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A/B Testing Idea #27 - Create a decoy-effect by displaying an extra product

Tactic_Create a decoy-effect by displaying an extra product

Description

Displaying a decoy product at a higher price will change people's perception of the perceived value of your other products on offer.

Offering three options instead of two, with the highest price product not offering noticeably more value, your customers will be then more likely to choose the middle product as it will seem like the best value deal amongst the three. The higher priced product will make the middle one seem much more reasonable and like a good deal in comparison.

People will feel like they are getting better value for money because they are "saving" a lot in comparison to the higher-priced (decoy) product.

Inspired by Nick Kolenda 

Principles

  • Decoy Effect (Huber; Payne & Puto, 1982)

The Research

Decoy Effect

The Decoy Effect is the way in which adding an additional “decoy” item to the table when a customer is making a purchase decision can ultimately influence which decision they make as it is common for us to make use of comparisons to decide the value of something and whether we want to buy it.

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