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Shawn Van Dyke, a construction industry consultant, wrote on a home building site:
Brains do some pretty funny things when making a buying decision. If you understand your customers' brain activities, then you can use this knowledge to help increase your sales and deliver on value . . . .
There's an old question in advertising. "How do you sell a $2,000 watch? Put it next to a $10,000 watch." This is an example of price anchoring.
a. What is price anchoring?
b. Explain why Van Dyke cited the "old advertising question" as an example of price anchoring.
c. Give 2 more examples of price anchoring.
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