Question

Which of the following exemplifies anchoring?

a) We think lottery wins are more common than they are.
b) A $100 wine bottle is intentionally placed at the front of the LCBO
c) A prior commitment increases the confidence of a win.
d) If you spend a lot of money on something, you don't want it to go to waste.

Answer 1

Option b) 'A $100 wine bottle is intentionally placed at the front of the LCBO' demonstrates anchoring bias well, since the initial price can heavily influence customer perception and subsequent purchasing decisions.

Step-by-step explanation:

Exemplifying anchoring is when an individual relies heavily on initial information (anchors) when making decisions or estimations. Among the given options, b) A $100 wine bottle is intentionally placed at the front of the LCBO best exemplifies anchoring.

This is because when customers see this first price, they may use it as a starting point for evaluating the prices of other bottles, regardless of their actual value. As people view subsequent wines, their judgment of what is expensive or reasonable is influenced by that initial price.