Did You Know?

Discovered by marketing professor Joel Huber in 1982, the decoy effect is a psychological pricing trick that makes you prefer one option by introducing a third, slightly worse alternative. Here's how it works: When choosing between a small coffee ($3) and large ($5), most people split 50/50. But add a medium for $4.50? Suddenly 80% pick the large. The medium is the "decoy" – strategically priced to make the large look like a steal. Companies use this everywhere: popcorn at movies, subscription plans, phone storage options. You think you're choosing freely, but the decoy is nudging you toward the pricier option. Next time you see three choices, ask yourself: which one am I being pushed toward? . #businessgrowth #businessgrowth