Latest / The Pricing Marketing Podcast with Fexingo: Price Anchoring, Bundling, and Conversion Pricing
How Decoy Pricing Makes You Pick the More Expensive Option
In episode 119 of The Pricing Marketing Podcast, Lucas and Luna unpack the decoy effect — a pricing tactic that makes one option look so good you forget it was designed to be chosen. They start with a 2015 experiment from The Economist that boosted subscriptions 43% with a single decoy tier. Then they trace the effect through a real-world case: how an indie filmmaker used a decoy DVD tier to push 78% of buyers toward a premium digital bundle. They walk through the psychology — asymmetric dominance, the 'ugly sibling' principle — and explain why decoys work best when the target is…
The skinny
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