![]() This usually is due to our tendency to ‘anchor’ the bargaining that follows in its direction, even in cases where the recipient might think that the offer is out of line. The party who puts forth the first offer often gets the lion’s share of the value. Anchoring is particularly useful when it comes to negotiations in price. It comes into use in cases of negotiation, since it can help us make as well as respond to first offers a lot more effectively. Since this habit distorts our judgment, anchoring is considered a type of cognitive bias. If you do, email me at and let me know how it went.‘The Anchoring Effect’ is a cognitive heuristic wherein human beings tend to rely heavily on the very first piece of information offered to them, known as ‘the anchor’, when making decisions. I hope you test it in some upcoming appeals. So if your control is: low | avg | high | open, you might test: high | open. If you’re using a calculated ask array, you might test leaving off the average and low asks. If you’re building a donation page, you might start by figuring out your average online gift and rounding up. Limit the low end of ask arrays - Since any number can become an anchor, test leaving out anything on the low end in your ask arrays.Instead of leading with $1.76 provides a hot meal, try $88 provides 50 hot meals. You might even have been able to work out a dollar handle with an unbelievable perceived value, say $1.76 provides a hot meal or $5 to put a Bible in the hands of a Christ-seeker.You might test never using that low dollar figure in order to avoid the anchor effect. Use multipliers to increase your dollar handle - Hopefully you’ve already done the hard work to develop dollar handles that provide tangible value to your donors. ![]() While there is no such thing as “best practices” when it comes to neuromarketing, here are two anchoring effect ideas worth testing: How might we apply this to our fundraising? These are just a handful of the studies that show how seeing a number-even a random number-can have an outsized effect on our rational thinking. But, when the anchor was $400, the average donation rose to $143. On average, those with no anchoring question said that they would donate $64. When the anchor was $5, their donation went down to $20. He asked guests if they would make an annual contribution to “save 50,000 offshore Pacific Coast seabirds from small offshore oil spills?” Some guests were first asked an anchoring question, such as, “Would you be willing to pay $5…?” Kahneman did another interesting study with guests of the Exploratorium. On average, those who rolled 9 said they would sentence her to 8 months, while those who rolled 3 sentenced the defendant to 5 months - an anchoring effect of 50%. Then, before making a sentencing judgment, rolled dice rigged to always show 3 or 9. In a more disturbing study, judges with 15-plus years of experience reviewed the details of a shoplifter’s case. In this case, mentioning 1,200 feet caused people to guess higher, while 180 feet dragged guesses down. The anchoring effect happens when we use an initial piece of information to make subsequent judgments. Nobel Prize-winning psychologist Daniel Kahneman did this and other research to show a cognitive bias called anchoring. ![]() But, when the first question was changed to 180 feet, the average guess was 282 - a 66% difference. ![]() If you’re anything like the guests at the San Francisco Exploratorium, you probably guessed around 844 feet. What is your best guess about the height of the tallest redwood tree? Anchoring Effect Is the height of the tallest redwood tree more or less than 1,200 feet?
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