Cognitive Perspective
-George owns a retail store. All of the items in the store have a price. George writes higher prices on each item then places a sign in the window that says "Sale! 30% off!" As George's customers come into the store, they are impressed by his sale and buy several items, even though the prices have not changed. What heuristic is leading George's customer to make this decision?

Question

Quizplus · Accepted Answer

Anchoring is a heuristic in which people solve a problem using a starting point, or anchor. In this example, the anchor is the new, higher price marked on George's merchandise. His customers use this as an anchor for making a purchasing decision. When they see the sale price is 30% below the anchor, they feel they are getting a bargain.

Cognitive Perspective -George Owns a Retail Store. All of the Items in Items