Decoy effect - marketing technique / consumer preferences

Having studied, Psychology and cognitive behaviors, this is where most of the consumers, especially in supermarkets fall prey.

Have you ever heard about this marketing concept - DECOY EFFECT?

The consumers have a cognitive bias while shopping or buying in which they will tend to have a specific change in preferences between two options when also presented with a third option that is asymmetrically dominated.

This is used mostly in products or services to make sure that the product the seller want to sell is priced in such a way as a third option to make the consumer tend to buy them.

Let me give an example:

Today's world, we depend more on the online meetings and webcasts. We need to choose a better one which suits our requirement and not heavy on our purse.

You go to a service provider, who you feel is good and want to see the options, Your requirement is unlimited time per session, 20 sessions per month. The options available with the service provider are:

Option A : 20 sessions/month and 2 hours max per session - Rs.350

Option B : 30 sessions/month and unlimited hours max per session - Rs.500

Normally, you will go for Option A, as it fits your requirements well. Now, the intention of the service provider is to sell more of Option B. To achieve that, what he will do is, introduce another option, say Option C.

Option A : 20 sessions/month and 2 hours max per session - Rs.350

Option B : 30 sessions/month and unlimited hours max per session - Rs.500

Option C : 20 sessions/month and 3 hours max per session - Rs.450

The consumer will look at the Option B and C. For Rs.50 he is getting a better deal. So, he will go for Option B. Here Option C is the decoy.

Which one will you buy given the following options for soap "Super"?

25 gms - Rs.30

50 gms - Rs.50

75 gms - Rs.60

Please let me know, which is the decoy here? Did you fall in for the decoy recently?😉 

Next time, when you see Buy 2 get 20% off, look for the decoy.

Watch the following video:

Share in the comment, if you have seen any decoy recently.