PH
Seeing “₱1,000 → ₱699” doesn't produce the same psychological response as simply seeing “₱699.” The original ₱1,000 price becomes an anchor, giving the brain a reference point for judging the new price. This can make ₱699 feel inexpensive even when the shopper would normally consider it costly.
Anchoring influences decisions in shopping, negotiations, salaries, and many other situations. The first number doesn't have to determine the decision to influence it. Sometimes, a bargain begins with the price someone didn't pay.
© Journal of Consumer Research