Saturday, June 15, 2013

Decoy the Indecisive Without Getting Decoyed

A shopper comes into your store to buy a printer, narrows the choices to two and pulls out an article with a bunch of ratings of printers. Model A, at a price of $180, has a rating of 50. Model B, for $260, received a rating of 70.
     The shopper can’t decide between the two and finally says she wants to look at other stores. The salesperson replies, “May I show you one more model that I think would help you decide? We carry a complete selection of printers, so I hate for you to need to bother going somewhere else.” The shopper agrees to look at one more printer.
     The salesperson presents a model from a manufacturer that does a lot of advertising, but has recently not received high ratings for their printers. If asked, store staff don’t give the model high recommendations. Still, they carry the model because people ask for it based on familiarity with the advertising. The salesperson says, “The price for this model is $180, like Model A, but if you check your article, you’ll see that it received a rating of 30, not the 50 which Model A received.”
     University of Toronto researchers report that the introduction of the inferior alternative often dislodges the tie and results in a purchase decision. With this set of facts, the choice is most likely to be Model A.
     Psychologists call this phenomenon the “decoy effect” or “attraction effect.” Studies have verified that the decoy effect operates with consumers choosing among microwave ovens, television sets, cars, apartments, beers, airline tickets, and even political candidates. It is nearly a universal rule of consumer behavior.
     But, it turns out, not absolutely universal. Researchers at Vanderbilt University, University of Iowa, and Washington University in St. Louis warn that in deciding whether to use the decoy effect, you know when to duck away.
  • When the shopper has substantial expertise regarding the product category. Sincerely praise such people for their knowledge and learn from them how they make their purchase decisions. 
  • When the choices the shopper is wrestling with possess many undesirable features. You’re most likely to have the shopper return if you agree they might want to look elsewhere for that printer. 
  • When you don’t have a suitable decoy. An effective decoy has at least one important attribute in common with that of the choice you want the shopper to make. 
Click below for more: 
Dislodge Indecision with New Choice 
Woo Item Experts

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