The Myth

We like to believe that our decisions are rational, we evaluate our options and this applies on all sorts of things like when we negotiate our salary or purchase a product or service. 

The Reality

That initial information presented to us series a reference point - an anchor - and everything that follows gravitates around that. The anchor doesn’t need to be accurate. It doesn’t even need to be relevant. It just needs to arrive first. We of course can use this cognitive bias in our advantage, that is if we’re marketers. And break from it if we are making a decision. The important thing is being aware. 

The Research

The anchoring effect was formally described by Amos Tversky and Daniel Kahneman, who showed that even arbitrary numbers could influence judgment. In one experiment, participants spun a wheel rigged to land on a random number, then estimated the percentage of African nations in the UN. The estimates clustered around the random number they’d just seen. Anchors activate related information in memory, shaping what feels “plausible” before conscious reasoning kicks in.

In other words: by the time you think you’re evaluating, the frame is already set.

More examples in real life

Pricing

A SaaS pricing page shows an Enterprise plan first, labeled “Contact sales.” No price. Just implication. The Pro plan below suddenly feels affordable — not because it is, but because of what it’s being compared to.

Salary negotiations

A recruiter says, “Roles like this usually pay around $120k.” Every counter-offer now orbits that number, even if the true market range is wider.

Discounts

“Was $299, now $149.” The original price does the persuasion. The discount just gives you permission to accept it.

Usage limits

“Includes 10,000 API calls per month.” Without context, that number becomes the benchmark. Smaller feels insufficient. Larger feels generous. Meaning is inferred, not calculated.

The Implications

Good marketers use anchors to reduce cognitive load, frame value, and guide decisions. Bad marketers use them to obscure weak value or inflate perception.

For buyers, the risk isn’t being manipulated — it’s being unaware of the frame you’re operating inside. 

Closing thought

Anchors don’t override reason. They precede it. The most dangerous anchors are the ones you never notice — because they feel like common sense.

Here are a few techniques to break out of the anchor: The goal is to force your brain out of “adjust-from-the-first-number” mode and back into first-principles thinking.

Questions you can ask yourself when you are presented with data: 

  • If I hadn’t seen this, what would I expect?
  • If this number were 30% higher, would I still accepted. What if it were 30% lower?
  • When negotiating state your anchor first, even if it’s aggressive. 
  • Don’t decide immediately.
  • Force a 24-hour cooling-off rule on big decisions