Price Decoy Marketing: How Businesses Influence Consumer Choices
Businesses use many strategies to encourage customers to buy their products, and one of the most interesting methods is price decoy marketing. This strategy is based on psychology and consumer behavior rather than simply lowering prices. A price decoy is an option added to make another product seem like a better deal. While customers believe they are making a logical decision, the pricing structure is often carefully designed to guide them toward a specific choice. Price decoy marketing works because people rarely judge value completely on its own. Instead, consumers compare options side by side. Businesses understand this behavior and create pricing plans that influence comparisons. The decoy option is usually not meant to sell well by itself. Its real purpose is to make another option appear more attractive and valuable. A common example can be seen in subscription services. Imagine a company offers three plans. The first plan is a basic digital subscription for five dollars. ...