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How Choices Shape Decisions: The Power of the Decoy Effect 🎯




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Ever wondered why you end up buying the “medium” popcorn at the theatre instead of the small one? That’s the Decoy Effect at work—a pricing illusion so sneaky it makes you think you’re choosing wisely. Businesses add a third “decoy” option just to pu
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“The Decoy Effect: How Brands Trick You into Choosing More” The Decoy Effect is a pricing strategy where businesses introduce a third, less attractive option (the “decoy”) to subtly push customers toward a more profitable choice. It plays on human p
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It’s All in the Wording: How the Framing Effect Shapes What We Buy” The Framing Effect is a cognitive bias where people make decisions based on how information is presented rather than the facts themselves. In business, marketers use this to shape p
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The Framing Effect shows how the same fact can feel entirely different depending on how it’s presented. When a brand says “95% success rate,” customers feel confident — but if it says “5% failure rate,” they hesitate, even though both mean the same.
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Thorndike’s experiment with cats showed how the environment shapes behavior. Cats learned to pull a lever to escape, reinforcing that the most obvious and rewarding option drives choice. In choice architecture, this applies as: 1. Environment influ
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“Brilliance by Association: How the Halo Effect Elevates Brands and Sales” The Halo Effect is a cognitive bias where our overall impression of someone or something influences how we feel about their specific traits. In business, this plays out when
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