We like to hold on to things.

Anchoring is critical for the way we evaluate prices. We value a certain offer not by rational detailed analysis, but with a quick estimation based on the information available at that given moment. In other words: the first price we consciously realize will set the basic reference frame against which all future price tags (from this market segment) are measured at. It serves as an „anchor“ that aids future price evaluation. A positive anchor for „lifestyle coffee“ allows to go for a much higher price tag than the anchor „pick-me-up-quick coffee“ at your local garage… And by the way: the basic premises humans use for anchoring do not necessarily have to bear any objective significance to the set of circumstances (or the price tag) we are evaluating.

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