The decoy effect is a marketing technique that relies on people’s tendency to make choices based on comparisons. This technique is often used to sell products by presenting two options that are similar, but not identical, and then adding a third option that is significantly different from the first two. The goal is to make the third option seem more attractive in comparison, even if it isn’t the best overall choice.
There are a few key things to keep in mind when using the decoy effect in marketing. First, it’s important to ensure that the three options are truly different from one another. If they’re too similar, people may not be swayed by the decoy option. Second, it’s important to make sure that the decoy option is realistic. If it’s too good to be true, people may not believe it. Finally, it’s important to keep the overall goal in mind. The decoy effect should be used to nudge people in the right direction, but it shouldn’t be used to trick them into making a choice that isn’t in their best interest.