Enter the Decoy Effect. It's a fascinating cognitive bias where consumers change their preference between two options when presented with a third, "decoy" option that is asymmetrically dominated.
Essentially, the decoy isn't meant to be chosen, but to make one of the other options look significantly more appealing by comparison.
Here’s a classic example:
Imagine you're buying popcorn at the cinema:
Option A: Small popcorn for $3
Option B: Large popcorn for $7
Many might pick the small.
Now, let's add a decoy:
Option A: Small popcorn for $3
Option B: Medium popcorn for $6.50
Option C: Large popcorn for $7
Suddenly, the large popcorn ($7) looks like a much better deal compared to the medium ($6.50) – for just 50 cents more, you get a "large"! The medium option, the decoy, makes the large appear incredibly attractive, even though its absolute price hasn't changed.
Why this matters for your content & offers:
Pricing: Guide customers towards your preferred tier.
Product Bundles: Make a premium package irresistible.
Service Offerings: Highlight the true value of your mid-to-high-tier services.
It's not about trickery, but about understanding human psychology to present choices that resonate and drive value.
Have you seen the Decoy Effect in action, or used it effectively in your own strategies? Share your insights below! 👇
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