In an expirement, two groups of subjects saw one or the other of these offers to subscribe to The Economist.
Offer A:
$59 - Internet Only Subscription (68 chose)
$125 - Internet and Print Subscription (32 chose)
Predicted Revenue - $8,012
Offer B:
$59 - Internet Only Subscription (16 chose)
$125 - Print Only Subscription (0 chose)
$125 - Internet and Print Subscription (84 chose)
Predicted Revenue - $11,444
Take a moment to look at this rather startling result. Both offers are the same, with the exception of including the “print only” subscription in Offer A. Despite the fact that not a single person chose that unattractive offer, its impact was dramatic - 62% more subjects chose the combined print and Internet offer, and predicted revenue jumped 43%. The print-only offer was the decoy, and served to make the combined offer look like a better value.
Read more about Decoy Marketing at the Neuromarketing blog.
