Can Decoy Marketing Increase Your Sales?
Hi guys and gals,
I read an interesting blog post that discussed "decoy marketing" and thought some of you might benefit from it.
The strategy is to throw in a similar but not-as-good offer with the product you're really hoping people will buy. While folks won't likely choose the not-so-good offer, just having it there can make the following offer seem more attractive than it would by itself.
Here's the example from the post:
Two groups of subjects saw one or the other of these offers to subscribe to The Economist, and here's what the results were based on what they were shown:
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
That's quite an improvement! It seems tailor made for the information marketer too.
For a bit more explanation, you can read the original post over at Neuroscience Marketing:
Decoy Marketing
I read an interesting blog post that discussed "decoy marketing" and thought some of you might benefit from it.
The strategy is to throw in a similar but not-as-good offer with the product you're really hoping people will buy. While folks won't likely choose the not-so-good offer, just having it there can make the following offer seem more attractive than it would by itself.
Here's the example from the post:
Two groups of subjects saw one or the other of these offers to subscribe to The Economist, and here's what the results were based on what they were shown:
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
That's quite an improvement! It seems tailor made for the information marketer too.
For a bit more explanation, you can read the original post over at Neuroscience Marketing:
Decoy Marketing