Post by rajupramanik7755 on May 20, 2024 10:20:07 GMT 7
1. Why is it called the Decoy Effect? Have you ever felt like changing your mind between options 1 and 2, after a 3rd option was added? In this situation, you are subject to the decoy effect – a phenomenon in which a user's purchasing decision is influenced when an unsuitable third option is added, forcing the user to prioritize between two options. Choose available. decoy effect Source: Internet 2. How the Decoy Effect works. The name decoy effect comes from the fact that hunters often train a skilled bird to be a "prey", making their fellow birds easily trapped. In business, the "Decoy Effect" is applied frequently. Purpose: To direct customers to buy the products the business wants, with a happy and voluntary attitude. To be able to make the most of the decoy effect, businesses need to choose the products they want to boost sales. Then, make sure that product has the biggest USP, always with the highest face value.
See more: What is USP? 5 steps to building a USP for a successful UK Email List product (cleverads.vn) The most important step, we need a "prey" product with the same face value (or lower) but does not bring as much value as the selected product. Thus, the "Decoy Effect" will cause customers to consider the more expensive option that brings the highest value to your business. decoy effect Source: Internet. One of the famous applications of the “Decoy Effect” is The Economist newspaper, when they introduced periodic newspaper subscription packages. Online: $59 Print package: $125 Combo package: $125 As a result, up to 90% of users chose the combo package. The customer thought he was getting the product at a bargain price, while the appearance of the $125 print package was just a "bait" for the newspaper to sell the combo package with complete customer satisfaction. 3.
The effectiveness of the Decoy Effect in Marketing and Business. A surge in sales revenue Successfully applying the "Decoy Effect" will show businesses a sharp increase in sales revenue. Because when influenced by this effect, customers will choose the product they consider "best" in terms of quality and price, not the product they originally intended to buy. As a result, customers will often choose a product that costs more than they intended. Communication strategy - a push to change the situation. This is a commonly used strategy in Marketing, seen as a nudge that subtly changes the buying situation. Without manipulating or threatening customers, the effect simply takes advantage of cognitive behavioral tendencies of humans and motivates customers to choose a specific option through marketing tactics. See more: Typical Marketing strategies for beginners (cleverads.vn) The decoy effect – the preference for the number on the left.
See more: What is USP? 5 steps to building a USP for a successful UK Email List product (cleverads.vn) The most important step, we need a "prey" product with the same face value (or lower) but does not bring as much value as the selected product. Thus, the "Decoy Effect" will cause customers to consider the more expensive option that brings the highest value to your business. decoy effect Source: Internet. One of the famous applications of the “Decoy Effect” is The Economist newspaper, when they introduced periodic newspaper subscription packages. Online: $59 Print package: $125 Combo package: $125 As a result, up to 90% of users chose the combo package. The customer thought he was getting the product at a bargain price, while the appearance of the $125 print package was just a "bait" for the newspaper to sell the combo package with complete customer satisfaction. 3.
The effectiveness of the Decoy Effect in Marketing and Business. A surge in sales revenue Successfully applying the "Decoy Effect" will show businesses a sharp increase in sales revenue. Because when influenced by this effect, customers will choose the product they consider "best" in terms of quality and price, not the product they originally intended to buy. As a result, customers will often choose a product that costs more than they intended. Communication strategy - a push to change the situation. This is a commonly used strategy in Marketing, seen as a nudge that subtly changes the buying situation. Without manipulating or threatening customers, the effect simply takes advantage of cognitive behavioral tendencies of humans and motivates customers to choose a specific option through marketing tactics. See more: Typical Marketing strategies for beginners (cleverads.vn) The decoy effect – the preference for the number on the left.