Brain Based Marketing

The magic formula.

In Predictably Irrational (a fascinating read for those interested in neuromarketing and neuroeconomics), author Dan Ariely describes a Price Decoy Experiment using magazine subscription offers.

Like most of Ariely’s experiments, this one is deceptively simple.

Two groups of subjects saw one or the other of these offers to subscribe to The Economist.

Offer A: $59 – Internet Only Subscription (68 chose) $125 – Internet and Print Subscription (32 chose)

Predicted Revenue – $8,012

Offer B: $59 – Internet Only Subscription (16 chose) $125 – Print Only Subscription (0 chose) $125 – Internet and Print Subscription (84 chose)

Predicted Revenue – $11,444

Take a moment to look at this rather startling result.

Both offers are the same, with the exception of including the “print only” subscription in
Offer A.

Despite the fact that not a single person chose that unattractive offer, its impact was dramatic – 62% more subjects chose the combined print and Internet offer, and predicted revenue jumped 43%.

The print-only offer was the decoy, and served to make the combined offer look like a better value.

If you enjoyed this content, click the link below to access my Brain Based Marketing community on Facebook.

It will give you a razor’s edge on your competition. 😉

https://facebook.com/groups/brainbasedmarketing