Latest / The Pricing Marketing Podcast with Fexingo: Price Anchoring, Bundling, and Conversion Pricing
How a Single Decoy Price Changes Your Entire Choice
In this episode of The Pricing Marketing Podcast, Lucas and Luna explore the power of the decoy effect in pricing strategy. Using the classic example of a movie theater popcorn sizes and a more modern case from a SaaS subscription tier, they break down how adding a strategically priced third option can shift customer choices toward a higher-margin target. Lucas walks through the psychology behind asymmetric dominance—why a slightly more expensive option that is clearly inferior in value makes the target option look like a steal. Luna pushes back with questions about when decoys fail and…
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