Attraction Effects : Professors at Duke University offered... - Deepstash

Attraction Effects: Professors at Duke University offered 2 beers at $1.80 & $2.60. 33% chose the cheaper product.

A 2nd group was also offered a $1.60 beer. 0% chose it, but 47% now chose the $1.80 beer. Products priced at extremes can change the demand for other products.

Extremeness Aversion: Research by Tversky & Simonson across 6 categories found that consumers tend to shy away from the most expensive & least expensive options. In conditions of uncertainty, most consumers will opt for something in the middle.

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claudiu_florea

A sparkling curious mind

William Poundstone offers many examples of how our perceptions of prices vary depending on cues, context and contrast.

The idea is part of this collection:

Behavioral Economics, Explained

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