How the Decoy Effect Supercharges Your Sales

Why More Choices Can Mean More Sales

Sometimes, adding an extra option makes everyone buy the one you want.

You’re offering two plans—Basic at $10 and Pro at $20—but most prospects pick Basic.
Introduce a third “Decoy” option—let’s call it “Mid” at $17.5—then watch Pro skyrocket.

Even though Mid is never the best deal on paper, it makes Pro look like a steal.

What Is the Decoy Effect?

The Decoy Effect (aka the “asymmetric dominance effect”) is a cognitive bias that happens when you add a third option (the decoy) designed to make one of the original options look better.

• Target: the option you want prospects to choose (e.g., your Pro plan)
• Competitor: your lower-price or lower-value baseline (e.g., Basic)
• Decoy: a deliberately inferior version of the target (e.g., Mid)

People don’t evaluate options in isolation. They compare side by side—and the decoy reshapes their perception.

How It Works

1. Anchor Perception
   The decoy sets a mental anchor close to the target.
2. Highlight Value
   When customers see Target vs. Decoy, Target looks like a bargain.
3. Drive Choice
   They feel smart choosing Target because it clearly dominates the decoy.

Popcorn Example

• Small popcorn: $5 (100g)
• Large popcorn: $9 (200g)
• Add Medium popcorn: $8 (180g)

Suddenly, the $9 large feels like a no-brainer—even if nothing else changed.

Real-World Applications

• SaaS Pricing: Basic / Pro / Pro+Decoy
• E-commerce Bundles: Single / Bundle A / “Decoy” Bundle B
• Membership Tiers: Free / Premium / Premium+Decoy

Each decoy should be close enough to the target in price or features but clearly worse.

3 Steps to Implement in Your Business

1. Identify Your Target
   Pick the product or plan you want to push.
2. Design Your Decoy
   Make it slightly more expensive or feature-poor than your target.
3. Test & Tweak
   A/B test with and without the decoy. Monitor conversion lift, average order value, and customer feedback.

Watch Out for Overkill

• Too Many Options: More than 3–4 can overwhelm.
• Transparency: Don’t trick—people will notice if the decoy is obviously useless.
• Brand Fit: Ensure the decoy aligns with your value proposition.

Final Thought

The Decoy Effect isn’t just a “gimmick.”
It’s a psychology-backed lever to guide choices—ethically.
Add the right decoy, and customers will see your best offer as the smartest one.

Sometimes, less (really) is more—when you add just one extra.

Ready to experiment with decoys?
Time to see your numbers climb.