Ever been staring at a pricing page – maybe for a subscription, an online course, or even just popcorn at the movie theater – and thought, “Wait… why would anyone choose that one?”
Spoiler alert: they’re not supposed to.
That oddly overpriced or oddly limited option is what marketers call a decoy – and it’s not there to be chosen. It’s there to manipulate your decision-making and nudge you toward the option they want you to pick.
It’s a tactic rooted in something called the Decoy Effect (aka the Asymmetric Dominance Effect, first described by Huber, Payne, and Puto in a 1982 Journal of Consumer Research study) – and it’s one of those sneaky strategies that can feel “clever” on the surface… but crosses the line into shady when you dig deeper.
The gist: The decoy effect (also called the asymmetric dominance effect) is a pricing tactic that adds a deliberately unappealing option, like an $8 medium popcorn next to a $9 large, to nudge buyers toward a pricier choice. Ethical pricing offers two or three clear options that each stand on their own value.
Part of the Psychological Pricing & Sales Tricks guide.
Especially for neurodivergent folks, or anyone already navigating decision fatigue and marketing overwhelm, these tricks aren’t just frustrating – they’re inaccessible.
In this post, we’re digging into:
- What the Decoy Effect is (with real-world examples)
- Why it’s a problem – especially through a lens of ethical, inclusive marketing
- How you can structure your offers and messaging without relying on mind games
Because here's the thing: ethical marketing isn’t about tricking people into buying. It’s about building real relationships and helping values-aligned humans make informed, empowered decisions.
What Is the Decoy Effect?
The Decoy Effect is a psychological trick that makes one option look better – not by changing it, but by adding a third option that’s strategically worse.
It’s like marketing sleight of hand: distract you with a bad option so you gravitate toward the “best value,” which just so happens to be what the business wanted you to pick all along.
A Classic Example:
Imagine you’re buying popcorn at the movies (because yes, we’re all just one salty snack away from a life lesson):
- Small – $4
- Medium – $8
- Large – $9
Wait… what? Why would anyone choose the medium?
Exactly. That $8 medium exists just to make the $9 large look like a steal. You feel smart for skipping the “bad deal,” but you’ve been nudged – hard – toward the priciest option with the highest profit margin.
That’s the Decoy Effect in action.
Why Does It Work?
Because brains love shortcuts.
When faced with a tough decision – especially involving money or risk – our brains look for shortcuts. Instead of analyzing value, we lean into comparison. The decoy creates contrast and skews our judgment.
And if you’re already managing decision fatigue, sensory overload, or executive functioning challenges (common with ADHD), these tactics hit extra hard.
Why is the Decoy Effect Is Problematic? (Especially for Impact-Driven Businesses)
Sure, the Decoy Effect works. But let’s be real: just because something works doesn’t mean it’s right – especially when your business is rooted in justice, equity, and inclusion.
Let’s break down why this tactic is so problematic:
1. It’s Manipulative, Not Mindful
At its core, the Decoy Effect relies on trickery. It’s not about helping your audience make a better decision – it’s about nudging them toward your preferred outcome without their full awareness.
It undermines trust, even if the buyer doesn’t realize what’s happening right away. And for those of us building values-aligned businesses, trust is everything.
2. It Increases Overwhelm – Especially for Neurodivergent Folks
If your ideal client is navigating ADHD, anxiety, or decision fatigue, adding unnecessary or confusing options just creates more mental clutter.
The Decoy Effect intentionally introduces a “bad” option to create contrast, but for someone with executive functioning challenges, it can feel like one more confusing puzzle piece in an already overwhelming system.
Ethical marketing should reduce overwhelm – not profit from it.
3. It Erodes Long-Term Trust
Sure, you might get the sale today – but when someone realizes they were “nudged” into it? That trust erodes. Fast.
And let’s be honest: a loyal, values-aligned customer is worth way more than a one-time sale built on smoke and mirrors.
