The Decoy Effect - Deepstash

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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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MORE IDEAS FROM THE SAME ARTICLE

The famous Economist subscription study showed the following set of options:

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.

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.**

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