Question

"The first piece of information offered to the consumer, or _____, is the first price offered in negotiated pricing." anchor breakeven objective orientation

Answer 1

Answer: anchor

Explanation: Anchoring as a cognitive bias describes the tendency for people to rely heavily on the first piece of information offered them during the decision making process. An anchor is the first piece of information offered to the consumer; the first price offered in negotiated pricing. An anchor sets a psychological benchmark that all other prices will be compared against. It is usually good practice to always display highest price first, so even when discounts are given there's relatively reasonable profits.

Answer 2

The correct answer is letter "A": anchor.

Step-by-step explanation:

Anchor pricing refers to the strategy business use to set an offer consumers an initial price overvaluing a product to then make a "discount" that will actually set the price of the product to regular levels. Consumers typically end up purchasing the product believing they were given a good deal when that is not true necessarily.

Thus, anchor pricing is the first price given to consumers in a purchase negotiation.