3 ms·
Never heard of decoy effect. Always referred to this phenomenon as “anchoring”
by financetechbro 2y ago
Never heard of decoy effect. Always referred to this phenomenon as “anchoring”
- csa 2y ago> Never heard of decoy effect. Always referred to this phenomenon as “anchoring” Correct. The example they gave is anchoring. Anchoring typically looks like $10-$25-$50, and they want you to buy the $25 item. Sometimes the presence of the $50 item can have zero sales, but the $25 item will sell better than if the options were just $10 and $25. Decoy would be more like $10-$40-$50, and they want you to buy the $50 item and the $40 item has less than it’s sticker value. Decoy is commonly used to encourage people to buy at the top of their budget range (as one example).
- financetechbro 2y agoReminds me of Apple’s pricing scheme