Read the whole article for a number of fascinating examples of how you are easily manipulated by this. And you know politicians, the military, talk show hosts and many others are using this to sway public opinion, too.
The Misconception: You rationally analyze all factors before making a choice or determining value. The Truth: Your first perception lingers in your mind, affecting later perceptions and decisions.
[…]
In 1974, Amos Tversky and Daniel Kahneman conducted a study asking a similar question. They asked people to estimate how many African countries were part of the United Nations, but first they spun a wheel of fortune.The wheel was painted with numbers from 0 to 100, but rigged to always land on 10 or 65. When the arrow stopped spinning, they asked the person in the experiment to say if they believed the percentage of countries was higher or lower than the number on the wheel.
They then asked people to estimate what they thought the actual percentage of nations was. They found people who landed on 10 in the first half of the experiment guessed around 25 percent of Africa was part of the U.N. Those who landed on 65 said around 45 percent. They had been locked in place by the anchoring effect.
[…]
When shopping for a car, you know it isn’t a completely honest transaction. The real price is probably lower than what they are asking for on the window sticker, yet the anchor price is still going to affect your decision.
No, I won’t read the article. I’ve already been anchored to the notion that while we are rational/thinking creatures, we swim in a sea of emotions. I raised this issue in the very last post I made yesterday on an “unrelated” issue = but thru emotions, everything is related. All a matter of degree.
Why do you think what you think and how do you change your mind? what is the “higher” value? To make/keep as much money as possible or to enjoy watching other people and yourself living a better life? When values contest, how should a winner be selected?
Whats really important to you? Why? Accept it. And thereby hangs the tale.
Seems to me rather then the anchor effect, it’s The Price is Right effect.
What a surprise, people are sheep. I would have never guessed. People make money writing crap like that?
#3–Improbus==you do recognize this study relates directly to YOURSELF? and Olo and myself. Sheep are anchored to the lead sheep and follow blindly. The whole point here is become just a bit more self aware than present yourself so that your decision making can become more conscious. Now, stop eating the grass and pay attention.
We the American sheeple are trained to measure our self worth by how many toys we have and how we look. I’m really talking about you.
There are societal anchor effects as well. When entertainment involves bodily fluids and functions the society may not be the acme of humankind. Hurry! Only 383 people have seen this video. It could be taken down very soon.
http://youtube.com/watch?v=eVb_pwi8JfI&NR
I read the linked article. The other examples are informative but all of the same type. There are other types of “subconscious influences” going on that are of a different type and just as interesting.
What is a watch “worth?” Is it worth the amount of gold and diamonds it has a jewelry or merely the accuracy of its timekeeping? Same with shoes–designer label or comfort? If you ever go for a job that requires an interview with a psychologist you want to make sure you have these objective elements and others consistent with your goals. A one dollar plastic digital clock taped to your wrist tells perfect time as a broke Rolex may not but both Anchor you to a bad evaluation.
Ok, not a fair use of Anchor. Is our evaluation of our next girlfriend/spouse affected by the old one? Car? Job? House? Happiness/Satisfaction?
Kinda makes being a sheeple sound attractive.
>And you know politicians, the military, talk show hosts and many others are using this to sway public opinion, too.
Sounds like the editor is anchored in a certain place.
Duh! So another useless study back in 1974 shows people who don’t have a clue on the correct answer end up guessing. And external factors can affect their wild-ass guess.
Stop the presses! What a breakthrough!
Ever taken a Marketing Class?
Something like this perhaps? mhmm…
I don’t know about you guys, but I prefer to not be a sheep and eat the sht left behind in the grass by others. Don’t be stupid, at least have ego of Boobi, to btch and then follow.
TheOne==when you say “you prefer not to be a sheep” are you thinking you aren’t one?
Amusing.
Give them a book, and they eat the covers.
#7, Yes, the question of why you are buying a certain type of thing is an interesting one. While there is of course a utilitarian aspect, there is a large component to the choices we all make that involves signalling. Most people have a built in need to be (or appear to be) better than others, which is why we spend so much time and resources to do it. “Keeping up with the Joneses” isn’t necessarily so we can feel better about ourselfs, but so that others don’t feel as good about themselves when they look at us. This signalling can have its benefits, but is also highly inefficient. Example: shuffling everybody off to college so that they can be “more competitive” to eventually take jobs that never required more than a high school education 20 years ago is a huge waste of resources, inflates the minimum requirements for employment, and locks people who lacked the oportunity for college out of the job market.
SL==I agree but this signaling seems more a conscious choice than an unconscious one? In the same family of subtleties but not even on the same branch?
Con men know these signals well. Gold Diggers, the upwardly mobile, the rich man who drives a volkswagen==all very conscious.
Here are a few more towards the branch:
Don’t make important decisions when angry or sick or half asleep? I have sold a few personal homes and have consistently thought it was worth more than the market allowed. “I” liked it so much but what are my memories worth regarding comparative sales? Just more personal bias. Once I became aware of it, I could deal with it. Good thing I didn’t think only other people were sheeple, otherwise I’d still be in the field trying to sell my last house.
There are lots more “Hidden Persuaders.” Not anchors, but mood setters and chronic biases.
All good to know more about and that before we even get to brain chemistry.
Think you’re about right bobbo, but I suspect SL has a deeper point – you list some conscious actors, but I think he meant the sort of effect that Thorstein Veblen wrote about; I see it every day and suspect that it’s pretty nearly genetic with us apes. We need to figure out a system that allows for the tendency without yielding to it outright . . . otherwise we’ll end up right here.
So this is about Apple users?
Cursor_
Gazbo==so by “deeper” you think SL does mean to say this signaling is unconscious? I’m sure some of it is which would be consistent with my own deeper point. but it the majority of such signals are unconscious, then indeed SL is being deeper and I am wrong. Conscious vs Unconscious signaling? Would the consciousness be the main distinction or would something actually deeper/different also be going on?
Hmmmm…. deep!
Dan Ariely, mentioned in the article, is a really smart guy. His book, Predictably Irrational, is solid and informative.
There is a whole industry related to conditioning and influencing people. They have already done the work. Might as well us it to your advantage.
#17 I think Pedro wants an Apple product given the obsession. Hmmm.
What is your address so I can send you an Apple sticker that came with my iPOD. I might have one for your Windows 3.1 desktop. Don’t be so negative, all you have to do is ask.
Isn’t the “anchor price” the same as the “MSRP”?
It’s not just with pricing. When they do these “unbiased” surveys. They often express the question with biased choices. For example a poll about abortion rights could be worded as, “Do you believe innocent babies should be killed?” Or “Do you believe victims of a violent rape, should be forced to bear their offenders child?”
You see, it can be biased emotionally either way. And pollsters with a political and/or religious agenda, often do. Unapologetically.
Even your local Tv news channels pull this crap. Especially, if they’re with FOX.
Sorry bobby-o, just got back.
I meant to say that while the signals may be conscious, the drive or felt need is unconscious.People make choices intentionally and un- semi- or fully aware of why, and rarely question their own motives – and in fact defend their motives with great zeal.
We are apes I tell ya, but apes with at least the possibility of self awareness.It’s a lot of bother but worth it I believe.
BTW, I would NEVER suggest that you were actually wrong.
This signaling can have its benefits, but is also highly inefficient. Example: shuffling everybody off to college so that they can be “more competitive” to eventually take jobs that never required more than a high school education 20 years ago is a huge waste of resources, inflates the minimum requirements for employment, and locks people who lacked the opportunity for college out of the job market.