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Marketing Concepts
#
PS-006

Decoy Effect

Psychology
the concept

Adding a third option that is clearly worse than one of the others makes that better option look like the obvious choice. Also called asymmetric dominance.

When to use

On tiered pricing, package and bundle pages when you want to steer buyers toward a specific plan.

Applies To
Owned
Paid
In Action (the tape)

The Economist's print-only option priced the same as print plus digital; a medium popcorn priced just under the large; three-tier SaaS pricing built to push the middle plan.

the ref's call
7

Effective in pricing tables for SaaS, retail and services. Yellow flag if the decoy exists only to confuse rather than clarify.