Are you one of those who getsget the largest popcorn at the theater and thinks they getthink they're getting a good deal? Did you ever thinkwonder why people think like that? Is it because by paying only 50 cent more theyyou can get the largest choice instead of just large?a larger size by paying only 50 cents more? Sorry for tellingto tell you this, but this is just a tricking technique used most commonly by marketing teams around the world. The thing I’m mentioning here is called “Decoy Effect”. Decoythe “decoy effect is,” the phenomenonphenomenon in which customers tend to change their preferences when they are presented with a third price-asymmetric option.
Believe it or not, the Decoy Effectdecoy effect is used extensively in marketing area. It means that the decisions that you mademake to buy something is alteredthings are altered by little mind tricks. I want to share anothera study for you to easily understand the phenomenon. So, Professor Dan Ariely did an experiment on MIT students, about their subscription preference infor Economist magazine.
Print subscription looks like an unintelligent option to choose, huh? I mean, you can choose a better option without paying something extra. And inIn this experiment, people thought like that, and the majority of them (84) chose Weba web and Printprint Subscription. The truth behind this print subscription option is that, it iswas there just to mislead(decoy)mislead/decoy customers to buyinto buying a web and print onesubscription. ButHowever, the experiment iswas not over yet for the professor. He wanted to see the exact effects of decoyedthe decoy option, so he removed the print subscription option.
So, what happened? Even if nothing changed
with the other two options, with the absence of the print subscription option, the company lost over 3000 dollars!$3,000! That means they lost %4343%
of their total revenue. Although nobodyno one bought Print Subscriptiona print subscription, it was increasingincreased the profit of the company by making Webthe web and Print Subscriptionprint subscription more appealing.