ANCHORING BIAS: A LITERATURE REVIEW ON COGNITIVE MECHANISMS AND DECISION-MAKING IMPACT

Abstract

Anchoring bias, a cognitive bias where initial information disproportionately influences subsequent judgments, plays a
significant role in marketing decision making processes. This literature review explores the cognitive mechanisms
behind anchoring bias, its various forms, sources, and the strength of its influence, with a particular focus on marketing
applications. By examining numerical and non numerical anchoring, internal and external sources, and the underlying
cognitive processes, the review provides a detailed understanding of how anchoring bias shapes consumer perceptions,
pricing evaluations, and purchase decisions. This understanding can inform strategies to mitigate its effects, leading to
better marketing practices and more rational consumer choices.