Pricing Psychology & Revenue Models

Decoy Options: Driving Customers Up-Tier

Understand how an intentionally inferior option can steer choice toward higher‑margin tiers. Learn to design decoys ethically so customers feel guided, not tricked.

A decoy is designed to be asymmetrically dominated—clearly worse than the ______ option but closer to it than to the other.

random

cheapest

status‑quo

target

The decoy makes the target look superior by comparison. It shouldn’t be attractive on its own.

In a good‑better‑best lineup, placing a slightly overpriced middle plan that is inferior to the best plan can ______ selection of the best plan.

eliminate

increase

guarantee

reverse

The decoy shifts relative comparisons, nudging customers toward the higher‑margin choice. It reframes what feels like value.

For a decoy to work, it must be similar on key attributes so customers naturally ______ options.

bundle

compare

ignore

average

Comparability is essential; unrelated features won’t create the dominance relationship. Similarity invites side‑by‑side judgment.

A common mistake is making the decoy too attractive, which can ______ margin or cannibalize the target.

fix

erode

guarantee

eliminate

If the decoy becomes a deal, customers pick it instead of the intended target. That undercuts the strategy.

Ethically, decoys should be disclosed and useful; pure bait options that no one should buy risk ______.

consumer backlash

tax credits

automatic upgrades

inventory growth

Customers punish manipulative lineups. Trust loss outweighs short‑term gains.

Decoy designs typically move preference toward the option it most closely ______.

bundles

discounts

opposes

resembles

By being close to the target, the decoy makes the target look like the smarter choice. Distance reduces the effect.

In SaaS, a decoy might add minor features at a much higher price to make the true best plan look ______.

feature‑poor

experimental

obsolete

high‑value

Small add‑ons at a big premium make the best plan’s bundle look efficient. The contrast sells value per dollar.

Decoys work best when differences are easy to see—use a clear ______ to highlight where the target dominates.

testimonial

carousel

comparison table

FAQ article

Transparent tables visualize dominance cleanly. Clarity supports both ethics and effectiveness.

If customers are highly price‑sensitive and comparison‑shopping across sites, decoy impact tends to ______.

fix

decline

guarantee

skyrocket

External anchors dilute your internal framing. Cross‑site comparisons weaken within‑page decoys.

A lightweight A/B test for decoys randomizes the presence of the decoy and measures lift in ______ selection rate.

refund rate

traffic share

support tickets

target plan

Measuring changes in target‑plan picks quantifies effectiveness. Holdout cells validate causality.

Starter

You see how decoys steer choices. Work on dominance clarity and ethics.

Solid

Nice—your decoys are comparable and transparent. Keep an eye on margin and cannibalization.

Expert!

Expert—your lineups guide to the target without trickery. You validate lift with clean tests.

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