Why we are fooled by phony discounts and how to fix it

We subconsciously cling to the first information

Imagine this situation. You want to buy a car and start negotiating a price with the seller. The first amount he names will set the tone for all negotiations. Compared to it, the slightly reduced price seems reasonable, even if it was initially greatly overpriced. This is because we see the benefits of a particular offer only in comparison to others.

The same mechanism works in sales.

If yesterday the product cost 1,000 rubles, and today - 500, it seems to us that this is an excellent investment.

Although in fact this does not say anything about its real value. It's just that the first figure you see sets expectations.

And it prevents us from thinking objectively

Anchoring effect, or anchoring effect, is a bias in the perception of numbers. It happens when we try to roughly calculate or estimate a number. At the same time, we cling to the number that we heard first, and form an opinion based on it. It becomes an anchor that does not allow us to go far from the starting point. An example of such a link is the first bid when buying a car.

Once the value of the anchor is indicated, all future estimates and assumptions are adjusted to it. Psychologists Amos Tversky and Daniel Kahneman demonstrated this in a multiplication experiment. They asked one group of participants to guess what the product of numbers from eight to one would be: 8 × 7 × 6 × 5 × 4 × 3 × 2 × 1, and another group of the same numbers in reverse order: 1 × 2 × 3 × 4 × 5 × 6 × 7 × 8. Participants in the second group named a much smaller number because they saw one, two and three at the beginning of the sequence. They became the anchor.

But this effect is not limited to abstract examples. It is well known to marketers and store owners.

Anchors like these have been proven to affect the number of items purchased at grocery stores. As part of the experiment, advertisements were hung at the end of the shelves. One said, "Bars: Buy 18 and store in the freezer." On the other, "Bars: Buy and Store in the Freezer." Seeing the number 18, people bought more bars. In another case, on a shelf with cans of ready-made soup, they wrote: "No more than 12 cans per hand." And people bought more again.

The anchor effect even influences the decisions of experienced judges. Researchers conducted an experiment in which they asked participants to issue a verdict in a fictitious criminal case. One was offered as a punishment nine months of suspended imprisonment, others - three months.

The judges who saw the larger number passed the harsher sentence. In the second experiment, after studying the materials, the servants of Themis were asked to roll dice. Those who got the highest number were assigned a longer punishment.

This mistake of thinking can be fought

Unfortunately, the anchor effect is very difficult to avoid, even knowing about it. In one study, participants were offered money if they were able to make more accurate judgments, but this did not help.

Try to remember that the starting number affects expectations.

Especially when negotiating a salary, contemplating a purchase, or making a deal. Be wary of people who use this effect to their advantage. Check if the discount is really as good as it seems at first glance.

Keep in mind that mood also influences decisions. We are more likely to cling to an anchor when we are sad. So think twice before shopping in a frustrated state.