The Power of the Decoy Effect: How Your Choices Are Influenced Ever felt like you were gently pushed toward picking a particular option? That’s the magic of the Decoy Effect—a strategic psychological tactic businesses use to shape your decisions. Picture this: You’re at the movies buying popcorn: Small: $5 Large: $10 Chances are, you’d choose the Small to save money. Now, imagine this twist: Small: $5 Medium: $9 Large: $10 Suddenly, the Large looks like the obvious winner—just $1 more than the Medium! That “Medium” isn’t there to sell; it’s designed to make the Large seem like a fantastic deal. Why does this happen? The Decoy Effect works because we instinctively compare options side by side instead of evaluating their actual value. By introducing a cleverly priced “middle” option, businesses subtly guide you toward their desired choice. What Entrepreneurs Can Learn: Incorporate this into your pricing strategy to nudge customers toward decisions that align with both their needs and your goals. It’s a win-win, done right. Subscribe to ‘Siliconnector’ Telegram channel for insights and news from Silicon Valley and the Tech world: https://t.me/siliconnector
Good point!
Founder Oblivion, Sports and Performance Psychologist, Football Coach and Student Of The Game | AI extensive development
2wFunny you point this out, because I'm always going for the middle option. 🥸