The Anchoring Effect in Consumption: A Case Study

Abstract

The anchoring effect influences consumers’ willingness to pay and their perception of prices through initial prices or reference values, often resulting in irrational decisions. This study aims to explore how merchants leverage anchoring to influence consumer behavior, using case analyses in restaurant pricing and home purchases, and to examine how consumers can counteract such tactics to make more rational choices. Key findings include: (1) In restaurants, artificially inflated original prices can establish a “discount anchor,” increasing consumers’ willingness to pay a premium; however, this effect is moderated by the type of dish; (2) In real estate transactions, sellers use high initial offers to raise final sale prices through a “price negotiation interval compression” mechanism, and the buyer’s experience level negatively moderates this effect. This study is the first to systematically compare the differential manifestations of the anchoring effect in service consumption and asset trading. It provides empirical support for behavioral pricing theory and offers targeted policy recommendations for consumers (identify anchoring traps), investors (optimize pricing strategies), and regulators (improve price disclosure mechanisms).