The Illusion of Benefit: How Sellers Manage Our Choices

Sometimes we think that we make purchasing decisions independently. But in reality, the choice may be subtly "highlighted" by marketers. One of the cleverest techniques is the decoy effect, which makes us see benefits where there are actually none.

What is the Decoy Effect

The decoy effect is a marketing technique in which a third, deliberately less attractive product is added to two products. Its purpose is to highlight the advantages of the target option and push the buyer towards the desired choice by the seller.

Typically, the decoy sells worse than the others or is not bought at all. However, it is not intended for profit — its role is purely psychological.

Why This Technique Works

When a person finds it difficult to choose between two options, anxiety and a sense of uncertainty arise. Adding a "third" option simplifies the comparison: one of the products starts to seem obviously more advantageous.

Research shows that at this moment, areas of the brain associated with processing visual information and emotional evaluation are activated. As a result, decisions are more often made intuitively rather than rationally.

A person focuses on the advantageous parameters and ignores the rest. Once the choice is made, anxiety decreases — and the buyer finds it easier to part with their money.

Examples of the Decoy Effect

False Discount

Next to the current price, an inflated "old" price is indicated and crossed out. This figure serves as a decoy: the buyer feels that they are getting a significant benefit.

Focus on the Most Expensive Product

There is a smartphone for 10,000 rubles (A) and a model for 40,000 (B). Most people choose the cheaper option.

Then a third smartphone (C) appears for 35,000 rubles, which has worse specifications than B. Against its background, the model for 40,000 starts to look like a reasonable choice.

Focus on the Mid-Priced Option

Wine for 500 rubles (A) and for 1,200 (B). Most people choose A.

A product C appears for 1,400 rubles with similar characteristics to B. Now the option for 1,200 seems more advantageous than it was before.

Where the Decoy Effect is Applied

Practically everywhere there is a range of several offers:

food and ready-made meals;
electronics and smartphones;
cars;
furniture and household goods;
apartments;
tours and subscriptions.

Interestingly, the effect works even in hiring employees. Employers compare candidates with each other, and the "third wheel" can unconsciously change their choice, enhancing the attractiveness of one of the candidates.