Digital psychologyAttention011

Decoy Effect

Add an option nobody should pick and the option beside it starts to look obvious.

What it is

Preferences between two options shift when a third, clearly inferior option is added. The decoy is priced or specified so it is dominated by the target, which makes the target look like the smart choice. Nobody buys the decoy. That is its job.

The research

Offered a web-only subscription at $59 or print-and-web at $125, most students chose web-only. When a print-only option at $125 was added, most chose print-and-web.

Ariely, 2008

How to use it

Three tiers, one dominated

Price the middle plan so the top plan is a small step up for a large step in value.

Size the decoy honestly

The decoy still has to be a real, purchasable option. A fake one is a dark pattern and people can tell.

Use it in proposals

A three-option proposal with a deliberately thin middle makes the recommended scope the natural pick.

Related

Sources that shaped this entry: growth.design, Kolenda.io.

Let’s bring your idea to life

Tell me about your business and what you want digital marketing to do for it. I’ll come back with an honest view on whether I can help.

Or reach me directly at ben@compoundgrowth.au