every day of our life we make two choices whether we’re deciding what to
choices whether we’re deciding what to
choices whether we’re deciding what to have a breakfast or if you just spend
have a breakfast or if you just spend
have a breakfast or if you just spend time with it usually seems to be such a
time with it usually seems to be such a
time with it usually seems to be such a privilege to be able to choose from a
privilege to be able to choose from a
privilege to be able to choose from a variety of different decisions
variety of different decisions
variety of different decisions isn’t it nice time an array of options
isn’t it nice time an array of options
isn’t it nice time an array of options and to choose the one that’s most
and to choose the one that’s most
and to choose the one that’s most appealing perhaps the one that’s the
appealing perhaps the one that’s the
appealing perhaps the one that’s the most economical the one that benefits
most economical the one that benefits
most economical the one that benefits you the most well what if I told you
you the most well what if I told you
you the most well what if I told you that these other options could result in
that these other options could result in
that these other options could result in cognitive biases coming into play and
cognitive biases coming into play and
cognitive biases coming into play and can actually hinder you from making a
can actually hinder you from making a
can actually hinder you from making a well informed decision and what if I
well informed decision and what if I
well informed decision and what if I told you that these other options appear
told you that these other options appear
told you that these other options appear in your daily lives the decoy effect is
in your daily lives the decoy effect is
in your daily lives the decoy effect is a cognitive bias wherein the superfluous
a cognitive bias wherein the superfluous
a cognitive bias wherein the superfluous choice is presented in ordered in in
choice is presented in ordered in in
choice is presented in ordered in in order to influence someone’s decision or
order to influence someone’s decision or
order to influence someone’s decision or in this case it’d be the buyers decision
in this case it’d be the buyers decision
in this case it’d be the buyers decision also known as the asymmetric dominance
also known as the asymmetric dominance
also known as the asymmetric dominance effect this marketing tactic places a
effect this marketing tactic places a
effect this marketing tactic places a strategically priced decoy in order to
strategically priced decoy in order to
strategically priced decoy in order to compel buyers to upsell it’s an easy
compel buyers to upsell it’s an easy
compel buyers to upsell it’s an easy wipe weight to hide over priceless
wipe weight to hide over priceless
wipe weight to hide over priceless unappealing choices with a decoy now the
unappealing choices with a decoy now the
unappealing choices with a decoy now the reason why it works is at its core it’s
reason why it works is at its core it’s
reason why it works is at its core it’s the decoy effect is a phenomenon where
the decoy effect is a phenomenon where
the decoy effect is a phenomenon where instead of choosing and self-interest we
instead of choosing and self-interest we
instead of choosing and self-interest we choose over what values certain things
choose over what values certain things
choose over what values certain things have a situation where there’s no price
have a situation where there’s no price
have a situation where there’s no price attached let’s say there’s an alcohol
attached let’s say there’s an alcohol
attached let’s say there’s an alcohol and there’s a pair some of you may
and there’s a pair some of you may
and there’s a pair some of you may choose one other may choose the latter I
choose one other may choose the latter I
choose one other may choose the latter I personally prefer pears but wouldn’t it
personally prefer pears but wouldn’t it
personally prefer pears but wouldn’t it be strange if there were to be a
be strange if there were to be a
be strange if there were to be a pineapple introduced and if I were to
pineapple introduced and if I were to
pineapple introduced and if I were to switch back to the Apple although this
switch back to the Apple although this
switch back to the Apple although this seems absolutely ridiculous it doesn’t
seems absolutely ridiculous it doesn’t
seems absolutely ridiculous it doesn’t seem to make any sense whatsoever you
seem to make any sense whatsoever you
seem to make any sense whatsoever you can see how this circumstance could come
can see how this circumstance could come
can see how this circumstance could come into play if we would have prices
into play if we would have prices
into play if we would have prices attached
attached
attached let me give you a few Excel
let me give you a few Excel
let me give you a few Excel say you got a text message and it’s from
say you got a text message and it’s from
say you got a text message and it’s from a phone company and they’re talking
a phone company and they’re talking
a phone company and they’re talking about simply both planets and minima
about simply both planets and minima
about simply both planets and minima they’ll offer you three different
