Anchoring

mental-model

Anchoring changes how a price feels by planting a reference point before the buyer evaluates it. ₹499 can seem like a bargain beside ₹1,000 and expensive when judged on its own.

A product priced at ₹499 can trigger two opposite reactions without changing by a single rupee. Put “₹1,000” beside it and ₹499 looks irresistible; show ₹499 alone and it may suddenly feel too expensive.

E1

The first number becomes the yardstick

You rarely evaluate a price in isolation. The first salient number establishes a comparison point, and the next price is interpreted as a gain or loss relative to it. Once ₹1,000 is planted, the question quietly shifts from “Is this worth ₹499?” to “How much am I saving?” The crossed-out price therefore shapes judgment before the product’s value has been assessed—a tactic that becomes especially misleading when it is a Fake Reference Price.

E1

A comparison is not a valuation

Anchoring explains why ₹499 can feel cheaper after ₹1,000; it does not establish that the product is worth ₹499, that ₹1,000 was ever a genuine market price, or that the purchase is good value.

E1

Remove the crossed-out number

Before buying, hide or ignore the claimed original price and write down the amount you would pay for the product on its own. Compare that figure with ₹499; if the deal disappears when the ₹1,000 anchor disappears, the discount—not the product—was doing the selling.

E1

Episodes that teach this