Research Article

ANCHORING EFFECT: A MYTH OR REALITY?

Volume: 15 Number: 1 September 4, 2019
EN TR

ANCHORING EFFECT: A MYTH OR REALITY?

Abstract

Consumers are often irrational when making their purchase decisions. Anchoring effect is one of the most common cognitive biases resorted to by consumers in irrational behaviours.  Although there are many studies supporting anchoring effect in literature, there are studies against it too. This study amis to test the influence of anchoring effect on nine different products through a longtidunal stuy with non-student sampling and large numbers of data sets.




Data were collected from 2041 through a snowball and convenience sampling method between the years of 2016-2019. The results show that there is a significant relationship between number (anchor) determined by the participants and the price they are happy to pay. A one-unit increase in the anchor number  results an increase of 34% consumers are willing to pay for a product. The consumers who stated the numbers between 80-100 as anchors were willing to pay %178% more for a product than customers who stated numbers between 0-20 as anchors.




Keywords

References

  1. References
  2. Adame, B. J. (2016). Training in the mitigation of anchoring bias: A test of the consider-the-opposite strategy. Learning and Motivation, 53, 36-48.
  3. Anderson, S., Harrison, G. W., Lau, M. I., & Elisabet, R. E. (2007). Valuation using multiple price list formats. Applied Economics, 39(6), 675-682.
  4. Ariely, D., Loewenstein, G., & Prelec, D. (2003). Coherent arbitrariness: Stable demand curves without stable preferences. The Quarterly Journal of Economics, 118(1), 73-106.
  5. Averill, J. R. (1973). Personal control over aversive stimuli and its relationship to stress. Psychological bulletin, 80(4), 286-303.
  6. Bateman, T. S. (1980). Contingent concession strategies in dyadic bargaining. Organizational Behavior and Human Performance, 26(2), 212-221.
  7. Belsky, Gary and Thomas Gilovich (1999). Why Smart People Make Big Mistakes and How to Correct Them: Lessons From the New Science of Behavioral Economics, New York, NY: Fireside.
  8. Bergman, O., Ellingsen, T., Johannesson, M., & Svensson, C. (2010). Anchoring and cognitive ability. Economics Letters, 107(1), 66-68.

Details

Primary Language

English

Subjects

-

Journal Section

Research Article

Publication Date

September 4, 2019

Submission Date

May 22, 2019

Acceptance Date

June 30, 2019

Published in Issue

Year 2019 Volume: 15 Number: 1

APA
Boz, H. (2019). ANCHORING EFFECT: A MYTH OR REALITY? Ekonomik Ve Sosyal Araştırmalar Dergisi, 15(1), 33-47. https://izlik.org/JA79KG55AC
AMA
1.Boz H. ANCHORING EFFECT: A MYTH OR REALITY? ESAD. 2019;15(1):33-47. https://izlik.org/JA79KG55AC
Chicago
Boz, Hakan. 2019. “ANCHORING EFFECT: A MYTH OR REALITY?”. Ekonomik Ve Sosyal Araştırmalar Dergisi 15 (1): 33-47. https://izlik.org/JA79KG55AC.
EndNote
Boz H (September 1, 2019) ANCHORING EFFECT: A MYTH OR REALITY? Ekonomik ve Sosyal Araştırmalar Dergisi 15 1 33–47.
IEEE
[1]H. Boz, “ANCHORING EFFECT: A MYTH OR REALITY?”, ESAD, vol. 15, no. 1, pp. 33–47, Sept. 2019, [Online]. Available: https://izlik.org/JA79KG55AC
ISNAD
Boz, Hakan. “ANCHORING EFFECT: A MYTH OR REALITY?”. Ekonomik ve Sosyal Araştırmalar Dergisi 15/1 (September 1, 2019): 33-47. https://izlik.org/JA79KG55AC.
JAMA
1.Boz H. ANCHORING EFFECT: A MYTH OR REALITY? ESAD. 2019;15:33–47.
MLA
Boz, Hakan. “ANCHORING EFFECT: A MYTH OR REALITY?”. Ekonomik Ve Sosyal Araştırmalar Dergisi, vol. 15, no. 1, Sept. 2019, pp. 33-47, https://izlik.org/JA79KG55AC.
Vancouver
1.Hakan Boz. ANCHORING EFFECT: A MYTH OR REALITY? ESAD [Internet]. 2019 Sep. 1;15(1):33-47. Available from: https://izlik.org/JA79KG55AC

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