Latest / The Pricing Marketing Podcast with Fexingo: Price Anchoring, Bundling, and Conversion Pricing
How a $3 Coffee Explains the Decoy Effect in Pricing
Lucas and Luna break down the decoy effect using a familiar example: a coffee shop menu with small, medium, and large sizes. They explain how a strategically priced decoy option pushes customers toward a higher-profit choice without them realizing it. Drawing on real-world cases like The Economist's subscription offer and movie theater popcorn pricing, they show why adding a seemingly irrelevant third option can dramatically shift buying behavior. Lucas also shares the key numbers: decoy pricing can boost sales of the target item by 20 to 30 percent. The episode ends with a look at how…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.