Decoy Effect
Use the Decoy Effect to nudge choices by adding an inferior third option that makes your target plan look irresistible.
Definition
The Decoy Effect is a cognitive bias where introducing a third, inferior option shifts user preference toward a target option.
It leverages asymmetric dominance: the decoy is worse in every way compared to the target, making the target look objectively more attractive.
Psychologically, it exploits our comparative decision-making shortcuts, rather than evaluating options on absolute value, we contrast them against a poor decoy.
In UX and pricing strategies, this nudge tilts choices subtly but powerfully, boosting conversion on the intended plan or feature.
Understanding this human-computer interaction staple lets you craft choice architectures that guide users without resorting to dark patterns.
Real world example
Think about The Economist’s subscription page: they offer Web-only at $59, Print-only at $125, and Print+Web at $125. The Print-only option is the decoy, identical price to Print+Web but worse value, so most users pick the combo option.
Real world example
The Decoy Effect shines on pricing pages, especially in tiered subscription models where you want to steer users to your mid- or high-tier plan. It also plays a role in feature comparison tables, making premium packages look like a steal next to a deliberately underpowered decoy. Finally, you can apply it in email or upsell modals by offering a low-priced, stripped-down version of your add-on to make the main add-on option feel more compelling.
What are the key benefits?
Everything you need to make smarter growth decisions, without the guesswork or wasted time.
Introduce a decoy option slightly worse than your target package.
Align decoy pricing to match or slightly undercut the target plan’s price.
Use clear labels and feature lists to highlight why the decoy is inferior.
What are the key benefits?
Everything you need to make smarter growth decisions, without the guesswork or wasted time.
Don’t confuse users with too many decoys, one is enough.
Avoid decoys that are too similar; users might spot the trick and distrust your brand.
Don’t hide the decoy, transparency prevents backlash and churn.
Frequently asked questions
Growth co-pilot turns your toughest product questions into clear, data-backed recommendations you can act on immediately.
How many decoy options should I use?
Stick to a single decoy per choice cluster. Multiple decoys dilute the effect, confuse users, and reduce trust.
Can the Decoy Effect backfire?
Yes, if users detect manipulation or feel tricked, they may abandon or churn. Keep decoys transparent and clearly labeled.
Is it unethical to use the Decoy Effect?
Not if you’re honest. The goal is guiding, not deceiving. Make sure every option has genuine value and clear features.
Should decoys always be priced close to the target?
Generally yes, a decoy priced too low or high loses asymmetric dominance. Aim for a price point equal or just under the target.
Where else can I apply the Decoy Effect?
Beyond pricing, use decoys in feature bundles, service tiers, or even in onboarding steps, anywhere users choose between multiple clearly defined options.
Spot Your Hidden Decoys
Your pricing page might already have unintended decoys killing your upsell. Run the CrackGrowth diagnostic to uncover exactly where you’re losing customers to poor choice architecture.