Matt Warren > Quotes

“Recent numbers can also inform and ‘anchor’ our thinking. If you walk into the supermarket and notice the price of a pack of expensive cereal, all the other cereal brands suddenly seem cheap. So if you are trying to sell a product, it makes sense to put it next to a similar, but more expensive, product – creating an anchor in the customer’s mind. It is the reason it works well to start with a high price if you are trying to sell something – making all lower offers seem generous.”
― Matt Warren, Are You Thinking Clearly?: 29 reasons you aren't, and what to do about it