Latest / The Pricing Marketing Podcast with Fexingo: Price Anchoring, Bundling, and Conversion Pricing
The Decoy That Makes You Switch Phone Plans
Why do phone carriers always seem to offer a plan you'd never pick? It's a decoy, and it's designed to steer you toward their most profitable option. In this episode, Lucas and Luna unpack the specific math behind a real-world three-tier pricing strategy used in the wireless industry. They walk through how a deliberately unattractive middle option makes the expensive plan look reasonable, and how this same decoy effect shows up everywhere from cinema popcorn to software subscriptions. Lucas explains the data: when carriers add a decoy tier, uptake of the premium plan jumps by…
The skinny
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