Every retailer is interested in increasing their profit or increasing sales of a particular product at one time or another. One way to do this is to use decoy products. When added to a selected set, a decoy product is an option that transforms the attraction associated with other alternatives to the collection and causes the customer to change their choice from one item to more expensive or profitable. It is not intended to sell, to move customers to something by showing them another worst way.
What is the effect of the decoy?
When people talk about the “decoy effect,” they refer to asymmetric decoys, which operate as “asymmetrically dominated.” This means that fraud is entirely governed by a targeted option, something you would like the customer to choose, in terms of imaginary value, but managed by only one component, a “competitor” thing. The decoy effect is sometimes called the “asymmetric dominance effect.” It is also called “the effect of attraction” because it causes preference transition from one to the same but higher.
One of the best-known examples was cited by psychologist Dan Ariely, who realized something strange about the subscription options for The Economist magazine:
Online registration for only $ 59
Print and online registration for $ 125
Only print registration for $ 125
He wondered why the magazine would offer the option to print only for the same price as the print and online, so he asked his 100 readers to choose one-third; 16 opted for online registration only, and the other 84 image and online option. He took only a printing subscription, which no one had ever selected, and asked the students to re-elect. Of these, 68 chose the cheap internet option only, and 32 chose the print and internet option. The printing trick alone had made 52 people buy the most expensive option and earn an estimated profit of $ 3,432.
The effects of deception were first explained by scholars Joel Huber, John Payne, and Christopher Puto, [2] who showed that deceptive devices could increase sales of such items as beer, cars, restaurants, movies, and TV sets. Their results have been a significant turning point because they challenge the notion that introducing a new product could take a market share from an existing one.
