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I remember seeing a previous article on HN talking about how you should have 3 products to sell instead of 1, because it helps to anchor the customer when they
by ricaurte 16y ago
I remember seeing a previous article on HN talking about how you should have 3 products to sell instead of 1, because it helps to anchor the customer when they make a decision. That makes a lot of sense when you consider the study shown in the article about how people valued two books in isolation and then relative to each other.
One thing to possibly take away is that if you have a more "featureful" product (like the 20,000 entries v 10,000 entries) that's not as nice, people will be willing to pay more for it, if it is next to a nicer "less featureful" product. Obviously, this might only work in limited domains, like the dictionary example, but food for thought if you're selling your own product or one on eBay. And whether people would actually end up buying the 20,000 word dictionary instead of the 10,000 word dictionary is another question entirely.
- lotusleaf1987 16y agoThat's because it's difficult to evaluate anything in an absolute way. You make decisions relative to each other, based on the information you have at the time. In your example, of selling three products, they usually price the middle product higher to make the third option more attractive by comparison and without the middle product people are more likely to go with the cheaper option. The middle option is the decoy. They don't expect anyone to buy it and they don't really want anyone to, it's just there to give the buyer a reason to make the choice.