The Decoy Price Audit
Add a strategically inferior option to make your target option appear more attractive by comparison.
Explanation
The decoy effect occurs when adding a third option makes one of the original two more appealing. The decoy is designed to be clearly inferior to your target option but similar enough to create comparison. This nudges customers toward your preferred choice by making it look like obvious value. Most effective when decoy is priced just below target with noticeably fewer benefits.
Real-World Example
Economist subscription: Web-only $59, Print-only $125, Print+Web $125. The print-only option exists solely to make print+web seem like incredible value. Movie theater: Small $3, Medium $6.50, Large $7 sizes designed to push customers to large. Many chose medium until large was added.
How to Apply
Identify your target tier/product. Create decoy with 80% of target benefits at 90% of price, making target seem like obvious choice. Position decoy option visibly but don't oversell it. Test different decoy configurations. Remove decoy if it accidentally becomes popular choice.