Price Anchoring is a psychological pricing strategy used in e-commerce to influence customers’ perception of the value of a product. It involves presenting a higher reference price alongside the actual selling price of an item, which makes the selling price seem like a better deal in comparison.
For example, if a product is originally listed at $100 but is now offered at $70, the $100 price acts as the "anchor." Customers are more likely to perceive the $70 price as a bargain, even if $70 is the price the seller intended to charge all along.
This technique helps e-commerce owners boost sales by making products appear more affordable and attractive, driving customers to make a purchase. When implemented correctly, price anchoring can significantly increase conversions and average order value on your webshop. By understanding and using price anchoring effectively, you can create a perception of value that encourages more purchases, ultimately driving the success of your online store.
