by advertisers to manipulate consumer behavior through inundating amounts of confusing information.
After all, the phenomenon stems from a very human tendency to absorb new information and to apply more of themselves to what suits their interests. Therefore, the impacts themselves will be more or less dependent on both backgrounds and the "anchoring technique". In the next part, API will show you some nice tricks to gain a higher chance of success in "dropping anchor" as well as point out main common mistakes needing refinement to bring the most fruitful accomplishment.
See you in the next post, stay tuned!
See the full post via this link.
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Credits for API's Team:
Content: (in Vietnamese) Van Thanh.
Translation: (in English) Huyen Dieu.
Cover photo: Tri Dung.
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