The Decoy Effect: A Deal or Deception? A Case Study of JioSaavn, iPhone 14 and Netflix India

Kashish Talwar

Abstract: When you buy a cup of coffee, you might have noticed that of the three size options - small, medium and large ? the medium - sized serving often costs almost as much as the large. Given the apparent bargain, have you ever opted for the biggest and most expensive option? If yes, you have been deceived into believing that you have made a smart decision. The decoy is a cognitive bias strategy opted by the marketing analysts to feed on the week decision making power of people. So, the actual result was that you ended up overspending even when you could have done with a small coffee. Alternatively, the cafe just sold the pricier product.

Keywords: Marketing strategies, Decoy effect, Upselling, nudge, asymmetric dominance