Which pricing tactic is a classic example of anchoring?

• A. Placing a very expensive item on the menu to make others seem reasonable
• B. Offering a deep discount without any anchor
• C. Pricing all items the same
• D. Rounding prices to the nearest dollar

Answer: (A)

Anchoring is the tendency to use the first price you encounter as a reference point for judging all other prices. On a menu, putting a very expensive item at the top creates a high anchor. Because the rest of the items are priced well below that benchmark, they start to look more affordable by comparison. This influences choices, often steering customers toward mid-range options that feel like better value relative to the anchor. The tactic is a classic example of anchoring because it intentionally sets a reference point that shapes perceptions of price and value across the entire menu.

Other approaches don’t establish that same reference point. A deep discount without a high anchor doesn’t frame the remaining prices effectively. Pricing all items the same removes the contrast that makes a mid-priced item seem like a bargain. Rounding prices to the nearest dollar simplifies pricing but doesn’t establish a deliberate high reference price to bias judgment.