they’ll offer you three different
they’ll offer you three different choices I have a quick example here on
choices I have a quick example here on
choices I have a quick example here on the board and – I’m guessing right now
the board and – I’m guessing right now
the board and – I’m guessing right now that a lot of you are calculating the
that a lot of you are calculating the
that a lot of you are calculating the rates in your head so I’ll just simplify
rates in your head so I’ll just simplify
rates in your head so I’ll just simplify it for you for the economy packet each
it for you for the economy packet each
it for you for the economy packet each of gigabyte is worth fifty Terry’s for
of gigabyte is worth fifty Terry’s for
of gigabyte is worth fifty Terry’s for the deluxe package each is worth thirty
the deluxe package each is worth thirty
the deluxe package each is worth thirty turns and finally for the premium
turns and finally for the premium
turns and finally for the premium package each gigabyte is with twenty
package each gigabyte is with twenty
package each gigabyte is with twenty jerks now I’ve said it now what I’m
jerks now I’ve said it now what I’m
jerks now I’ve said it now what I’m sending it up in this way the premium
sending it up in this way the premium
sending it up in this way the premium package looks really appealing but at
package looks really appealing but at
package looks really appealing but at least for me as a student I’m not going
least for me as a student I’m not going
least for me as a student I’m not going to use two gigabytes of data per month
to use two gigabytes of data per month
to use two gigabytes of data per month outside of school really perhaps me
outside of school really perhaps me
outside of school really perhaps me maybe you adults too but you could see
maybe you adults too but you could see
maybe you adults too but you could see this similar situation happening with
this similar situation happening with
this similar situation happening with slightly higher storage offers um the
slightly higher storage offers um the
slightly higher storage offers um the thing is is that this this is the decoy
thing is is that this this is the decoy
thing is is that this this is the decoy effect that is being in play the middle
effect that is being in play the middle
effect that is being in play the middle on the deluxe package is the decoy
on the deluxe package is the decoy
on the deluxe package is the decoy because it is priced slightly closer to
because it is priced slightly closer to
because it is priced slightly closer to the more expensive choice yet it again
the more expensive choice yet it again
the more expensive choice yet it again it offers double the amount of storage
it offers double the amount of storage
it offers double the amount of storage the only purpose the only reason why
the only purpose the only reason why
the only purpose the only reason why it’s there is just to make the premium
it’s there is just to make the premium
it’s there is just to make the premium package more appealing have the deluxe
package more appealing have the deluxe
package more appealing have the deluxe package not bender maybe you’re choosing
package not bender maybe you’re choosing
package not bender maybe you’re choosing from option A or B perhaps you might
from option A or B perhaps you might
from option A or B perhaps you might have considered maybe I shouldn’t be
have considered maybe I shouldn’t be
have considered maybe I shouldn’t be spending so much money you know I don’t
spending so much money you know I don’t
spending so much money you know I don’t really need all this extra data but the
really need all this extra data but the
really need all this extra data but the fact that the deluxe is there it’s just
fact that the deluxe is there it’s just
fact that the deluxe is there it’s just it’s done all it does is just to make
it’s done all it does is just to make
it’s done all it does is just to make the premium package look better now
the premium package look better now
the premium package look better now let’s say after this text message you
let’s say after this text message you
let’s say after this text message you get a little hungry and you decide to
get a little hungry and you decide to
get a little hungry and you decide to stop by at the fast food store these are
stop by at the fast food store these are
stop by at the fast food store these are the options without notice right away is
the options without notice right away is
the options without notice right away is the price of the burger the soda and the
the price of the burger the soda and the
the price of the burger the soda and the fries just by themselves individually if
fries just by themselves individually if
fries just by themselves individually if you were to add them up all together
you were to add them up all together
you were to add them up all together it’s significantly more than the meal
it’s significantly more than the meal
it’s significantly more than the meal so you came in maybe a little hungry
so you came in maybe a little hungry
so you came in maybe a little hungry just wanting a cheeseburger but you
just wanting a cheeseburger but you
just wanting a cheeseburger but you might as well get some soda surprise
might as well get some soda surprise
