Sometimes a buyer feels that they are making a completely independent and rational choice. But in reality, the decision has already been subtly 'highlighted' by the seller. One of the most popular techniques is the decoy effect.
What is the Decoy Effect
Sometimes a buyer feels that they have carefully compared everything, calculated everything, and made a rational decision. But the truth is that at that moment, they have already been gently nudged in the desired direction. Moreover, this was done so subtly that they didn't even notice the manipulation.
The decoy effect is a marketing technique in which one product is made to seem 'advantageous' by means of another, deliberately less attractive one. The goal is simple: to create a sense of great value and guide the person toward the purchase that benefits the seller.
This technique is usually employed when the buyer is torn between two options or is unsure whether to make a purchase at all. Then a third product—the decoy—appears in the lineup. It costs almost as much as the more expensive item but clearly appears weaker in terms of characteristics.
The paradox is that the decoy itself is often hardly purchased at all. It is not needed for profit but for comparison. Its task is to make the target product as attractive as possible.
Why the Brain Falls for the Decoy
There are few studies on this topic, but they show interesting things. When a person sees an additional option for comparison, the areas of the brain responsible for visual analysis and intuitive decisions are activated.
In simpler terms, the decoy makes the desired product more noticeable. It literally 'stands out' against the backdrop of the less favorable option. And at that moment, we are more likely to make a decision not based on cold calculation but intuitively.
There is also another important point—anxiety. When there are no clear criteria for choice, a person experiences internal discomfort. We dislike being in uncertainty for too long. The decoy helps to quickly focus on convenient parameters for comparison.
And we choose. At that moment, anxiety decreases, a sense of clarity emerges—and we are ready to pay.
How This Looks in Real Life
False Discount
Next to the current price of a product, a higher 'old' price is often indicated and crossed out. This is the decoy.
A person sees the supposedly previous price and feels a sense of gain. Even if the product was never sold at that price, an illusion of savings is created.
Interestingly, not everyone reacts to such a trick. According to various data, between 10% and 39% of buyers change their decision under the influence of the decoy. But for businesses, this is more than enough.
Focus on the Most Expensive Product
Imagine:
There is a smartphone for 100 euros. There is a more advanced option for 400 euros.
Many choose the first one—it’s cheaper and seems like a reasonable compromise.
Then a third smartphone appears—for 350 euros. In terms of characteristics, it is closer to the budget option but costs almost as much as the premium one.
Now the comparison is not between 100 and 400 euros, but between 350 and 400. And the additional payment of 50 euros starts to seem justified. As a result, a person ends up choosing the model for 400 euros, even though they initially did not intend to spend that much.
Focus on the Mid-Range Option
Suppose there is wine in the store:
— a bottle for 5 euros; — a bottle for 12 euros.
Most choose the cheaper option.
But another bottle of the same brand appears— for 14 euros, with similar characteristics.
Now the option for 12 euros looks like a 'reasonable choice': the quality is almost premium, but without the extra cost. And sales of the mid-range option increase.
Where the Decoy Effect is Applied
The short answer is—almost everywhere.
This is how products, technology, cars, furniture, apartments, tours, subscriptions, services, and even ready-made meals in restaurants are sold.
Interestingly, the effect works not only in retail. Research on hiring employees has shown that employers choose candidates not only based on their qualities but also in comparison with others.
When a 'weak' candidate appears on the list, they can unexpectedly strengthen the position of one of the strong candidates. And it is precisely that candidate who ends up being chosen.
How Not to Fall for the Trick
It is difficult to completely protect oneself from the decoy effect—it is built into our psychology. But its influence can be reduced.
It is important to define clear criteria for yourself in advance: which parameters of the product are truly important. Then the comparison will be based on your rules, not those imposed by the seller.
Do not make serious decisions based on emotions. Give yourself a pause. Very often, after a day, it turns out that the purchase was not so necessary after all.
Pay attention to hidden costs. Sometimes an attractive price is just the beginning, and then you have to buy accessories or pay for additional services.
It is helpful to consult with people who can objectively assess the situation. An outside perspective often helps to notice manipulation.
If it comes to online purchases, study reviews, track price dynamics, and compare offers on different platforms. It often turns out that a 'grand discount' remains at the same level for months.
The decoy effect does not appear as a deception. It works softly and subtly. But understanding the mechanism already gives an advantage: you start to see where real value ends and where the game with your instincts begins.
