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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, which is usually more than they really need. These subtle “nudges” are not meant to be manipulative and restrictive.
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The curse of knowledge is a cognitive bias, which occurs when people fail to consider that others don’t have the same background knowledge or information as they do.
Someone knowledgeable in a particular field might find it difficult to put themselves into a beginner’s shoes (or someone who...
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Have you felt that whenever you’re trying to remember someone you met in the past, you find it difficult to recall them from memory but recognise them easily through looking at their pictures?
These scenarios exemplify Recognition over Recall. It’s easier f...
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Let’s say you go to buy a watch, and the first one you like costs $150, which exceeds your budget, soon after you see a watch that costs $125, this new price seems reasonable now, even though this too might exceed your budget, however, as compare...
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After reading Gates’ and Musk’s life stories, people seem to fall for the successful dropout myth , because if they can do it, why can’t you?
These stories might expose a fallacy in judgement because in reality, for one success story...
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Digital marketing at dentsu. Invested in the symbiosis of marketing, psychology, and design. Photographer at heart.
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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...
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 eff...
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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