What is the concept of Anchoring in Sales

Anchoring in sales refers to the psychological principle where a person's initial impression or exposure to a value or price influences their subsequent judgments and decisions. In other words, an anchor or reference point is set in the customer's mind, and all subsequent negotiations or decisions are based on this anchor.

In sales, anchoring is often used to influence a customer's perception of value. For example, a salesperson might present a high-priced item first, then present a lower-priced option, making the lower-priced option seem like a better deal than the anchor. This can make the customer more likely to purchase, even if the lower-priced item is still more expensive than they had initially intended to spend.

It's important to note that anchoring can also have a negative impact if the customer feels like they're being manipulated or misled. For this reason, it's crucial to be transparent and ethical when using anchoring in sales and to ensure that the customer fully understands the value of the products or services offered.

Rishi Gangoly
Digital Marketing Consultant