The Anchoring Bias is a cognitive shortcut where the first figure or idea we encounter becomes a mental “anchor.” Everything that follows is unconsciously compared to it. Marketers master this phenomenon to influence consumer perception of price and value.

Imagine a luxury watch displayed for ₹1,00,000 next to one priced at ₹45,000. The cheaper watch seems like a bargain, even if ₹45,000 is more than a customer’s original budget. That first high price acted as an anchor, shifting perception of what seems “reasonable.”

Online stores also use this by striking through original prices and displaying discounts (“₹4,999 ₹2,999”). The buyer feels they’re saving ₹2,000, even if the real value is closer to ₹3,000. Anchoring works because humans rely heavily on initial information when making judgments, especially under uncertainty.

By setting the right anchor, marketers don’t just change how products are priced, they change how prices are felt. It’s not deception; it’s design psychology at work, showing how the first impression often decides the final choice.