How Decoy Pricing Traps Your Budget

The Pricing Marketing Podcast with Fexingo: Price Anchoring, Bundling, and Conversion Pricing · Sep 2, 2026 · 11m · transcript

We examine the decoy effect in subscription pricing, using a specific SaaS example where a mid-tier option is deliberately priced to make the premium tier look like a bargain. Lucas breaks down why consumers often skip the logical middle choice when a 'decoy' is introduced, and Luna explores the ethical implications of this design pattern. We also look at how this principle applies to physical retail bundles and service tiers, revealing why your brain consistently chooses the more expensive option when presented with three choices instead of two.

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