Pricing is vital in a business. If you charge too high, fear no one will buy. On the other hand, charging a low price will actually make your business bad.

So, what should I do?

If I said, you can charge a high price without fearing the item won’t sell, would you believe it? That’s what big businesses like Starbucks, Pepsi etc. are doing.

In psychology, the marketing tricks they do are called the Decoy Effect.

Do you know what is meant by the Decoy Effect and how can this marketing trick influence customers to buy more of your product? Check out the details below.

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Marketing Decoy Effect Tricks

Imagine you buy a blender for 1.2 million rupiah with 900 watts of power and an additional 5 accessories. However, there is another blender for 2.1 million rupiah 1200 watts plus 12 accessories. Which of the two types do you choose?

If you look at efficiency, a blender with a higher price provides up to 35% more efficient electricity, even though the price is 70% more expensive than the first blender. Is this efficient?

In the midst of this confusion, you find another blender with a price of 1.7 million rupiah 1000 watts and an additional 9 accessories. This middle option will usually be a wise choice and is taken by the customer.

Have you been in this case? Congratulations, that means you’ve been hit by the Decoy Effect marketing trick.

What is the Decoy Effect?

Customers are always looking for it to be safe. In that sense, they don’t want to buy things that are too expensive but also too cheap (for reasons of prestige). To mediate this, they decided to look for an intermediate option. That’s the Decoy Effect.

According to a psychologist named Barry Schwartz, the Decoy Effect occurs because of the complexity or difficulty in making decisions and avoiding reckless decisions. The term used by Barry is tyranny or paradox of choice.

In short, to reduce concerns about buying too expensive products, customers will begin to simplify decisions based on their selfishness towards rationality, namely lower prices and also more quantity.

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This marketing trick is great for your business. Because, you can prevent customers from buying products at the lowest price. The trick is, you have to give them two options first. After they think, you can throw in the third option.

By using this strategy, you will most likely get maximum results. Because, customers will definitely divert their orders to the last option.

This trick is done by Starbucks. They use it in determining the size of the coffee cups that are sold to customers. For more details, read the article below.

So, are you ready to use the Decoy Effect to generate bigger profits? This marketing trick is free, you know, like, which gives you free invoicing and accounting software for life. Click here to join.