There's one particularly cunning type of pricing strategy that marketers use to get you to switch your choice from one option to a more expensive or profitable one. It's called the decoy effect, and the phenomenon happens when consumers swap their preference between two options when presented with a third option. Gary Mortimer, a Professor of Marketing and Consumer Behaviour at the Queensland University of Technology, joins the show to discuss.
Tags:
- business
- Christopher Puto
- Dan Ariely
- Gary Mortimer
- Joel Huber
- John Payne
- Nutribullet blender
- The Australian
- The Economist
- University of Queensland
- asymmetric dominance
- asymmetrically dominated
- behavioural economist
- decoy effect
- effect
- heuristic
- human behaviour
- manipulated
- marketing
- nudging consumers
- regularity condition
- the attraction effect
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