The effects of anchoring, price order and reduced price on consumer decision-making
No Thumbnail Available
BA (Hons) in Psychology
Dublin Business School
Items in Esource are protected by copyright. Previously published items are made available in accordance with the copyright policy of the publisher/copyright holder.
This study explored whether anchoring and reduced price would influence consumers’ decision-making in real world and online scenarios. In Study 1, participants partook in a true experiment where they blind tasted several wines and made a subsequent hypothetically purchase. Participants were assigned to four groups under two conditions: low anchor, high anchor, low anchor reduced, high anchor reduced. Statistical analyses of the mean price hypothetically purchased showed no significant difference between the groups. In Study 2, participants read tasting descriptions of the same wines in an online survey and made a subsequent hypothetically purchase. Participants were assigned to groups identical to Study 1. Statistical analyses of the mean price hypothetically purchased showed a significant difference between the high anchor and low anchor group, and low anchor reduced group. Results indicated anchoring occurred when participants made decisions under uncertainty but not with product knowledge. Reduced price did not significantly influence decisions. Authors Keywords: anchoring, reduced price, decision-making, consumer behaviour.