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

Analysis of Consumer Decision-making from the Perspective of Anchoring Effect

Xiaobo Zhou * 1
1 Xi'an Shi Tieyi High School

* Author to whom correspondence should be addressed.

Advances in Economics, Management and Political Sciences, Vol. 29, 114-119
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 Xiaobo Zhou. Analysis of Consumer Decision-making from the Perspective of Anchoring Effect. AEMPS (2023) Vol. 29: 114-119. DOI: 10.54254/2754-1169/29/20231361.

Abstract

The anchoring effect is a kind of heuristic deviation. When people make judgments about someone or something, they are easily dominated by the first impression or the first information, which is like an anchor sinking into the sea to fix people's thoughts somewhere. This paper analyses the fluctuation of inflation rate, the reduction of interest rate, and the change of COVID-19 policy in China in recent years. Consumers' price preferences are anchored by past prices, which prevents them from accurately predicting future price changes. If consumers believe that prices will remain the same in the future, they will use the current price as a benchmark for future prices, and they will base their consumption decisions on this price. However, if the price changes in the future, consumers will be priced wrong, so they will make wrong consumption decisions. Because of the anchoring effect, people have impulsive consumption, retaliatory consumption, and conservative consumption. In order to reduce the negative impact of the anchoring effect on the economy, this paper suggests that people should be fully aware of the market price, make reasonable expectations of inflation, avoid impulse consumption and retaliatory consumption.

Keywords

inflation, anchoring effect, COVID-19, interest rate

References

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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
10.54254/2754-1169/29/20231361
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