Latest / The Pricing Marketing Podcast with Fexingo: Price Anchoring, Bundling, and Conversion Pricing
How a Price Decoy Makes the Middle Option Look Irresistible
In this episode of The Pricing Marketing Podcast, Lucas and Luna explore the decoy effect in pricing — the psychology that makes a strategically placed third option shift demand toward your target product. Using the classic Economist subscription case study (digital-only at $59, print-only at $125, print+digital at $125), they break down why the decoy works, how to design one without it feeling manipulative, and real examples from movie theater popcorn sizes to software tiering. They also discuss ethical boundaries and when a decoy backfires. A practical, numbers-driven look at one of…
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