Positioning decoy pricing to shape how customers perceive value

Pricing strategy is primarily based on behavioral and economic psychology. Decoy pricing strategy leverages psychology to help you sell specific products more effectively. A deeper understanding of decoy pricing facilitates a better grasp of behavioral psychology and analogous pricing strategies.

Decoy pricing, also known as the asymmetrical dominance effect, is a strategic pricing method that influences consumer choice towards a more expensive or profitable option. 

The tactic involves introducing a third product option (the decoy) that is less attractive than the other two available choices but similar tolike one of them in many respects. This decoy is typically priced to make one of the other options look more appealing. 

For example,…