[mhoad]

Apologies for the blatant plug but for anyone interested, I also just wrote about another SaaS pricing strategy yesterday here: http://technicalmarketing.io/cro/saas-pricing-technique-deco... I figured it might be helpful for some people here.

[read]

It's pretty impressive the Decoy Effect practically doubled choice selection. Thank you for this.

Two questions:

(1) would trying this with products that don't include anything physical alter the effect?

(2) how ethical is it to use the Decoy Effect?

[svasan]

Decoy is unnecessarily pejorative here. This is known as price anchoring. Anchoring is an influence tactic based on human psychological bias.

I am not really sure why ethics would come into this discussion. Do ethics come into picture when you are considering/selecting databases or programming languages?

edit: rephrased.

[ABS]

FYI with Ghostery your article is completely empty, I had to pause it to see the text

[notastartup]

can you help me explain how this might work for metered pricing? for example generating 1000 reports costs $100 so 1/10 of that would be $10. What would a decoy pricing plan look like?