Decoy Effect
Just last month in September 2019 me and my friend cum client Nityanand Gowda went to Singapore to attend *Tony Robbins Unlimited Power Within seminar*.
After we were done with Tony’s 4 day UPW event, we wanted to experience Singapore, so one night we decided to go to see📷 the must visit place, the identity of Singapore Merlion fountain.It was an awesome experience.
After it was done, we decided to walk around the Clarke Quay area nearby which is one of the sought after hangout places in Sigapore. It was past mid night when we saw an awesome juice bar under a beautifully lit bridge. It was so nicely designed, we could not resist ourselves and decided to have mix berry smoothie there.
When I approached the owner sitting at counter to order, he showed me 3 different sized paper cups. He picked up the smallest one and said 4$ making neutral face. Next he picked up another one which was medium in size but bigger than the earlier one and said 8$ and then picked up the Largest of them which was really bigger than the Medium and said with a big smile on his face 9 Dollars.
Though I knew what he was trying to do with us, we still went ahead with the largest Cup because the offer was so irresistible. The largest cup was really large.
There’s an Interesting insight in this experience.
Keep reading
Learning from the story
1. The negligible difference between the prices of 2nd and 3rd options gets your attention.
This is called Decoy Effect. A 2nd option Medium Cup was just a Decoy option. Businesses provide decoy option so that customer can compare Decoy option with an expensive option (and select the expensive one). In the absence of a decoy option, the customer will compare: 4$ vs 9$ – and may probably go with a cheaper option.
But with decoy option, the customer now compares 8$ vs 9$- and most likely selects the expensive option & that’s what we did.
2. You are not supposed to only making quality products & services but also you should not leave any stone unturned when it comes to marketing and selling them.
Questions to ask ourselves
1. What happens when you buy Popcorn Tubs in multiplex?
2. Why does Apple always come up with three versions of iPhone?
3. How do I create products & services in my bouquet, package & communicate effectively to make it an irresistible offer to magnetisemy ideal clients?
If you really want to create right mix of products & services bouquet, package & communicate effectively by making an irresistible offer to magnetise your ideal clients; here’s my personal invitation to our FREE seminar Business On Autopilot
Read what Priyanka Dhruv who is in to Consulting Application Builders on Heavy Vehicles has to say about this seminar.
“Seminar was excellent with a lot of interactive discussions. Relevant examples were used to convey complex points. There was a lot of clarity achieved in my thought process. Thank you for this amazing seminar. Looking forward to year of learning with you”
