Anchored and Adrift: Why We Buy What We Don’t Really Want
How a hidden bias hijacks everyday decisions — and what smart marketers can do about it.
“If you don’t set the anchor, your competitor will.”
Have you ever walked into a store planning to spend $50 — and left thinking you got a deal by spending $200? You didn’t change your budget. You got anchored.
Anchoring bias is one of consumer psychology's most powerful — and invisible — forces. It doesn’t just nudge our decisions; it frames them. From how much we’re willing to pay for a new phone to which gym membership we choose, our brains constantly look for reference points. And marketers, intentionally or not, are happy to provide them.
But here’s the twist: when marketers anchor pricing before they anchor positioning, customers often buy things they don’t want — or don’t understand — and ultimately blame the brand.
Marketers must learn to set the proper anchors in order to build loyalty.
What Is Anchoring Bias?
Anchoring bias is the tendency to rely too heavily on the first piece of information we encounter — the “anchor” — when making decisions.
Psychologists Amos Tversky and Daniel Kahneman famously demonstrated this. In one study, participants spun a wheel of fortune that landed on a number. Then they guessed what percentage of African countries are in the UN. Despite rigging the wheel, their answers were heavily influenced by the number they just saw.
Even irrelevant information can warp our judgment. In marketing, the anchor is often a price, a label, or a “limited-time” offer—and it shapes what follows.
Anchoring in the Wild: How Consumers Get Hooked
Let’s explore how this plays out in everyday life:
🛍️ Retail Pricing: “Was $499, Now $299”
That $299 price might’ve been the plan, but the $499 “anchor” creates perceived value. It turns a purchase into a deal, even without a real discount.
Luxury brands flip the script: Anchoring higher creates exclusivity. A $299 handbag feels affordable next to a $2,000 model—even if both are manufactured similarly.
🍷 Menu Design: The $200 Steak That’s Not Meant to Sell
Restaurants use expensive “decoy” items to make other options look more reasonable. That $200 steak isn’t expected to move — it’s there to reframe the $85 ribeye as a smart, moderate choice.
Anchors shape perception, not just price. The “value” option now feels like a win.
🚗 Real Estate & Car Sales: First Seen, Forever Compared
The first house or car a buyer sees becomes the baseline. Every home or vehicle after is unconsciously compared to that one — regardless of whether it was a good fit.
Smart sellers know this. They control what you see first to shape your expectations.
📦 Subscription Pricing: The “Best Value” Bundle
You’ve seen this before:
Basic: $9/month
Pro: $19/month
Ultimate: $49/month
That $49 plan isn’t there to sell — it’s the anchor. It makes $19 feel like the sweet spot. Add a “Best Value” badge, and customers feel smart for choosing it.
When Positioning Fails, Anchoring Fails Harder
“Misplaced anchors lead to misplaced expectations.”
Here’s the trap: marketers jump to price without establishing what the product is.
A customer sees a $500 gadget and thinks, “That’s expensive.” But expensive compared to what? If they don’t understand the product category — is it premium? Advanced? Niche? — then any price can seem arbitrary or unfair.
Customers walk away not because the price was wrong, but because the positioning was unclear. That’s when brands lose sales or disappoint customers who expected something different.
What Smart Marketers Should Do
Anchoring bias is real. But it’s not about trickery — it’s about clarity. Here's how to use it well:
1. Lead with Positioning
Don’t discuss price before you’ve framed value. Is your product a premium solution or an entry-level option? Make that clear first.
2. Control the Comparison Set
Don’t let customers guess. Use strategic product displays, decoys, and bundles to frame their evaluation.
3. Use Decoys and Tiers
Add higher-end offerings that reframe your target as a wise middle-ground choice.
4. Test Your Anchors
Use A/B tests to understand which numbers, product orders, and layouts shape perception best. Anchoring works beforelogic kicks in — so follow the data.
Final Thought: Anchor with Intention
Anchoring bias isn’t going away. It’s part of how people think. The question is whether marketers use it accidentally — or strategically.
The best marketers don’t just close deals. They build clarity, trust, and alignment between what’s promised and what’s delivered. And it all starts with the right anchor.
If you don’t set it, someone else will or you might think you can read their minds. Or that could be a story you are telling yourself.