use the decoy effect to secure higher prices

$1,999 outsells $1,799 Apple offered three 13-inch MacBook Pros – the basic model for $1499; the intermediate model for $1799; and the premium model for $1999. In this case, the intermediate model was a ‘decoy’, driving consumers to buy the premium model. Consumers did not want to buy the ‘cheapy’, and since the premium was […]

$1,999 outsells $1,799 Apple offered three 13-inch MacBook Pros – the basic model for $1499; the intermediate model for $1799; and the premium model for $1999. In this case, the intermediate model was a ‘decoy’, driving consumers to buy the premium model. Consumers did not want to buy the ‘cheapy’, and since the premium was only $200 more than the intermediate offering felt ‘why not pay the extra $200?’ This was a highly successful strategy for Apple.Photograph vendor Shutterstock was offering 4 packages – 10 images for $29; 50 images for $99; 350 images for $169; and 750 images for $199. In this case, the 350 images for $169 was the decoy. If the consumer needed more than 50 images per month, the 350 images package feels unreasonable because for $30 more they can enjoy more the twice as many images. The consumer is drawn to the more expensive package. The…

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Five Tips For Reducing
The Cost Of Branding.

Burning money on branding is more common than most marketers think. Because few businesses truly understand what a brand is and how branding works, advertising agencies, branding agencies and design studios have become expert at spending their client’s money without effective accountability.

Burning money on branding is more common than most marketers think. Because few businesses truly understand what a brand is and how branding works, advertising agencies, branding agencies and design studios have become expert at spending their client’s money without effective accountability.

1. Get out of the boardroom.

Perhaps the two most concerning issues about branding are the lack of understanding about what brand and branding are and the propensity to develop brands in the boardroom, perhaps with the help of a consultant.....

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