Ethical Persuasion with the
Decoy Strategy.
May 20, 2025 | 12:08am EST
Overview
The Decoy Strategy is one of the most reliable tools in behavioral economics. When presented with three options, people naturally move toward the one that feels safest, smartest, or most reasonably positioned - especially when the “decoy” makes your preferred offer look more attractive by comparison.
This memo breaks down how ethical use of the Decoy Effect helps founders guide clients toward the offer that delivers the best results. It’s not about manipulation - it’s about clarity. When your pricing is structured intentionally, you reduce decision friction, increase conversions, and position your mid-range offer as the obvious, value-driven choice.
Strategic Moves
Structure your pricing to lead toward a target offer. Use three tiers - basic, mid-range, premium - and ensure your preferred option sits in the middle.
Make your mid-range offer the strongest value. Over-deliver so the target package feels both smart and satisfying to choose.
Use a high-end decoy to anchor perception. Even if rarely purchased, a premium option strengthens the perceived value of your standard offer.
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