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Using the Decoy Effect to Increase Sales: A Case Study by Dan Ariely

Dan Ariely suggests using the decoy effect to help consumers determine what they want and make the premium option more attractive.

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Dan Ariely conducted a study in which he presented two different pricing structures for The Economist to two groups of 100 MIT students. The first group was presented with three options: online only for $59, print only for $125, and both print and online for $125. The second group was presented with only the first two options. Ariely found that the middle option (print only) influenced the students' decisions and made the premium option (print and online) seem like a better deal. This is known as the decoy effect. Ariely suggests using this technique to help consumers determine what they want and make the premium option more attractive.

https://twitter.com/alexgarcia_atx/status/1609203743500767233?s=46&t=svdVL3unNeNwXFrgvYjZEw

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