#decoy effect

[religion-is-a-mental-illness]

[inkmaggot]

Here is #6 from the Behavioral Economics concepts comic series. From the blog post:

Decoy Effect: Ivy the pup is having a tough time deciding between two really fun toys. One way to help her choose a particular toy is to provide a third option that’s just like one of the original choices but a little bit less enticing. This third option is called a “decoy” because we don’t expect anyone to choose an inferior option. The simple presence of the decoy enhances the attractiveness of one of the existing options. A good place to look for a decoy option is in price lists or menus. Check out this 1995 paper to learn about experiments on “asymmetric dominance” (AKA “the decoy effect”.)

[md3artjournal]

Watch "The Real Reason Coffee Comes In Three Sizes - Money Moves" on YouTube

The Real Reason Coffee Comes In Three Sizes - Money Moves

There are typically three options when buying a cup of coffee: small, medium, and large. This isn't just to give you more options.

Decoy Effect

[kalakkhorblog]

ডিকয় ইফেক্ট: যার মাধ্যমে ব্যাবসায়ীরা ক্রেতার মন নিয়ে খেলে

ডিকয় ইফেক্ট: যার মাধ্যমে ব্যাবসায়ীরা ক্রেতার মন নিয়ে খেলে

রোজ আমাদের কেনাকাটা করতে মুদি দোকান, কাঁচাবাজার, স্টেশনারি দোকান কিংবা মার্কেটিং করতে বড় বড় শপিং মল গুলোতে যেতে হয়।  আমাদের সকলের ক্ষেত্রেই এমন ঘটনা ঘটতে দেখা যে, একটি সুনির্দিষ্ট জিনিস কেনার উদ্দেশ্যে দোকানে গিয়েও একাধিক জিনিস কিনে বাড়ি ফিরতে হয়। এমনকি বেশির  ভাগ ক্ষেত্রেই দেখা যায়  বাড়তি কেনা পণ্যটি হয়তো সেই অর্থে ততটা আমাদের কেনার আবশ্যক ছিল না এবার একটু বর্তমানের বাজার ব্যবস্থার আরেকটু…

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[inventivaindia]

What is the Decoy Effect and why is the smartest buying decision you made is not actually the smartest?

What is the Decoy Effect and why is the smartest buying decision you made is not actually the smartest?

There is a product pricing strategy used by businesses called the “decoy pricing effect” strategy, which we come across in our everyday lives, but somehow, we fail to notice it simply because we are not aware of it. “The Economist” which is one of the worlds famous business magazines uses the same strategy to attract customers to use them to increase their revenue. Now that we have talked about…

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[warningsine]

[foxandco]

The Decoy Effect: How You Are Influenced To Choose Without Really Knowing It

The Decoy Effect: How You Are Influenced To Choose Without Really Knowing It

Author Article

Price is the most delicate element of the marketing mix, and much thought goes into setting prices to nudge us towards spending more.

There’s one particularly cunning type of pricing strategy that marketers use to get you to switch your choice from one option to a more expensive or profitable one.

It’s called the decoy effect.

Imagine you are shopping for a Nutribullet blender. You…

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[o-behave]

BIAS OF THE MONTH: Decoy Effect

THE ACT OF CHOOSING MATTERS

Including a similar but inferior third option can tip people’s preference towards the slightly better option. 

A group of students were given the following magazine  subscription options: 

Online only: $59  

Print only: $125  

Print + Online: $125

When all three options were given, 84% chose the most expensive  “combined option”. When the inferior, ‘decoy’, middle option was  taken away and tested with a second group of students, interest in Print + Online dropped to just 32%.

Unseen Opportunity

Include a range of choices – some of which may be less attractive – in order to drive interest in other options.

References:

Ariely, D. (2010). Predictably irrational: The hidden forces that shape our decisions.  New York: Harper Perennial.