> Never heard of decoy effect. Always referred to this phenomenon as “anchoring”
Correct. The example they gave is anchoring.
Anchoring typically looks like $10-$25-$50, and they want you to buy the $25 item. Sometimes the presence of the $50 item can have zero sales, but the $25 item will sell better than if the options were just $10 and $25.
Decoy would be more like $10-$40-$50, and they want you to buy the $50 item and the $40 item has less than it’s sticker value. Decoy is commonly used to encourage people to buy at the top of their budget range (as one example).
Correct. The example they gave is anchoring.
Anchoring typically looks like $10-$25-$50, and they want you to buy the $25 item. Sometimes the presence of the $50 item can have zero sales, but the $25 item will sell better than if the options were just $10 and $25.
Decoy would be more like $10-$40-$50, and they want you to buy the $50 item and the $40 item has less than it’s sticker value. Decoy is commonly used to encourage people to buy at the top of their budget range (as one example).