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    Decoy Effect: A Marketing Phenomenon

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    GUNJAN GUPTA
    The document discusses the decoy effect, a marketing phenomenon where introducing a third, asymmetrically dominated option (the decoy) can influence consumers' preferences between the original two options. Experiments first showed that people's preferences would change between two options when presented with this third decoy option. Businesses then began using this effect by strategically positioning product options to steer consumers toward particular choices. The summary provides examples of how the decoy effect is used in pricing strategies for beverages, electronics, and magazine subscriptions to influence what consumers select.

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    Decoy Effect: A Marketing Phenomenon

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    GUNJAN GUPTA
    271 views18 pages
    The document discusses the decoy effect, a marketing phenomenon where introducing a third, asymmetrically dominated option (the decoy) can influence consumers' preferences between the original two options. Experiments first showed that people's preferences would change between two options when presented with this third decoy option. Businesses then began using this effect by strategically positioning product options to steer consumers toward particular choices. The summary provides examples of how the decoy effect is used in pricing strategies for beverages, electronics, and magazine subscriptions to influence what consumers select.

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    Decoy Effect

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    The document discusses the decoy effect, a marketing phenomenon where introducing a third, asymmetrically dominated option (the decoy) can influence consumers' preferences between the original two options. Experiments first showed that people's preferences would change between two options when presented with this third decoy option. Businesses then began using this effect by strategically positioning product options to steer consumers toward particular choices. The summary provides examples of how the decoy effect is used in pricing strategies for beverages, electronics, and magazine subscriptions to influence what consumers select.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    271 views18 pages

    Decoy Effect: A Marketing Phenomenon

    Uploaded by

    GUNJAN GUPTA
    The document discusses the decoy effect, a marketing phenomenon where introducing a third, asymmetrically dominated option (the decoy) can influence consumers' preferences between the original two options. Experiments first showed that people's preferences would change between two options when presented with this third decoy option. Businesses then began using this effect by strategically positioning product options to steer consumers toward particular choices. The summary provides examples of how the decoy effect is used in pricing strategies for beverages, electronics, and magazine subscriptions to influence what consumers select.

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    of 18

    DECOY EFFECT

    A Marketing Phenomenon

    Submitted By-
    Ankit Pawar - B008
    Deeksha Gauba- B016
    Gunjan Gupta- B019
    Siddharth Gupta- B055
    Surya Srivastava- B061
    SPILL THE TEA

    ₹ 5 ₹ 15 ₹ 20

    Small Medium Large


    What is Decoy Effect ??

    The Decoy Effect (also called the asymmetrical dominance effect) occurs
    when people tend to have a change in preference between two options
    when a third, asymmetrically dominated option is presented.
    How did the idea come into existence?

    • EXPERIMENTS

    • REGULARITY
    CONDITION

    • HYPOTHESIS
    HOW DOES IT
    WORK?
    THE MAGIC THE OUTCOME
    TRIO
    THE • ZERO
    • TARGET SUBCONCIOUS REALISATION
    NUDGE
    • COMPETITOR
    • INVISIBILITY
    • DECOY • BEHAVIORAL
    IMPACT

    • MAKING A
    CHOICE
    How to implement Decoy
    Effect
    DAILY LIFE EXAMPLES
    DECOY

    300 250 100


    Decoy
    Effect in
    Business
    Beverage STARBUCKS
    s

    The Decoy’s purpose is to


    change perceptions of the
    other options, not sell.

    Small Medium Large


    Rs.220 Rs.330 Rs.370
    Decoy Effect in Politics
    A B C
    Voter's
    Perception

    Strong on national security

    Fresh face in Washington

    Chances of winning the election


    Online Subscription Pricing - The
    Economist

    The Economist improved their sales by 43%


    Decoy In Technology!

    The pricing and the features


    build a gap between the
    cheap and the most
    expensive option.

    $699 $999 $1099


    Let’s talk about Stocks!
    Impact on Decision Making..
    IMPACT ON
    CONSUMERS
    'Paradox of choice'.

    A rational, informed
    choice.

    To determine the value for


    money product
    How can you Figure out
    avoid it? your
    preferences
    ahead of
    time

    Don't trust Only buy


    your guts what you
    need

    Beware
    of the
    sets of
    three
    Conclusion

    A scientifically proven method


    for logical choices and justifying
    our own decisions.
    THANK
    YOU

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