Probably a million different factors setting the costs on your services and products in your eCommerce website. Obviously that is a gross exaggeration, though the number presented has you thinking already, doesn’t it? Simply because “anchoring bias”, the place that the first number the truth is could be the one you judge everybody else against while picking a choice unless, obviously, the quantity shown isn’t plausible. It’s your responsibility to make a decision if a million is plausible.
Why Anchoring Bias Affects eCommerce sale and price
You are certainly welcome to put whatever price you decide on on your own products, however that doesn’t mean buyers can pay. The truth is, you undoubtedly have zero say whatsoever about the actual value. In regards right down to it, the value is what buyers can pay. In case your prices are excessive, buyers will let you know by walking away. At this stage, reducing your price won’t assist you to. The first number presented will be the one in which consumer will judge any other number. When the first is too much that need considering realistic, any following numbers is likewise considered unrealistic.
The identical can also be said for any product at a cost tag that seems too good to be true. A decreased, good deal might lead buyers to perceive the merchandise as cheap. Efforts to customize the price later on will only convince consumers that you are attempting to widen your margins on a product that probably isn’t worth owning.
Anchoring bias in decision-making
During normal decision making, individuals anchor, or overly rely, on specific information or a specific value and then adjust to that value to account for other elements of the circumstance.
Usually once the anchor is set, there is a bias toward that value.
Take, for example, a person looking to buy a used car – they may focus excessively on the odometer reading and the year of the car, and use those criteria as a basis for evaluating the value of the car, rather than considering how well the engine or the transmission is maintained.
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