Imagine walking into a store, spotting a handbag “originally $398, now $129,” and feeling an irresistible urge to buy it. This scenario is a classic example of the anchoring effect in action.
That wasn’t an accident. It was the anchoring effect in action.
The anchoring effect, a cognitive bias where people heavily rely on the first piece of information they receive when making decisions, plays a significant role in marketing and advertising. That first number, value, or impression shapes how everything that follows is perceived, enlightening us about its influence on consumer perceptions.
Brands have not just recognized the anchoring effect. Still, they have also mastered the art of using it to their advantage, impressively shaping consumer perceptions.
T.J. Maxx: Turning Discounts Into Victories
T.J. Maxx has built an empire by making shoppers feel like treasure hunters. How? By anchoring every product to its “original retail price.”
When you see a designer coat with a tag that says “$299, our price $89,” your brain immediately latches onto the $299 figure. Suddenly, $89 feels not only reasonable—it feels like you’re winning. Even if $89 would usually seem expensive for an impulse buy, compared to $299, it’s a deal too good to pass up.
T.J. Maxx isn’t just selling clothes. They’re selling the thrill of beating the system.
Apple: Anchoring Premium Expectations
When Apple launches a new iPhone, it often starts by showcasing its highest-end models first—the ones that cost over $1,200.
Even if you had no plans to spend that much, seeing that high price first reshapes your internal pricing scale. When Apple introduced the mid-tier model at $799, it felt relatively affordable. Anchoring makes $799 seem “reasonable” compared to $1,200, even if it’s still a hefty price tag.
This strategy frames the customer’s mindset before they even start buying.
Starbucks: Elevating the Everyday
Starbucks doesn’t just sell coffee; they anchor experiences. Their pricing subtly nudges customers into choosing more expensive options.
Notice how the tall size is almost the same price as a grande? Or how the menu leads with specialty drinks at $5–$6 before listing simpler brewed coffees at $3?
That’s anchoring at work: starting with a higher-priced product to make everything else feel like a value.
You don’t just buy a coffee—you buy a premium ritual that suddenly seems like a smart indulgence compared to those fancier frappuccinos.
Williams-Sonoma: How a “Bad Seller” Became a Best Seller
A famous example of anchoring in action comes from Williams-Sonoma. They once struggled to sell a $275 bread-making machine. Sales were sluggish.
Instead of lowering the price, they introduced a new, even more expensive bread maker at $429.
Suddenly, the $275 model looked like a bargain—and sales of it nearly doubled.
By anchoring customers to a $429 price point, Williams-Sonoma changed how people viewed $275. It no longer seemed expensive; it seemed smart.
How You Can Use the Anchoring Effect in Marketing
The anchoring effect isn’t just for billion-dollar brands. You can apply it in your own business with a few smart moves:
- Start high. Present your premium offering first—even if most people won’t choose it. It sets a higher baseline for the rest of your products or services.
- Use comparisons. Show the “original price” alongside the discounted price, or compare your solution to more expensive alternatives.
- Create premium packages. Even if your core offering is affordable, creating a higher-tier “deluxe” option makes your standard offer look great.
- Highlight scarcity or exclusivity. Higher prices can be justified through limited-edition versions or specialized upgrades, giving the anchor emotional weight.
A Word of Caution
While the anchoring effect is undeniably powerful, it must be used with authenticity. Customers are savvy, and if your ‘original price’ feels inflated or your premium offerings aren’t genuinely better, it can backfire, damaging trust. This caution is crucial when using the anchoring effect.
Customers are savvy. If your “original price” feels inflated or your premium offerings aren’t genuinely better, it can backfire, damaging trust. This is a key risk when using the anchoring effect in your marketing strategies.
Anchoring works best when tied to real value: better quality, experiences, and outcomes.
The anchoring effect shows us that price and value are rarely objective. They’re relative—and innovative brands understand how to guide those perceptions.
Whether it’s a handbag at T.J. Maxx, an iPhone, a morning coffee at Starbucks, or even a bread machine at Williams-Sonoma, anchoring taps into deep parts of human psychology. It shapes how we perceive deals, choices, and ultimately, satisfaction.
The next time you craft a marketing offer, launch a product or even update your website pricing page, ask yourself:
What anchor are you setting?
The first number of people who see you might decide what they will do next.
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