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The Decoy Effect
Often an extra choice is given to the buyer (looking at a set of options) to tilt the purchase in favour of a particular option. The decoy option is only there to shift the mindset, and is also called the asymmetrically dominated option.
The decoy effect changes the perception of the offer in the eyes of the buyer.
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The Framing Effect Of Costs
Framing is a bias-inducing technique that seems to tilt buyer preferences by providing the same information in different ways. It makes people see the same data in such a way that it affects their choices.
Example: A $10 watch with $5 shipping charges may be a turn-off...
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Free Shipping: Shopper Psychology
A study done on online shopping behaviour showed that 70 percent of the shoppers abandon their shopping basket, leaving the app/website. The main reason for this behaviour is the unexpected costs, especially the shipping fee, which many buyers see as a sunk cost.**
Fre...
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The Subscription Choice Experiment
The famous Economist subscription study showed the following set of options:
- Option A: Online subscription Only, $59
- Option B: Print subscription Only, $125
- Option C: Online and Print, $125
Subscribers were selecting Option C a whopping 84 percent of the ...
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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...
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...
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