PEOPLE UNDERESTIMATE HOW MUCH TIME WILL BE NEEDED TO COMPLETE A TASK
Description
The planning fallacy refers to our predictions, where people underestimate the time it will take to complete a future task, despite the knowledge that previous tasks have generally taken longer than planned.
Research:
The Berlin Brandenburg Airport began construction in 2006. It was planned to open in 2011. Due to poor planning, the Airport was delayed 9 years in 2020.
Application
Pricing Strategies
In e-commerce and online retail, anchoring can be used in pricing products. For example, a high original price can be shown next to a discounted price, making the discount seem more significant and attractive. This original price serves as the anchor, making the lower price appear exceptionally good value in comparison. This technique is often used in sales or promotions, where the original price is crossed out next to the sale price.
First Impressions in Advertising
The first message or image presented in an advertisement can set the tone and expectations for the entire product or service. For example, showcasing a premium, high-quality image or statement as the initial part of an ad campaign can create a perception of high value and quality in the minds of consumers. This anchor influences how subsequent information about the product or service is perceived.
Content and Value Perception
Anchoring can be used in content marketing by initially presenting authoritative, highly valuable content or information to users. This establishes a perception of expertise and credibility in a particular domain. Once this anchor is set, any subsequent content or products related to this domain are more likely to be perceived as valuable and trustworthy. For example, a detailed, well-researched blog post on a topic can serve as an anchor, enhancing the perceived value of related products or services offered by the same company.
Examples
