decoy effect
Third option trick
The decoy effect is a phenomenon where adding a third, inferior option makes one of the original two options more attractive.
A medium popcorn at $6.50 seems overpriced until the theater adds a large at $7—suddenly medium looks reasonable and large looks like a bargain.
Marketers exploit this to steer consumers toward higher-margin choices.
Also called the asymmetric dominance effect.
- anchoringFastening securely to position
- cognitive biasSystematic deviation from rationality
- loss aversionSetbacks sting more than gains please
- nudgingLight push to prompt
- marketing strategyScheme for promoting goods
upselling · behavioral economics · consumer behavior · priming · heuristics · decision fatigue · cross-selling · demarketing · menu design · salience · cognitive dissonance · delaying tactic · confirmation bias · selective attention · zero-sum game