Explain the concept of anchoring in the context of market research.

Explain the concept of anchoring in the context of market research.

Anchoring in the context of market research refers to the cognitive bias where individuals rely heavily on the first piece of information they receive when making decisions or judgments. This initial piece of information, known as the anchor, serves as a reference point that influences subsequent evaluations or estimations. Anchoring can impact consumer behavior and market outcomes as it can shape perceptions of value, pricing, and willingness to pay.