Question

The process known as price ------------ works effectively because human minds assign disproportionate weight to the first information they receive when making decisions. When human see exorbitant prices first, the still high but lower prices that follow then seem like a much, much better deal.

A. Leveling
B. Increases
C. Decreases
D. Anchoring
E. Spotting

Answer 1

D) Anchoring

Step-by-step explanation:

Price anchoring is one of the oldest sales techniques. It is used by originally assigning a very high price to a certain product and then offering a much lower price for another substitute product. People have the tendency to anchoring bias since they use the original high price as a reference to whether the second product is cheap or not.