“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 psychology by making one option look like a better deal simply through comparison. For example, a popcorn stand may offer: • Small: ₹100 • Medium: ₹180 • Large: ₹200 Most people skip the small, and the medium seems overpriced compared to the large. The decoy (medium) nudges customers toward the large — increasing sales and profit. Brands like Apple, Starbucks, and many SaaS companies use this trick to influence purchasing decisions without customers even realizing it.
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