Advances in Economics, Management and Political Sciences

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Proceedings of the 7th International Conference on Economic Management and Green Development

Series Vol. 29 , 10 November 2023


Open Access | Article

Applying Anchoring Effect in Catering Industry ——A Case Study of Cotti Coffee vs. Luckin Coffee

Zizheng Zhang * 1
1 Capital Normal University High School

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 29, 9-14
Published 10 November 2023. © 2023 The Author(s). Published by EWA Publishing
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Citation Zizheng Zhang. Applying Anchoring Effect in Catering Industry ——A Case Study of Cotti Coffee vs. Luckin Coffee. AEMPS (2023) Vol. 29: 9-14. DOI: 10.54254/2754-1169/29/20231345.

Abstract

Behavioral economics is one of the hot topics in current research. Some researchers have found that the anchoring effect in behavioral economics theory generally appears in various markets in people's lives. This paper focuses on the anchoring effect in the catering industry, taking Luckin Coffee and Cotti Coffee as case studies on why and how anchoring has an effect on consumers' consumption decisions. This study conducted a questionnaire among Chinese high school students to show the existence of anchoring effect and explain how individuals make consumption decisions. Finally, this paper discusses the reasons why people are not affected by the anchoring effect, and gives corresponding suggestions from the perspectives of merchants and consumers, that is, how merchants can strengthen the anchoring effect on consumers to increase sales and how consumers can avoid falling into the consumption trap created by the anchoring effect.

Keywords

behavioural economic, anchoring effect, catering industry

References

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3. Wilson, T. D. , Houston, C. E. , Etling, K. M. , & Brekke, N. A new look at anchoring effects: basic anchoring and its antecedents. Journal of Experimental Psychology General, 125(4), 387-402, (1996).

4. Wang Xiaozhuang, & Bai Xuejun. Anchoring Effect in judgment and Decision. Advances in Psychological Science (1), 7, (2009).

5. Bian, T. Y. , Huang, J. , Zhe, S. , & Zhang, M. Anchoring effects in the chinese art market. Finance Research Letters(3), 102050, (2021).

6. He Daan. The Realization of Bounded Rationality of Behavioral Economic Man. Chinese Social Sciences (4), 11, (2004).

7. Yuan Gang. Application of anchoring effect in enterprise marketing from controllable factors. China Market (41), 4, (2013).

8. Beijing Business Today, http://m.bbtnews.com.cn/article/281113, last accessed 2023/3/15.

9. Cotti Coffee Homepage, https://www.cotticoffee.com/brand, last accessed 2023/3/14.

10. Tik Tok Homepage, https://www.douyin.com, last accessed 2023/3/15

Data Availability

The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.

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Volume Title
Proceedings of the 7th International Conference on Economic Management and Green Development
ISBN (Print)
978-1-83558-079-0
ISBN (Online)
978-1-83558-080-6
Published Date
10 November 2023
Series
Advances in Economics, Management and Political Sciences
ISSN (Print)
2754-1169
ISSN (Online)
2754-1177
DOI
10.54254/2754-1169/29/20231345
Copyright
© 2023 The Author(s)
Open Access
This article is an open access article distributed under the terms and conditions of the Creative Commons Attribution (CC BY) license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited

Copyright © 2023 EWA Publishing. Unless Otherwise Stated