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Anchoring Ever go into a shop and see so many sale signs that it seems to be almost normal? They are likely making use of this bias called anchoring, which is people's tendency to rely on the first piece of information that they come across (for the record, this is also applicable in investing, which I've mentioned in Organizing Thoughts) A high retail price is given while a lower, sale price is the actual price, making it look like there's been a huge markdown, encouraging you to buy, while the retailer is still able to make their profit margins. Loss Leaders Companies some times may ......There are many tricks that companies use to encourage us to shop more and to spend more. Maybe it's time that we should start learning about some of these tricks and trying to spot them on our next shopping trip.
