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The Robustness of Anchoring Effects on Market Good Valuations

19 Pages Posted: 11 Nov 2013  

SangSuk Yoon

Temple University - Department of Marketing and Supply Chain Management

Nathan M. Fong

Temple University - Department of Marketing and Supply Chain Management; MIT Sloan School of Management

Angelika Dimoka

Temple University - Department of Marketing and Supply Chain Management; Center for Neural Decision Making, Temple University

Date Written: November 10, 2013

Abstract

Ariely, Loewenstein, and Prelec (2003) showed that people’s judgments of a product’s value are strongly and systematically influenced by considering numbers (or “anchors”) which should be irrelevant to their valuations. However, subsequent studies showed inconsistent results while using different experimental protocols. To bridge the gap between conflicting prior studies, we replicated the anchoring effect in product valuations while also varying the experimental protocol. We examined whether the type of anchoring number (Social Security number vs. random number), recruiting method (classroom vs. email recruiting), or cover story (in-class market research demonstration vs. participation in research experiment) contributed to the divergent results. Our results replicated the anchoring effect at economically significant magnitudes (near the middle of the range for previous studies), but we did not find evidence that the procedural differences can account for the conflicting prior results.

Keywords: anchoring effect, product valuation, preference elicitation

Suggested Citation

Yoon, SangSuk and Fong, Nathan M. and Dimoka, Angelika, The Robustness of Anchoring Effects on Market Good Valuations (November 10, 2013). Available at SSRN: https://ssrn.com/abstract=2352692 or http://dx.doi.org/10.2139/ssrn.2352692

SangSuk Yoon

Temple University - Department of Marketing and Supply Chain Management ( email )

Philadelphia, PA 19122
United States

Nathan M. Fong (Contact Author)

Temple University - Department of Marketing and Supply Chain Management ( email )

Philadelphia, PA 19122
United States

HOME PAGE: http://sites.google.com/site/nmfong/

MIT Sloan School of Management ( email )

Cambridge, MA
United States

Angelika Dimoka

Temple University - Department of Marketing and Supply Chain Management ( email )

Philadelphia, PA 19122
United States

Center for Neural Decision Making, Temple University ( email )

Philadelphia, PA 19122
United States

HOME PAGE: http://www.fox.temple.edu/minisites/neural/index.html

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