The decoy effect: how you are influenced to choose without really knowing it - Deepstash
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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

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 style of pricing strategy that marketers use to urge you to change your choice from one choice to a costlier or more profitable one.

It is called the “Decoy Effect.”

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How Apple uses the decoy effect

How Apple uses the decoy effect

Apple unveiled its new iPod priced

16GB for $229. 32GB for $299. and 64GB for $399.

In other words, double the storage for a further $70; you also get more features.

However, if you choose to double the capacity (32GB to 64GB), you pay a further $100, but you don’t get extra fea...

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169 reads

Relative value for money.

Relative value for money.

Imagine you are in a movie house and now are searching for a cola drink. You have got two options. The cheapest is at Rs 200/-for 200 ml.

The pricier at Rs 400 for 450 ml.

Which one you select will rely upon some assessment of their relative value for money.

It is not immediatel...

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Beware of sets of three.

Beware of sets of three.

The decoy effect is simplest when there are only three options in play: target, competitor, and decoy. Whether you’re out shopping, or you’re evaluating political candidates, try and notice when things take place in groups of three — there could also be a decoy within the mix.

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How do decoys work?

How do decoys work?

When consumers have many alternatives, they often experience “choice overload.” In an endeavour to cut back on this anxiety, consumers tend to simplify the method by selecting only a pair of criteria (say price and quantity) to see the simplest value for money.

Through manipulating these ke...

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Decoy Effect

Decoy Effect

The decoy effect is defined as the phenomenon whereby consumers change their preferences between two options when presented with a third option — the “decoy.”

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Decoys work subconsciously.

Decoys work subconsciously.

ven though we believe that we make all of our decisions consciously and deliberately, in reality, we are often unaware of things that have influenced our choices or how they need to affect us.

Decoys justify our choice.

When people make decisions, their goal isn’t to select the right ...

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Don’t trust your gut.

Don’t trust your gut.

Your thinking style plays a role in how likely you’re to be laid low by the decoy effect. One study, which involved over 600 participants, found that the people most affected by a decoy were those who relied on intuitive reasoning.

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Systemic effects

Systemic effects

Decoys are a commonly used tool by businesses and corporations to “nudge” us into buying more quickly than we’d like.

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Individual effects

Individual effects

The decoy effect can cause us to spend and consume more than we’d like. When a decoy option is present, we tend to make decisions based less on which option will suit our purposes and more on what seems like the most advantageous choice.

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vixn

Brand Consultant

Talks about the one of the most Important Marketing Weapon of the industry.

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