4. It Prioritizes Profits Over People
The Decoy Effect is a textbook example of extractive capitalism in action. It puts conversion rates above connection, short-term wins over long-term impact.
That’s not how we do things in this corner of the internet.
In short: the Decoy Effect might boost sales, but it does so at the cost of clarity, trust, and accessibility. For values-driven entrepreneurs, that trade-off just isn’t worth it. When we center people over profits, we open the door to marketing that feels good for everyone involved – buyers included.
What Are Examples of the Decoy Effect?
Once you know what to look for, you’ll start seeing the Decoy Effect everywhere. It’s hiding in pricing pages, product bundles, and even your weekly coffee run.
Let’s look at some common examples… plus a few gray areas worth unpacking.
Example 1: Subscription Pricing Tiers
This one’s a classic – used by software companies, online memberships, and digital course creators:
- Basic Plan: $10/month
- Pro Plan: $30/month
- “Plus” Plan (Decoy): $28/month with fewer features than Pro
That $28 “Plus” plan exists only to make the $30 option look like a no-brainer. It's not really meant to be chosen… it’s bait.
Example 2: Movie Theater Popcorn (Yup, Again)
- Small: $4
- Medium: $8
- Large: $9
Medium’s only job? To make that $9 bucket of popcorn feel like a steal. (Even though you didn’t want a large popcorn when you walked in.)
Example 3: Bundles & Packages
A coaching program might offer:
- 1 Session: $150
- 3 Sessions: $300
- 2 Sessions (Decoy): $250
That 2-session package? Weirdly priced. It’s there to steer you toward the “better deal” of 3 sessions – even if that’s more than you actually need or can afford.
Gray Area: Is It Always Manipulative?
Here’s where things get a little murky.
Sometimes, marketers accidentally create decoys without ill intent – especially when trying to give “more choices” or serve multiple budgets.
But intent doesn’t erase impact. Even unintentional decoys can cause confusion or overwhelm, especially for neurodivergent folks who already struggle with decision-making.
Once we become aware of the impact, it’s on us to do better. That’s where ethical marketing begins: with the willingness to shift, even when it's inconvenient, and center the people we serve.
Your Turn: Ever Felt Tricked?
Take a second and think back – have you ever made a purchase and later thought, “Wait… I didn’t actually want or need all that.”
Noticing these moments is the first step toward marketing more consciously – and creating sales experiences that empower instead of manipulate.
What Ethical Marketing Looks Like Instead
You don’t need to rely on trickery to sell your offers. When you center clarity, trust, and autonomy, your audience doesn’t just feel good about buying from you – they want to.
So how do we ditch the decoy and keep our marketing rooted in values?
1. Transparent Pricing
Be clear and honest about what each option includes – and why it costs what it does.
Instead of manipulating someone into “choosing the best value,” show them the real value in each offer. If your premium option is the most supportive, let that shine without throwing a confusing “meh” option into the mix.
Bonus: transparency builds long-term trust, and trust leads to referrals, retention, and raving fans.
2. Empowerment Over Persuasion
Ethical marketing invites people in – it doesn’t push or pressure.
Instead of asking, “How can I get them to choose X?” ask:
- “How can I make it easier for them to choose what’s right for them?”
- “How can I support them in making a decision they feel good about – now and later?”
This shift is subtle but powerful. It respects your audience’s agency, and that’s a game changer.
3. Fewer, Clearer Options
More isn’t always better – especially for folks with ADHD or executive functioning challenges.
Offering fewer options (2–3 max) and clearly explaining the difference between them can reduce overwhelm and increase confidence. Simple, inclusive design helps everyone – not just neurodivergent people – make better choices.
Clarity is kind. Confusion is not a sales strategy.
4. Value-Aligned Messaging
You don’t have to “sell the dream” or use fake urgency. Talk to your people like actual humans. Acknowledge their goals, their challenges, and their values – and show how your offer fits into their world.
