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Conducting effective interviews
Identifying the right candidates for the job
Creating a positive candidate experience
The Decoy Effect
The decoy effect is a 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.
Consumers will tend to have a specific change in preference between two options when also presented with a third option that is asymmetrically dominated
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How Decoys Work
Through manipulating these key choice attributes, a decoy steers you in a particular direction while giving you the feeling you are making a rational, informed choice.
The decoy effect is a form of "nudging" - defined by Richard Thaler and Cass Sunstein as "any aspect o...
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Asymmetric Dominance
- Consumers change their preference between two options when presented with a third option (the "decoy") that is "asymmetrically dominated".
- The decoy is priced to make one of the other options much more attractive.
- It is "dominated" in terms of perceived value (quantity, quali...
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Related collections
Other curated ideas on this topic:
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 attractive. The decoy is not intended to sell, just to nudge consumers away from the competitor and towar...
The decoy effect
It is a cognitive bias: we tend to have a specific change in preferences between two options when also presented with a third option that is asymmetrically dominated.
This is the secret agent in more decisions than we could imagine. It even helps us decide whom to date...
3. Decoy Effect
The decoy effect occurs when a person’s choice between 2 items changes when a third option, asymmetrically dominated, is introduced.
This third option is made easy to discard.
The decoy option is added to nudge the customers towards the intended target option...
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