What does the concept of "price anchoring" in funeral merchandising involve?

The concept of "price anchoring" in funeral merchandising involves presenting a high-priced item first to establish a reference point for consumers. This strategy can influence the perception of subsequent prices, making them appear more reasonable or affordable in comparison. By anchoring the buyer's expectations with a higher price, other items—especially those at a lower price point—can seem like a better deal, even if they are still above the average market rate. This psychological effect can enhance the perceived value of the lower-cost funeral merchandise, thereby influencing purchasing decisions.

In this practice, it's essential to consider how consumers form their expectations of worth based on the initial information they receive about prices. By strategically positioning higher-priced options first, it effectively guides consumers toward making a decision that feels justified and satisfactory within their budget, leading to improved sales outcomes in the funeral service context.