ANCHORING BIAS: A LITERATURE REVIEW ON COGNITIVE MECHANISMS AND DECISION-MAKING IMPACT

Anchoring bias, a cognitive bias where initial information disproportionately influences subsequent judgments, plays a significant role in marketing decision-making processes. This literature review explores the cognitive mechanisms behind anchoring bias, its various forms, sources, and the strength of its influence, with a particular focus on marketing applications. By examining numerical and non-numerical anchoring, internal and external sources, and the underlying cognitive processes, the review provides a detailed understanding of how anchoring bias shapes consumer perceptions, pricing evaluations, and purchase decisions. This understanding can inform strategies to mitigate its effects, leading to better marketing practices and more rational consumer choices.