Decoy Effect
In 2009, The Economist magazine ran an online pricing page with three options:
* Option A: Web – $59 for a one-year subscription to economist.com, online access only.
* Option B: Print – $125 for a one-year subscription to the print edition of The Economist.
* Option C: Web & Print – $125 for both a one-year subscription to the print edition and online access to economist.com.
Dan Ariely, a professor of behavioral economics, ran a study that showed that 16% chose Option A, 0% chose Option
matt-rickard.com
I didn't know about the newspaper 'decoy' but I've heard the popcorn one loads of times and always point this out to my partner when we go to the cinema. It doesn't make me very popular, haha. I'm surprised people still fall for it tbh. But while they are still falling for it then businesses should definitely utilise it more.
Great strategy!
Very interesting. Thanks for sharing.
Very interesting gonna try it on my saas pricing
Super interesting, thanks for sharing !
Thanks for sharing!
I will just say: WOW
my mind is blown, and I am not kidding...
I think decoy Effect varies from company to company or product to product. What if we need only one thing and that relates to option B? Why should I waste my money? I don't think so now a days people fall for such pricing plan. We have chat box and support available where they directly ask you for the custom plan or what things they need.
Strategy!
Yup! Marketing 101. We always like to think we're getting a good deal.