10th June 2019 - No Comments!

THE PSYCHOLOGY OF MARKETING

PART 1: THE DECOY EFFECT.

Your decisions don’t belong to you.

Whilst most people would say that they think for themselves, more often than not they really don’t. Even if you are adamant that you finalise your own decisions, you are wrong.

FACT: THE BRAIN IS THE MOST COMPLEX ORGAN IN THE BODY.

 

It controls your decisions, regulates your body, controls your movement, literally everything in your body is controlled by the brain - yet, it’s incredibly easy to hack. Knowing how to hack and manipulate the brain to control your customer’s decisions is an extremely powerful skill. So if you don’t want to learn how to acquire the keys to unlocking someone else’s mind, close the tab.

 

The decoy effect is one of the most commonly used marketing techniques used, in addition, it’s also really simple with minimal effort needed.

So what is the decoy effect?

The decoy effect is where you take a product and split it into three possible options. Now, the reasoning behind the name is that one of the products is simply a decoy to create an upsell. To illustrate, the cinema sells two sizes of popcorn: small and large. The small goes for £3.00 and the large goes for £7.00. Due to the large contrast between the two sizes, automatically, the large feels too much for the customer thus making them agree on buying the small because they don’t want to waste both food and money. Now, here is when the decoy effect is thrown into play. The cinema decides to add a third option which is a medium sized popcorn at £6.50; this is the decoy. When the options are compared, the small seems too small, whereas the medium becomes more suited to the customer's needs… it's not too much and it’s not too little. However, due to the pricing of the medium at £6.50 compared to the large at £7.00, the large becomes more appealing and better value for money, resulting in the customer choosing the large.

How to Implement decoy marketing. 

Roll out an A/B test in your advertisements. You can use the above example for all most any industry. Roll out one ad set as you would normally then roll out another advert using the above theory. The results will speak for themselves.

Published by: Vast Digital in Journal

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