IJSSER

Title: THE EFFECT AND INFLUENCE OF THE DECOY PRICE ON CONSUMER PREFERENCES
Authors: Hadeel Manimaran
\|\| \|\|
Hadeel Manimaran APL Global School
MLA 8 Manimaran, Hadeel. "THE EFFECT AND INFLUENCE OF THE DECOY PRICE ON CONSUMER PREFERENCES." Int. j. of Social Science and Economic Research, vol. 6, no. 7, July 2021, pp. 2349-2355, doi.org/10.46609/IJSSER.2021.v06i07.020. Accessed July 2021. APA 6 Manimaran, H. (2021, July). THE EFFECT AND INFLUENCE OF THE DECOY PRICE ON CONSUMER PREFERENCES. Int. j. of Social Science and Economic Research, 6(7), 2349-2355. Retrieved from doi.org/10.46609/IJSSER.2021.v06i07.020 Chicago Manimaran, Hadeel. "THE EFFECT AND INFLUENCE OF THE DECOY PRICE ON CONSUMER PREFERENCES." Int. j. of Social Science and Economic Research 6, no. 7 (July 2021), 2349-2355. Accessed July, 2021. doi.org/10.46609/IJSSER.2021.v06i07.020.
References [1]. Wu, Chunhua&Cosguner, Koray. (2020). Profiting from the Decoy Effect: A Case Study of an Online Diamond Retailer. Marketing Science. 39. 974-995. 10.2139/ssrn.3271331. [2]. Kaptein, Maurits& Emden, Robin &Iannuzzi, Davide. (2016). Tracking the decoy: Maximizing the decoy effect through sequential experimentation. Palgrave Communications. 2. 16082. 10.1057/palcomms.2016.82. [3]. Sherlin, Intan&Siswadhi, Ferry &Sarmigi, Elex. (2020). Analysing the Decoy Effect on Online Product Purchasing Preference: An Experimental Study. 10.2991/aebmr.k.200331.027. [4]. Dornbusch and Fischer(2010). Macroeconomics 9thedition.TataMcgraw Hill,Ch.6.4 [5]. Pindych&Others,microeconomics, A7th ed.Pearson,Ch.17
Abstract: A choice is defined as a range of possibilities from which one may be chosen. Deeply exploring why people make the choices they do, a conclusion arises based on Rational choice theory:- Individuals make choices maximizing their interests and ones that provide them with the greatest benefit. If this theory is applied on the purchase of products, a choice should be based solely on the pros and cons of the two options. But if a third option is thrown in, is there a possibility of affecting economic thinking to the extent of shifting the consumer’s preference from one of the original options to another. The decoy effect shines a light on the influence of a third option that’s not been produced as a viable choice rather exclusively to shift the choice between the original options. The decoy effect has been a highly challenged and controversial topic in the past couple of decades due to the conditions in which it has been proved being very specific and multiple unsuccessful replications. In this article, we take a look at the phenomenon in general, the theory it’s based on a few examples where it has been proved.

IJSSER is Member of