Choosing Not Shopping

I noted that when the Economist magazine had three offers $59 for online only, $125 for print only, and $125 for both, 84% of purchasers chose the print-and-online option because they got the online for “free.” Nobody bought the $125 print-only option, and 16% went for the online-only offer. This meant that the “average basket” of the population of Economist shoppers was just over $114 84% of $125 + 16% of $59.When the print-only choice was removed, 68% of purchasers chose the $59 option, only 32% went for the print-and-online bundle, and the average basket was approximately $80 32% of $125 + 68% of $59. So when the decoy was added, the average sale increased from $80 to $114 dollars.

via Create “Choosing” Not “Shopping” Experiences – John Sviokla – Harvard Business Review.

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