$1,999 outsells $1,799 Apple offered three 13-inch MacBook Pros – the basic model for $1499; the intermediate model for $1799; and the premium model for $1999. In this case, the intermediate model was a ‘decoy’, driving consumers to buy the premium model. Consumers did not want to buy the ‘cheapy’, and since the premium was […]

$1,999 outsells $1,799 Apple offered three 13-inch MacBook Pros – the basic model for $1499; the intermediate model for $1799; and the premium model for $1999. In this case, the intermediate model was a ‘decoy’, driving consumers to buy the premium model. Consumers did not want to buy the ‘cheapy’, and since the premium was only $200 more than the intermediate offering felt ‘why not pay the extra $200?’ This was a highly successful strategy for Apple.Photograph vendor Shutterstock was offering 4 packages – 10 images for $29; 50 images for $99; 350 images for $169; and 750 images for $199. In this case, the 350 images for $169 was the decoy. If the consumer needed more than 50 images per month, the 350 images package feels unreasonable because for $30 more they can enjoy more the twice as many images. The consumer is drawn to the more expensive package. The…