Decoy Effect

The decoy effect describes how preferences between options can shift when a third alternative is introduced. A decoy is designed to make one of the original choices look comparatively attractive on relevant attributes, such as price and included features. This is sometimes called an asymmetric dominance effect. It is a behavioral hypothesis about choice under particular conditions, not a guaranteed conversion technique.

For example, a cleaning business may compare a basic service, an enhanced service, and a third package whose price and features make the enhanced option appear more appealing. The actual service packages must still offer truthful value and transparent terms. Introducing a deliberately confusing tier, hiding fees, or exploiting vulnerable customers may damage trust and create regulatory risks. The effects also vary by audience, context, and how choices are presented.

A responsible experiment would state the hypothesis, show the options clearly, evaluate which customers choose each package, and track satisfaction or complaints after purchase. It should not treat a higher-priced selection alone as evidence of customer benefit. When there are only two available options, the conventional three-option decoy setup may not apply. This entry describes choice architecture and comparative evaluation, distinct from a generic landing-page copy deck or price anchoring alone.