Well, have you ever heard of the anchor point ? Just like an anchor which being used as a stationery point, we use it as a comparison between one thing to another 🙂
Let’s start off with an example to make things clearer. Usually, when people ordering from a menu in a fancy restaurant, they tend to compare the highest price there is to the food they want, as a result, the second highest price food tend to become the most ordered food in that restaurant. Why do we do that ? it’s because that we don’t have any idea what is the normal range of price in the fancy restaurant, so in order to get a grasp of some idea in it, we tend to go to the highest price available and set it as our anchor point 😀
Using that trick to get our anchor point is actually a great fault because if we consider it carefully, why would we choose the highest price as the anchor point ? Why not take the lowest price in that menu and compare it with the others.
Another example that we have at hand is about selling used cars. The seller often will try to show you the worst used car avaible in his/her store. After showing you that dumb wrecked car, they will try to show you another car which is far more better than before. As a result, we tend to use the image of that dumb wrecked car as an anchor point to compare it to the current car that we are seeing right now. Psychologically, we are far more easier to be ruled in and purchase the car that we are seeing currently.
We need to be more aware of what’s the right information that is being fed to us. Because the information that was given may be the wrong anchor point information and things can go so wrong if you think about it.
This kind is part of something that you can call as economic behavioural. They try to set us up with some anchor point because we have no idea and information of the current situation that we are dealing with. Well, that’s it for now. Hope this information is useful for anyone who reads it 😀