Offer a Similar (Yet Expensive) Version
A similar, yet more expensive version of your product will make your existing product seem more appealing.
You might be familiar with a popular study involving three subscriptions to Economist magazine:
- $59 — Digital
- $125 — Print
- $125 — Print and Digital
At first glance, it seems wrong. You can buy the digital and print for the same price as the print subscription.
But alas, it’s not a mistake.
Although nobody chooses the “print” subscription, this decoy option shifts demand toward the “print and digital” subscription — which is more expensive than the digital subscription (Ariely, 2008).
- Ariely, D. (2008). Predictably irrational (pp. 278-9). New York: HarperCollins.