Anchoring effect: definition, examples and how to use it in marketing

The anchoring effect helps us decide quickly in a world full of options. Without realising it, we rely on the first impression or the first number we see and measure everything else against it. That reference point is called the anchor. For your marketing, this means that whatever comes first shapes how everything after it is perceived. This article is part of our series 10 psychological effects in marketing.

What is the anchoring effect?

The anchoring effect (also called anchoring bias) describes how a value mentioned first pulls our subsequent estimates and decisions in its direction, even when it has little to do with the question. The psychologists Amos Tversky and Daniel Kahneman described it in 1974 as one of the rules of thumb we use to judge under uncertainty.

The anchor works without us noticing. Even people who know that the first value was random only adjust away from it partially.

Example: the first flat

Imagine you are looking for a flat. The first viewing is exceptionally expensive. That price sets itself as the anchor. Every flat you see afterwards seems affordable by comparison, even if it is objectively still expensive. The decision is made faster, because the following offers look like bargains.

The anchoring effect in marketing

Companies set reference points to steer how their products are perceived. The best-known forms:

1. Reference price: The previous price is shown crossed out next to the current one. The higher value is the anchor, which makes the current price look more attractive. Important: in the EU, the previous price for a reduction must be the lowest price of the last 30 days. Invented original prices are not allowed.
2. Order in the range: The premium product first, the others after it. The middle option looks reasonable.
3. Packages: Three options side by side, the largest first. Many people choose the middle one because it looks moderate next to the anchor.
4. Values instead of prices: An anchor does not have to be a price. "Saves you one working day a week" sets a reference point for the benefit, provided the claim is backed up.

How we use the anchoring effect in ads

In ads, the order determines what the anchor is. At ad.boutique, we plan it deliberately:

• Carousel ads: The first card shows the highest-quality product or project. The cards that follow appear in a more favourable light by comparison.
• Hook with a reference point: The first second shows the benchmark, for example the problem in its most expensive form, and then the solution.
• Landing page with the same logic: The anchor from the ad reappears on the page, so the expectation holds. More on this in conversion rate optimisation for online shops.
• Testing: Whether the premium product or the bestseller works better as the first card is decided by the creative test. How we set that up is explained in ad creatives for Meta.

Limits

An anchor only works if it is credible. If the reference point seems exaggerated or is invented, trust collapses, and with prices there are legal consequences. Set anchors that are true: genuine previous prices, genuine premium products, proven benefits.