Latest / The Pricing Marketing Podcast with Fexingo: Price Anchoring, Bundling, and Conversion Pricing
How a Three-Tier Menu Pushes You to the Middle Option
In this episode of The Pricing Marketing Podcast, Lucas and Luna explore the decoy effect through the lens of a classic three-tier pricing menu. Using The Economist's famous subscription offer from 2009—$59 for digital-only, $125 for print-only (a decoy), and $125 for print-plus-digital—they explain how a deliberately unattractive middle option nudges customers toward the most profitable choice. They trace the effect's roots in Dan Ariely's 'Predictably Irrational' experiments and apply it to modern examples, including a streaming service's tiered plans and a…
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