Latest / The Pricing Marketing Podcast with Fexingo: Price Anchoring, Bundling, and Conversion Pricing
How Decoy Pricing Made a Popcorn Sale Go Viral
In this episode, Lucas and Luna dissect the viral popcorn pricing experiment that became a textbook case for decoy pricing. They trace the story from a convenience store in rural Michigan that sold small, medium, and large tins of popcorn — with the medium priced almost identically to the large. Customers overwhelmingly chose the large, but when the medium was removed, sales dropped. Lucas explains the behavioral economics behind it, including the compromise effect and asymmetric dominance. Luna brings in a parallel from a SaaS company that used a decoy tier to boost mid-tier subscriptions by…
The skinny
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