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Latest / The Pricing Marketing Podcast with Fexingo: Price Anchoring, Bundling, and Conversion Pricing

How a Price Tier Makes You Pick the Middle Option

Ever notice how a three-tier pricing menu almost always pushes you toward the middle option? It's not an accident — it's the decoy effect, and it's one of the most reliable tools in a marketer's kit. In this episode, Lucas and Luna walk through a real-world example from a streaming service that added a premium tier at $29.99 and watched its $14.99 plan suddenly look like a bargain. They break down the psychology: how a deliberately unattractive high price makes the mid-tier feel reasonable, not cheap. They also look at the limits — when decoys backfire and when customers…

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