How Grocery Stores Use Decoy Pricing to Sell More

Pricing Power Podcast with Fexingo: How Businesses Set Prices, Raise Margins, and Win Customers · Sep 5, 2026 · 11m · transcript

We break down the psychology of the decoy effect in grocery retail, using the classic example of popcorn sizing at movie theaters and extending it to supermarket loyalty programs. Lucas and Luna explore how adding a third, slightly worse option changes consumer behavior, making the target product look like the rational choice. We also look at how private label brands use this tactic to capture margin without lowering prices on national brands. This is a deep dive into behavioral economics as applied to everyday shopping.

#PricingPower #BehavioralEconomics #DecoyEffect #GroceryRetail…