To explain the decoy effect further, let me tell you…
““To explain the decoy effect further, let me tell you something about bread-making machines. When Williams-Sonoma first introduced a home “bread bakery” machine (for $275), most consumers were not interested. What was a home bread-making machine, anyway? Was it good or bad? Did one really need home-baked bread? Why not just buy a fancy coffee-maker sitting nearby instead? Flustered by poor sales, the manufacturer of the bread machine brought in a marketing research firm, which suggested a fix: introduce an additional model of the bread maker, one that was not only larger but priced about 50 percent higher than the initial machine. Now sales began to rise (along with many loaves of bread), though it was not the large bread maker that was being sold. Why? Simply because consumers now had two models of bread makers to choose from. Since one was clearly larger and much more expensive than the other, people didn't have to make their decision in a vacuum. They could say: “Well, I don't know much about bread makers, but I do know that if I were to buy one, I'd rather have the smaller one for less money.” And that's when bread makers began to fly off the shelves.2””
About This Quote
This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.
The decoy effect shows that adding a clearly inferior option can steer consumers toward a target product by making it seem more attractive.
In simple terms: A worse option can make the desired one look better.
Key Takeaway
Use strategic comparisons.
Themes
marketing
decisionmaking
behavioral economics
Mood
analytical
curious
Type
educational
practical
When to use this quote
- product pricing
- advertising
- sales strategy
- menu design
Key Concepts
choice architecture
psychology
consumer behavior
Questions to Reflect On
- How might you design a decoy ethically?
- When have you noticed a decoy influencing you?
A Different Perspective
Effectiveness depends on consumer awareness and rationality.