might as well get some soda surprise better deal right this is what your
better deal right this is what your
better deal right this is what your cognitive biases are telling you that
cognitive biases are telling you that
cognitive biases are telling you that you’re getting a better deal because you
you’re getting a better deal because you
you’re getting a better deal because you add current yourselves to the soft drink
add current yourselves to the soft drink
add current yourselves to the soft drink at the fries price a soft drink is worth
at the fries price a soft drink is worth
at the fries price a soft drink is worth a chirps you think the price is worth 90
a chirps you think the price is worth 90
a chirps you think the price is worth 90 runs in reality if we just have any fast
runs in reality if we just have any fast
runs in reality if we just have any fast food store that just sold those two
food store that just sold those two
food store that just sold those two items individually by themselves thank
items individually by themselves thank
items individually by themselves thank God a business they’re extremely
God a business they’re extremely
God a business they’re extremely overpriced just to make a meal look more
overpriced just to make a meal look more
overpriced just to make a meal look more appealing and this is what they’ve won
appealing and this is what they’ve won
appealing and this is what they’ve won think they got you to walk out of the
think they got you to walk out of the
think they got you to walk out of the store not just with a burger but a
store not just with a burger but a
store not just with a burger but a burger soda and fries and the
burger soda and fries and the
burger soda and fries and the satisfaction of knowing you made the
satisfaction of knowing you made the
satisfaction of knowing you made the right choice
right choice
right choice and although this 7 Durham may not seem
and although this 7 Durham may not seem
and although this 7 Durham may not seem like much considering if we were had to
like much considering if we were had to
like much considering if we were had to have like a lot of people coming in on a
have like a lot of people coming in on a
have like a lot of people coming in on a daily basis it can add up to gargantuan
daily basis it can add up to gargantuan
daily basis it can add up to gargantuan profits now what do you want to be a
profits now what do you want to be a
profits now what do you want to be a little strangest whilst I was doing
little strangest whilst I was doing
little strangest whilst I was doing research for the decoy effect was I was
research for the decoy effect was I was
research for the decoy effect was I was just looking online there doesn’t seem
just looking online there doesn’t seem
just looking online there doesn’t seem to be so much coverage on it for
to be so much coverage on it for
to be so much coverage on it for something that’s used so often in our
something that’s used so often in our
something that’s used so often in our daily lives something that is constantly
daily lives something that is constantly
daily lives something that is constantly used in advertising we don’t even give
used in advertising we don’t even give
used in advertising we don’t even give it a name sometimes we just do it
it a name sometimes we just do it
it a name sometimes we just do it instinctively when I was looking up some
instinctively when I was looking up some
instinctively when I was looking up some articles the ones I found were the decoy
articles the ones I found were the decoy
articles the ones I found were the decoy effect and how to make more sales or how
effect and how to make more sales or how
effect and how to make more sales or how to help buyers choose the right choice
to help buyers choose the right choice
to help buyers choose the right choice well if I think that companies are going
well if I think that companies are going
well if I think that companies are going to manipulate us a toy with our
to manipulate us a toy with our
to manipulate us a toy with our cognitive biases in order to make us up
cognitive biases in order to make us up
cognitive biases in order to make us up some I find it to be a useful exercise
some I find it to be a useful exercise
some I find it to be a useful exercise to recognize that there are decoys and
to recognize that there are decoys and
to recognize that there are decoys and play to identify them and with this
play to identify them and with this
play to identify them and with this newfound information perhaps we could
newfound information perhaps we could
newfound information perhaps we could make a better decision so I’ll leave you
make a better decision so I’ll leave you
make a better decision so I’ll leave you with this in your life next time you
with this in your life next time you
with this in your life next time you make a purchase next time you buy
make a purchase next time you buy
make a purchase next time you buy something where else could you spot
something where else could you spot
something where else could you spot other decoys and perhaps where could you
other decoys and perhaps where could you
other decoys and perhaps where could you use decoys to your advantage
use decoys to your advantage
use decoys to your advantage thank you
”
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