When negotiating with a potential buyer,Tela always starts by suggesting a price that is much higher than she expects to receive.She's noticed that when she suggest a specific number,the buyer is likely to counter with an offer that is relatively close to her initial suggestion.This is an example of:
A)a framing effect.
B)a mental set.
C)an availability effect.
D)an anchoring effect.

Question

Quizplus · Accepted Answer

Tela is utilizing the anchoring effect by suggesting a high price as her initial offer, which sets a higher reference point for the buyer's counteroffer. This can result in the buyer offering a price that is closer to Tela's initial offer than if she had suggested a lower price to begin with.

When Negotiating with a Potential Buyer,Tela Always Starts by Suggesting