Applications of Availability Heuristic and Anchoring Effect: A Consumer Perspective

Abstract

In today's dynamic social and economic environment, consumer behavior is significantly influenced by cognitive biases such as the availability heuristic and anchoring effect. This paper examines how these biases are leveraged in advertising and mobile phone marketing, using the cases of Safeguard's antibacterial soap and Huawei's collaboration with Porsche Design. The study aims to reveal how these biases shape consumer decisions and offers suggestions for more rational consumer behavior. The analysis shows that advertising can manipulate information recall to influence consumer perceptions, while the anchoring effect can alter willingness to pay through high-end brand associations. These strategies are effective but often leave consumers unaware of their impact, leading to potentially optimal decisions. The study's significance lies in its contribution to understanding marketing strategies and cognitive biases in consumer behavior. It highlights the importance of consumer awareness and rational decision-making. The paper suggests that consumers should seek comprehensive product information, consider real user reviews, and align purchases with actual needs to mitigate the influence of these biases. This approach can lead to more informed and cost-effective choices. Future research could explore the interplay between these biases and other factors such as cultural differences and technological advancements.