Analyzing Anchoring Theory in the Fruit Juice Business: A Case Study

This case study examines the application of anchoring theory within the fruit juice industry, focusing on how consumer perceptions, particularly those related to health and ingredient awareness, influence purchasing decisions. The paper highlights how the initial information consumers receive (the anchor) impacts their subsequent judgments and choices, specifically the shift from brand familiarity to ingredient scrutiny. The analysis covers the impact of health reports and campaigns emphasizing the benefits of natural fruit juice, influencing consumer preferences and market dynamics. The study explores the role of anchoring theory in the context of various consumer segments, including parents, the sick, and the elderly, and how the perceived health value of natural fruit juice has reshaped consumer behavior. It also discusses how manufacturers of natural fruit juice are expected to thrive while those relying on chemical-based processes may face challenges. The paper concludes by emphasizing the significant role anchoring theory plays in shaping consumer attitudes and purchasing decisions within the fruit juice sector, providing a comprehensive analysis of the industry's evolution and the impact of health-related information on consumer choices.

Running Head: ANCHORING THEORY IN BUSINESS, FRUIT JUICE CASE STUDY 1
ANCHORING THEORY IN BUSINESS, FRUIT JUICE CASE STUDY
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ANCHORING THEORY IN BUSINESS, FRUIT JUICE CASE STUDY 2
The different approaches used by the sellers to their sell their products in the current
markets play a great role in the success or failure of the seller. Many are the cases where two
sellers operating in the same line of products have indicated different success rates (Orcher,
2016). This is different from the way sellers used to succeed a few decades ago where the
success rate of a firm relied on sellers good luck than efforts. Behavioral science is among the
few areas which have emerged in the sector of seller- consumer approach as a game changer.
Through behavioral science, sellers operating in the same line of products and services have been
able to compete favorably for customers (Siddiqi, Mishra & Shafiq, 2015).
Behavioral science has been defined as a discipline dealing with human behavior mainly
drawn from the fields of sociology, psychology, anthropology and other human behavioral
aspects under economics like psychiatry and biology. Behavioral science emphasizes approaches
which are more experimental than those advocated by social sciences (Thompson, 2017). This
paper will scrutinize the different ways in which business organizations utilize human
psychology I marketing to ensure customer loyalty. The product to be scrutinized in the case
study is the fruit juice.
Some few years ago, juice consumers used to purchase juice based on the brand
familiarity and its taste without much attention to the ingredients used in processing the juice. In
the current times, however, this trend has changed following the emergence of various diseases
linked with the consumption of products which contain high levels of chemical content
(Andrews & Johnson, 2016). Additionally, health practitioners have recently embarked on the
journey of enlightening people on some of the approaches to ensuring healthy living and that has
seen most of the juice consumers change their purchasing behavior which was mainly based on

ANCHORING THEORY IN BUSINESS, FRUIT JUICE CASE STUDY 3
brand taste and familiarity of the manufacturer to considering the ingredients of the juice (Van
Ittersum & Wansink, 2016).
The change from brand familiarity-approach by the customers when purchasing juice
products has greatly impacted the fruit and juice industry. This draws from the anchoring theory
that stipulates out on how people tend to believe in the information conveyed to them first
(Salehinejad & Samizadeh, 2017). For instance, in the case study of fruit juice, consumers have
begun to shy away from purchasing juice products which have been manufactured with high
chemical levels in fear of the diseases which have been associated with such chemicals like
cancer and others. So, having the knowledge on the consequences of taking products with high
chemical levels in mind, manufacturers who produce natural fruit juice are expected to have
more customers while those who have maintained the chemical approach in manufacturing juice
are likely to face it hard when it comes to securing markets and customer loyalty for their
products (Silva, 2018).
Also, health reports have indicated that enough intake of natural fruit juice is an
important part of a healthy diet which in turn reduces the risk of getting chronic diseases like
cancer, stroke, cataract formation, and coronary heart disease. Such kinds of reports have also
enlightened consumers on the health benefits of frequent fruit consumption in the prevention of
esophageal, pancreatic, cervical cancer and bladder problems (Maniatis, 2014). From a consumer
point of view, this has come as a blow to vendors who initially used chemicals in the juice
manufacturing process as many consumers have become cautious when it comes to purchasing
such products

