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The trick that makes you overspend

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https://www.bbc.com/worklife/article/20190801-the-trick-that-makes-you-overspend

bbc.com

The trick that makes you overspend
As we head into 2020, we're running the best, most insightful and most essential Worklife stories from 2019. Read all of the year's biggest hits here. When you buy a cup of coffee, you might have noticed that of the three size options - small, medium and large - the medium-sized serving often costs almost as much as the large.

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The Decoy Effect

It is a marketing tactic used to nudge you into purchasing a higher-priced variant of a product or service.

The Decoy effect can be applied in recruitment, polls, elections, or anywhere else ...

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The extra-large glass

A well-designed decoy can shift our decision making between two options as much as 40%.

For example, we are more likely to buy the large glass of juice at the counter when we have been pro...

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The Unattractive Option

  • The Unattractive Third Option (The Decoy) has no real value in itself and is just placed to sway the decision maker towards the higher-priced option.
  • The Decoy's only purpose is to ma...

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Emotions in the Decoy effect

Higher levels of testosterone, leading to impulsive behavior, leads to more susceptibility to the Decoy Effect.

Intuitive thinkers tend to fall more for it, along with people that join in gro...

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Dating and Voting

The Decoy Effect can influence our dating choices, as the person who may not be attractive, can appear handsome to us in the presence of a slightly less attractive friend, as our mind will subconsc...

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Fine-tune your judgement

Whether you are choosing a pair of sneakers or deciding on an insurance plan, it is always better to keep a watchful eye on the options provided.

Learn to fine-tune your judgement to not be d...

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SIMILAR ARTICLES & IDEAS:

The decoy effect

The decoy effect

It happens when consumers change their preference between two options when presented with a third option, or decoy.

The decoy is priced to make one of the other options much more attra...

How decoys work

When consumers are faced with many alternatives, they often experience choice overload that increases anxiety and hinders decision-making.

Consumers try to reduce this anxiety by selecting only a couple of criteria (say price and quantity) to determine the best value for money.

A decoy steers you in a particular direction while giving you the impression that you are making a rational, informed choice.

Decoy example in the market

Consider the price of drinks at a well-known juice bar: a small (350 ml) size costs $6.10; the medium (450 ml) $7.10; and the large (610 ml) $7.50. The medium is a slightly better value than the small, and the large better still. The medium is designed to be the decoy, steering you to see the biggest drink as the best value for money.

If you buy the biggest, was it because you made a sensible choice, or have you been manipulated to opt for bigger than intended?

Breadcrumbed At Work

Breadcrumbed At Work

Breadcrumbing is a corporate practice in which the employee is provided the bare minimum or less than optimal information, feedback, rewards by the manager, keeping it a one-way communication.

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The Opposite Of Empowered

  • The employee cannot invest in a career if there is no visible sign of a career in the first place. The employee feels disposable and undervalued in the organization, with the manager ghosting him at times.
  • Important information is thrust upon the employee, rather than taking his opinion first.
  • There is no interest of the employer in employee development or empowerment.

Every Decision In Life Becomes a Trade-Off

Every Decision In Life Becomes a Trade-Off

... and boils down to what we give up to attain something. Our mindsets are inclined towards pleasure and resistive towards pain. We normally like to think in terms of gai...

Good and Bad Decisions

Decisions are a cost-benefit analysis of risking something small for the opportunity to gain something big.

  • Good decisions can be: Exercising, meditating for 10 minutes daily, finding the courage and striking up a conversation with someone, applying for jobs that you may or may not get.
  • Bad decisions can be: lying or pretending to someone, driving unsafely, sending angry text messages, or staying up late drinking before an important meeting or exam in the morning.

Trade-offs and Life Values

Trade-offs are not something as simple as flipping a coin. Our values guide us towards what we want in life, and it is not the same for all. Example: Buying a house has a trade-off of mortgage for the next ten or more years. This is subjective and depends on what we value in life.

Indecisive people suffer because they don’t know their inner values and what they care about.

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