#221 Psychology Of Pricing - The Decoy Effect

I stumbled upon a fascinating concept known as the "Decoy Effect"
in pricing psychology. After diving into an academic paper, I
discovered that adding a deliberately overpriced third option in
your pricing strategy can profoundly influence consumer choices.
This "decoy" option isn't meant to be sold but to change how
customers perceive the other two options. The real magic of the
decoy effect is that it doesn't require more effort or changes to
your offerings. It simply tweaks the perception of your existing
options. I'm now considering implementing this concept in my
business strategies and believe it can be applied across various
industries. Understanding consumer psychology in pricing can be a
game-changer for businesses. 





Read the "Adding Asymmetrically Dominated Alternatives:
Violations Of Regularity & The Similarity
Hypothesis", academic paper, Graduate School of Business
Administration, Duke University, Durham, North
Carolina: https://apps.dtic.mil/dtic/tr/fulltext/u2/a101132.pdf





Read "The Decoy Effect – Everything
You Need To Know", written by Kristina
Radova: https://insidebe.com/articles/the-decoy-effect/





Read "How the psychology of pricing influences our
choices", written by Jennifer
Clinehens: https://medium.com/choice-hacking/how-the-psychology-of-pricing-influences-our-choices-84e9dc939e31





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