ANCHORING THEORY IN BUSINESS, FRUIT JUICE CASE STUDY 4
Health professionals have come out to campaign on the important role of taking fruits and
vegetables and that has entered the public domain with huge impacts making the vendors dealing
with fruit juice supply increase their sales contrary to the case before when juice consumers
could go for juice without consideration to the health implications of the brands (Tilman &
Clark, 2014). For that matter, the perceived knowledge on health value of fruits in our bodies
which has circulated in the public domain is expected to be a game changer in the juice industry
and the vendors who will embrace the natural fruit juice are expected to dominate the market
since consumers are likely to shift their attention to the current lifestyle which mainly has its
focus on the healthy living.
Intake of fruits has also been emphasized as one of the approaches to parents in enabling
them to raise healthy children. Many of the parents initially could raise their children using the
manufactured juice as a supplement for the maternal milk and that has been associated to the
increased health issues faced by young children (Ruel et al, 2014). However, with campaigns
against this approach in raising children has seen most parents shift from feed the young ones
with any kind of but prefer the natural fruit juice. This has additionally seen the vendors who
manufacture natural fruit juice obtain favor r in the market and make considerable steps ahead of
vendors who manufacture chemically engineered fruit juices (Tavassoli et al, 2017).
The health value of fruit juice for the sick people has also been presented on the public
domain making people embrace it when it comes to taking care of their sick ones. Initially, sick
people would be visited with any kind of juice since the knowledge on the side effects of
chemical engineered fruit juice had not been revealed (Abbaspour, Hurrell & Kelishadi, 2014).
However, with people now having the knowledge on the side effects of chemical engineered fruit
juices have made them shift from feeding their sick ones with this kind of juice to natural fruit

ANCHORING THEORY IN BUSINESS, FRUIT JUICE CASE STUDY 5
juices. Currently, vendors who operate near hospitals have testified of their business growth
following this kind of revelation.
Just like in the case of young children, the value of natural fruit juice in strengthening the
older people whose energy has deteriorated following their age has also been emphasized by the
health practitioners and embraced in the public domain (Thompson, 2017). Following the
enlightenment, people with old relatives, parents or guardians have currently invested in natural
fruit juice as an important diet to enable them to keep strong and healthy. This has seen natural
fruit vendors expand their businesses since consumers are increasing day I day out. Initially,
following the lack of enlightenment and knowledge on the implications of chemical engineered
fruit juices could see some of those old people fed on such juices and that has been associated
with the high death rates among the old people which were being recorded in those times
(Andrews & Johnson, 2016).
Finally, the value of natural fruit juice to pregnant mothers has also been praised by
health practitioners to play an important role to ensure safe delivery as well as healthy babies.
This has seen pregnant mothers embark on natural fruit juice as an important diet throughout
their pregnancy period which has seen natural fruit vendors expand their businesses since
consumers are increasing day I day out. A few years ago, due to the lack of enlightenment and
knowledge on the implications of chemical engineered fruit juices could see some of the
pregnant mothers consume such juices which could result into complications during the delivery
times as well as conceiving babies with health complications. They belief in the information
conveyed by health practitioners against chemical engineered juices and their negative impacts
on the health of pregnant mothers, in this case, has led to increased demand for natural fruit
juice(Tavassoli et al, 2017).

ANCHORING THEORY IN BUSINESS, FRUIT JUICE CASE STUDY 6
From the discussion above, it comes out clearly that the anchoring theory that stipulates
out on how that stipulates out on how people tend to believe in the information conveyed to them
first and how it has played a considerable role in promoting natural juice product. This can be
directly linked with the change from the brand and familiarity-based approach in purchasing
juice to health implications of natural juice as it concerns to sick people, small children and old
people as well (Van Ittersum & Wansink, 2016). Through such enlightenment, current juice
consumers have begun to shy away from the juice products which have been manufactured with
high chemical levels in fear of the diseases which have been associated with such chemicals like
cancer and others (Salehinejad, & Samizadeh, 2017). So, having the knowledge on the
consequences of taking products with high chemical levels in mind, manufacturers of natural
juice naturally are expected to keep expanding while those who will maintain the chemical
approach in manufacturing juice are likely to face it hard when it comes to securing markets and
customer loyalty for their products.
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