Transcript for:
The Influence of Decoy Options in Pricing

your ticket now you head over to the concession stand to buy some popcorn you can get a small popcorn for $3 or a large for 7 so which one would you choose we've all been there you want a decent amount of popcorn but $7 feels like a ripoff so if you chose small you're like most people we've set up cameras to see what will happen when we offer the same choice to real movie goers can I get you some popcorn sure you get a small a small sure or a large for seven oh it's a the small these are the sizes you know what I'll have a small one and some M&M's okay sure they have no idea we're running an experiment and nearly everyone goes for the small excuse me sorry to bother you but um we're doing a little experiment do you think $7 is a lot of money for popcorn yeah the $7 was a little out of line for popcorn but now we're going to see if we can influence your decision making here's another decision for you you can get the small for $3 a medium for $650 or you can get the large for $7 so have you made your choice does the large look a bit more appealing now we've made the same change at the movie theater and stepped back to see what happens do you think more people will buy a large I'll take a medium uh sized Popcorn Please sweetie it's only 50 cents more for large why don't we get a large okay let's get a large I think I'll take a large sure large or definely lar all right all we did was add a medium and the large has become irresistible um just a medium popcorn please you can get the large for 50 cents more okay that'll work everyone is buying a large so how do they explain it the large looks like such a better value than the medium I such a bargain I but the deal you still spent more money in the net total of the night 50 cents dude dude