What is Anchoring Bias

The chapter delves into the complex world of consumer behaviour, examining the profound impact of cognitive biases and social influences. In terms of cognitive bias, the issue unfolds through an examination of confirmation bias, anchoring bias, availability estimates, and endowment effects. These biases largely define decision-making, affecting how consumers perceive, interact with, and remain brand loyal. Methods for channeling and leveraging these biases have been clarified, enabling marketers to understand consumer behavior and adjust accordingly. Turning to social issues, the chapter reveals the dynamic interactions between peer influence, family traditions, word-of-mouth advocacy, social identity, and social norms and explores the role of social media in this development in the digital age. A thorough understanding of these social forces allows firms to develop strategies that align with customer values, preferences, and social expectations. The chapter emphasizes the importance of education in reducing cognitive biases and moderating social influences.