The Subscription Choice Experiment - Deepstash

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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 time, due to the dominated option B (the decoy), which cost the same as option C but offered less. With Option B removed, Option C was selected just 32 percent of the time.

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MORE IDEAS FROM THE SAME ARTICLE

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.**

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.

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