| Have you ever heard of decoy marketing? If not, then | | | | Because you compared it to the first machine. |
| you want to be sit up and pay attention here because | | | | So what has it got to do with you? Loads! |
| this copywriting tip will change the fate of your | | | | By using decoy marketing, you can easily inflate your |
| business for the good. | | | | price... or at least influence your prospects to choose |
| I first heard of decoy marketing in an insightful book | | | | the higher priced choice. To explain it, let's use an |
| titled "Predictably Irrational" by Dan Ariely. In the book, | | | | example. |
| Dan talks about... well, how irrational we humans. As | | | | In "Predictably Irrational", Dan Ariely used the example |
| much as you and I like to think otherwise, we are no | | | | of a subscription option for the Economist. |
| exceptions. To truly understand the power of decoy | | | | Option 1: $59 online 1-year access. |
| marketing, let me just explain to you the psychology | | | | Option 2: $125 1-year print edition |
| that made it work. | | | | Option 3: $125 for both online and 1-year subscription. |
| As humans, our mind cannot process any data in | | | | Now, in a test he did, Dan found that when you |
| absolute terms. Meaning, our mind works by making a | | | | removed option 3, 68% of the people chose option 1 |
| series of comparison to judge a products value. For | | | | for obvious reason - it's cheaper. |
| example, unless you're an avid collector yourself, you | | | | The interesting thing happens when you add option 3: |
| wouldn't know how much an antique sewing machine | | | | 84% of the people chose option 3! What happened |
| would cost... simple because you didn't know of any | | | | there? Well, that's decoy marketing in action - the |
| other antique sewing machines. | | | | decoy being option 2. |
| You have nothing to compare it to... and so you can't | | | | The reason, he explained, is due to the fact that our |
| come up with a number. | | | | mind judge the value of the option though comparison. |
| Now, let's say you go to an antique shop and saw that | | | | Option 3 seems like a no-brainer - it's the exact same |
| its price tag is $500. What that does is that since that's | | | | price as option yet includes digital version. Under |
| the first number you are exposed to a number that is | | | | comparison, it's the best deal. |
| associated to the sewing machine, you would naturally | | | | How can you your business use this kind of |
| accept it as it is. | | | | information? There are a lot of application of this and |
| And the next time you see another antique sewing | | | | one of the way is the one outlined here. If the |
| machine, and its price tag is let's say, $1000, you would | | | | Economist is using, I'm pretty sure it can benefit your |
| gasp at how expensive it is... | | | | business immensely too! |