Anchoring Bias

Question 1

Psychologists have found that people have tendencies to rely too heavily on the very first piece of information they learn, which can have a serious impact on the decision they end up making.

Answer 1

Anchoring Bias

Question 2

Example of Anchoring Bias

Answer 2

Free Promotion
Simple Price
Per Customer Limit

Question 3

Effects of Anchoring Bias

Answer 3

Poor decision-making
Skewed expectations
Dismissal of new information

Question 4

3 Ways of Identifying Anchoring Bias

Answer 4

1. Relying on a single source of information
2. Disregarding conflicting facts
3. Being reluctant to accept new ideas

Question 5

3 Ways for Reducing Anchoring Bias

Answer 5

Use multiple sources - One way to reduce anchoring bias is to collect more information.

Evaluate your reasoning - When you arrive at a new conclusion, ask yourself how you came to that conclusion.

Ask for a second opinion - If you think you’ve used anchoring bias, ask someone else for their opinion.

Question 6

How to avoid this bias

Answer 6

• By becoming more aware of it, anchoring bias happens subconsciously, and when one isn’t aware something is happening, it’s difficult to interrupt it.
• To look for reasons why that anchor is inappropriate for the situation.
• Considering alternative options
• Delay your decision.