The Decoy Effect

An extra option can change the comparison.

01 / UNDERSTAND

The idea

A comparatively unattractive option can make another option look more appealing. The effect depends on how people compare alternatives. A useful pricing experience should help people choose for their needs rather than exploit a contrived comparison.

An unattractive alternative can make another option appear better by comparison. Consider a small and large popcorn: adding a medium close to the large price can change how the large is judged without changing its contents or price. Use the concept to recognise how comparison works; do not fabricate a misleading offer or an unavailable plan.

02 / RECOGNISE

See it in real products.

Examples of how the principle can appear in an interface.

HellofreshEXAMPLE 01

Compare unit price across real options

HelloFresh displays a per-serving price for different box sizes. A larger option may appear more economical, although total cost and likely use still matter.

Hellofresh · Interface example
PretEXAMPLE 02

Make the alternative calculation inspectable

Pret compares a subscription with paying for individual drinks. The comparison is only useful if the assumed purchase frequency and subscription terms are clear.

Pret · Interface example
Size and price comparisonEXAMPLE 03

How a comparison changes the choice

A size-and-price comparison illustrates how the available alternatives can change a choice. Check whether one option is dominated by another; three price tiers alone do not establish a decoy effect.

Example source

03 / CONNECT

Why it matters.

The available comparison set can influence which option seems worth buying. A change in perceived value does not mean the chosen option better serves the user.

Possible influences to investigate, rather than guaranteed outcomes for every product.

04 / APPLY

Put it into practice.

  1. 01

    Make each plan useful to someone

  2. 02

    Compare like-for-like costs

  3. 03

    Let people inspect limits and exclusions

05 / EXPLORE WITH UPSLIDE

Apply it with Upslide.

Use a practical guide, read a deeper explanation.

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Reviewed by the Upslide team.