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How ‘Decoy Pricing Tactics’ Are Costing You | Canstar Blue

Decoy pricing in action
Nine News used common products sold at pharmacies to highlight the issue.

A small 31-tablet pack of Blackmores Vitamin C costs $9.49, with the 62-tablet pack costing $16.49. But shoppers only have to pay an additional $3.50 to purchase the 150-tablet pack, making the 62-pack a decoy.

“Shoppers are being encouraged to buy bigger products when in fact they probably don’t need to buy a bigger product,” added Assoc. Prof. Mortimer.

“The sole purpose of a decoy is to make an alternative product (the target) more attractive to a consumer. Simply, the ‘decoy’ is never chosen because it is ‘dominated’ by the other options on price, quality, convenience and so on – but it makes one of those options, generally the most expensive, seem more attractive.”

Shoppers are being urged to be more aware of the pricing strategy the next time they hit the shops.

“What they’re doing is they’re creating a perception shift in your mind that allows you to perceive extra value,” Behavioural Strategist Dan Gregory told Nine News.

“So, they’re not forcing your behaviour, but they are certainly influencing it.”

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How ‘Decoy Pricing Tactics’ Are Costing You – Canstar Blue.