Question

Wade sees that the new car that he wants is $20,000 and that feels like a huge amount of money to him. When he notices that the car is on sale for $16,000 for this weekend only, he is far more likely to purchase it compared to when he saw the original price of $20,000. His behaviour appears to be motivated by which of the following biases?

A. confirmation
B. anchoring
C. hindsight
D. representative
E. availability

Answer 1

The student's behavior appears to be motivated by the anchoring bias. The correct option is (B).

Step-by-step explanation:

The student's behavior appears to be motivated by the anchoring bias. The anchoring bias occurs when we rely on initial values or prices when estimating the actual value or price of something.

In this case, Wade initially saw the car priced at $20,000, which created a mental anchor for him. When he saw the discounted price of $16,000, it seemed like a much better deal compared to the original price.

This anchoring bias influenced his decision to be more likely to purchase the car.