When your messaging is rooted in shared values instead of pressure or pain points, you attract people who are genuinely aligned with your mission. That’s not just ethical… it’s efficient.
Ethical marketing isn’t about avoiding strategy – it’s about using strategy with integrity. You don’t need to manipulate or confuse people to sell your work. By leading with clarity, reducing overwhelm, and centering your audience’s autonomy, you build trust that lasts longer than any one conversion. And the best part? It actually feels good – for you and your people.
How Do You Know If You're Using the Decoy Effect?
If you’re wondering, “Wait… have I accidentally used the Decoy Effect?” – first, take a deep breath. Most of us have picked up these tactics because they’re taught as “best practices.”
But now that you know better, it’s time to realign with your values – and that starts with a simple, judgment-free audit.
Here are a few questions to guide your reflection:
Ask Yourself:
- Why am I offering multiple options?
Is it to serve different needs – or steer buyers toward a specific choice? - Is every option truly valuable on its own?
Would I feel good if someone chose any of the options I’m presenting? - Is there a “decoy” in my offer lineup?
Would removing one option create more clarity and reduce overwhelm? - Am I making it easy to choose?
Would someone with ADHD, decision fatigue, or low marketing literacy feel confident navigating this? - Is my pricing structure transparent?
Am I clearly explaining why each offer is priced the way it is?
This Is a Practice, Not a Perfection Game
Auditing your marketing isn’t about getting it “perfect.” It’s about continually checking in to make sure your strategies still reflect your values – and the people you’re here to serve.
Your audience doesn’t need polished manipulation. They need you – clear, kind, and values-aligned.
You Don’t Need Tricks to Make a Big Impact
Marketing doesn’t have to feel icky, manipulative, or overwhelming. You can sell your offers, grow your business, and support your community without playing games… and honestly? That’s where the real magic happens.
By ditching tactics like the Decoy Effect and leaning into transparency, clarity, and trust, you’re not just building a brand, you’re building a legacy of ethical leadership.
This work takes reflection, unlearning, and sometimes reworking things you once thought were “best practices.” But if you’re here reading this? You’re already doing it.
Let’s Keep the Conversation Going
If this post made you rethink how you present your offers – or got your wheels turning about ethical pricing and accessibility – I’d love to hear from you.
- Connect with me on Facebook, Instagram, LinkedIn, or BlueSky.
- Want help creating values-aligned content and bringing more Just Marketing® principles into your business? Learn more about what it’s like to work with me.
Marketing doesn’t have to be a hustle game.
Let’s make it human again… 💕
FAQs
Price anchoring shows a high price first so later prices feel reasonable by comparison. The decoy effect adds a third option that's clearly worse than one of the others, steering buyers toward the option the seller prefers. Both rely on comparison to shape a decision. Read more about price anchoring and other predatory tactics.
Three tiers can be a helpful way to serve different budgets and needs. The key is making sure each option is genuinely worth choosing on its own, with clear differences in what's included. If you'd happily support someone choosing any of your tiers, you're on solid ground.
Look for an option that almost nobody buys and that exists mostly to make another option look better. If removing it would make your lineup clearer for buyers, it's likely a decoy. Asking a few past clients how they chose between options can reveal confusion you might not notice yourself.
Charm pricing, like $97 in place of $100, and price anchoring both shape how people perceive value. Some uses are harmless and others lean into manipulation, so it helps to understand how each one works before deciding. Here's a closer look at charm pricing through an ethical lens.
Share prices openly and explain what each option includes and why it costs what it does. Payment plans or a sliding scale can make your work accessible to more people. Your core values make a great filter for pricing decisions.
Research suggests the decoy effect is strongest when options are easy to compare side by side, like sizes or plan features. Its pull varies from person to person and tends to be weaker in some real-world settings. Fatigue and overwhelm can make anyone more likely to lean on shortcuts like this.
