Why Does the Anchoring Effect Work?

It's a psychological trick that makes your brain go, "Oh, that's just normal."

Imagine you're at a car dealership, and the salesperson is trying to sell you a new car. They say, "This car is normally priced at $50,000."

But then they throw in a "special deal" and say, "We're offering it to you for just $20,000!" Sounds like a steal, right?

That's the anchoring effect in action. Your brain is anchoring on the original price of $50,000 and thinking, "Wow, that's a great deal!"

But here's the thing: the original price was never really the "normal" price to begin with. It was just made up to manipulate you into thinking you're getting a good deal.

The anchoring effect is like a magic trick. You're not really sure how it works, but it makes you feel like you're getting a great deal. And who doesn't love a good deal?

So, the next time you're at a car dealership, just remember: the anchoring effect is like a magic trick. Don't fall for it!

See some real-life examples of the anchoring effect in action