Economics Anchoring Questions
Anchoring in the context of consumer decision making refers to the tendency of individuals to rely heavily on the first piece of information they receive when making judgments or decisions. This initial piece of information, known as the anchor, serves as a reference point that influences subsequent evaluations and choices. Consumers often use the anchor as a mental shortcut to make decisions, even if the anchor is arbitrary or irrelevant to the decision at hand. This cognitive bias can lead to biased judgments and decisions, as individuals may fail to adequately adjust their evaluations based on new or more relevant information.