Skip to main content

Beware of Pricing: The Decoy Strategy

By
The Decoy Price Strategy is presenting in an advertisement three options, and two are the same price; however, one of the two similarly priced products is inferior. The product that is inferior and has an equal price is the decoy. Dan Ariely, a behavioral economist, did a study on an advertisement by the economist newspaper. They offered selling subscriptions for its online website for fifty-nine dollars; however, the other two options were 125 dollars for both online article access and the printed newspaper, or the printed newspaper alone. Dan found in his sample survey that sixteen percent would choose the online subscription, and the rest would choose the online and printed subscription. The decoy can be seen as the printed newspaper, since no one chose that option. Dan did the survey a second time without the decoy, finding that the online subscription would be prefered sixty-eight percent of the time. The decoy pricing strategy is clearly more profitable because the majority chose the more costly subscription price. The third option lets people ponder a more informed decision; however, the effect can be skewed to the hope of the corporation. I am pondering, showing the Apple website and their prices of the iPhone in our in class presentation. They showed three products, and I am surprised that they do not display the iPhone 5 with the iPhone 5s and 5c. Apple chose to show the iPhone 4s instead of the iPhone. There were many options for the comparison of the three products, but the pricing tells us what offer is the decoy, and what product that they are trying to sell. The two products that were the same price hinted me at that. The simplest option for the 5s had only 16 gigabytes of memory and a price of 199 dollars. I could tell that the 32G iPhone 5c is the decoy because it cost the same, and it looked a lot worse than the 5s. Appearance is important to the decoy pricing strategy. I was also surprised that they had a buy now button that did not indicate any specific one of the three, which can reveal the product that they plan to sell the most, and my suspicion was right. The 16G iPhone 5s was displayed first on the buy now link. This is one of many pricing strategies.


























Comments

Post a Comment

Popular posts from this blog

Hello, New Beginnings New Duties

By
"Now is the time for members and missionaries to work together, to come together, to labor in the Lord's vineyard, to bring souls unto him" -President Monson this is the last new member lesson we had with Silvester ans my last time teaching with  y hermana Arevalo We had the best Family night (f.h.e) ever!! with Roxana and her three children, her husband and good friend of hers who is a member from a different branch. COol right she took initiative to invite others to come over for family time! that was exciting and plus she loves inviting our investigators to it all the time, she is the perfect fellow-shipper. We had a lesson on hte importance of praying as a family and studying the scriptures by topic. I gave them all a topics such as faith, hope charity, love etc. and they paired up in teams we had htem look under the GEE or Topical guide read the definition and look up scriptures, analyze them and share it with the group. We were having so much fun, espec...
Post a Comment
Read more

February 22, 2015

By
This week has been productive somewhat. I gave blood on Tuesday, and Jessica and I received our Valentine's Day packages on that day too. On Wednesday when Jessica and I began to Skype, a thought popped up in my mind, saying "You should not be dating her." This is not the first time that this happened, so I gave it some thought. Today is Sunday, and Jessica and I are fasting to confirm this prompting today. Pondering the thought that I should not be dating Jessica was unbearable last night, and I expressed it to her.  Also on Wednesday night, I prayed for a missionary opportunity, and the next day my work situation changed. I did my taxes on Saturday.      The opportunity to give blood became exciting on Tuesday, when I found out that my blood type is O positive. I was told that I can do a special donation where I give double the red blood cells. They said that it was actually easier on the body because they only take the red blood cells, and put the plasma and ever...
Post a Comment
Read more

My Work and My Interesting Health Situation Currently

By
This blog post is a segment of the journal entry of Alex Hicken found at the following link:  http://mormonysa.blogspot.com/2015/02/february-22-2015.html      I would like to tell you about my work and my interesting health situation currently. I don't know why I am not feeling well, but yesterday I felt weak at work. On Monday, I felt like my feet and hands were freezing all morning long. On Tuesday or so, I was wondering about my diet because I felt fine, but something was off. I think that I am not getting enough calories. I think that I have been getting about 1000 calories. Since I fasted, I could not eat as much breakfast as usual. I thought that my body was weak not eating enough, and fasting pushed it over the edge; plus, I donated blood last week. My grandma was thinking that I may have a little 24 hour bug to overcome. I think that I was getting about 200-300 calories for breakfast, 300-400 calories for lunch, and 400-600 calories for dinner; which is ...
Post a Comment
Read more