Juntae DeLaneFounder, Functn · Go Beyond The Ticket

Unlock a top marketing strategy of 2024...

Name: Unlock a top marketing strategy of 2024...
Uploaded: 2024-06-17T22:00:30+00:00
Duration: 24 s
Channel: Juntae DeLane
Description: In this brief marketing tip, JUNTAE KAI DELANE explains the decoy effect—a pricing strategy that presents three product versions (e.g., small, medium…

17 Jun 2024 · 0 min

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In this brief marketing tip, JUNTAE KAI DELANE explains the decoy effect—a pricing strategy that presents three product versions (e.g., small, medium, large popcorn) with the medium and large priced closely together. This subtle price positioning nudges consumers to choose the larger, higher‑margin option. He cites familiar brands such as Apple and McDonald's that employ this tactic and encourages viewers to adopt the same approach in their own offerings.

Always offer three versions of your product in movie theaters. You must have seen that they offer three sizes of popcorns small, medium and large. But why? This is called the decoy effect in marketing, they price the medium and large sizes at very similar pricing, so people would rather buy the large instead of the medium size. Many big brands like Apple, McDonald's, etc. Use this trick and you can use it too.