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Rohith R

I help businesses to... • 3m

Imagine you’re buying pizza for your friends, and you’re faced with these options: Small: 4 slices for ₹100 Medium: 8 slices for ₹200 Large: 12 slices for ₹260 (with extra cheese!) Now, let’s rule out the Small pizza—it’s obviously not enough for a group. That leaves you with two choices: Medium or Large. At first glance, the Large pizza seems like the smarter choice. For just ₹60 more than the Medium, you get 4 extra slices and extra cheese. It feels like a no-brainer, right? Yes, But you are tricked. This pricing strategy isn’t random. The Medium option is used to trigger you into buying the Large. Why? Because if there were only two options Small and Large, There is a chance that you might just choose the Small pizza and grab other lower-priced snacks to stay within your budget. But with the Medium option in play, it suddenly makes the Large look like a much better deal in comparison. This is called a decoy effect, the Medium serves as the decoy to steer you toward spending more.

1 replies5 likes

Replies (1)

Vishu Bheda
•

Medial • 3m

Absolutely, Starbucks also uses the decoy effect in its pricing strategy.

0 replies1 like

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