Examples Suppose there is a consideration set (options to choose from in a menu) that involves MP3 players . Consumers will generally see higher storage capacity (number of GB) and lower price as positive attributes; while some consumers may want a player that can store more songs, other consumers will want a player that costs less. In Consideration Set 1, two devices are available: +Consideration Set 1 A B price $400 $300 storage 30GB 20GB +Consideration Set 2 A (target) B (competitor) C (decoy) price $400 $300 $450 storage 30GB 20GB 25GB The addition of decoy C — which consumers would presumably avoid, given that a lower price can be paid for a model with more storage—causes A, the dominating option, to be chosen more often than if only the two choices in Consideration Set 1 existed; C affects consumer preferences by acting as a basis of comparison for A and B. Because A is better than C in both respects, while B is only partially better than C, more consumers will prefer A now than did before. C is therefore a decoy whose sole purpose is to increase sales of A. Conversely, suppose that instead of C, a player D is introduced that has less storage than both A and B, and that is more expensive than B but not as expensive as A: +Consideration Set 3 A (competitor) B (target) D (decoy) price $ 400 $300 $350 storage 30GB 20GB 15GB
Examples Suppose there is a consideration set (options to choose from in a menu) that involves smartphones . Consumers will generally see higher storage capacity (number of GB) and lower price as positive attributes; while some consumers may want a device that can store more photos, music, etc., other consumers will want a device that costs less. +Consideration Set 1 A B price $400 $300 storage 300GB 200GB +Consideration Set 2 A (target) B (competitor) C (decoy) price $400 $300 $450 storage 300GB 200GB 250GB The addition of decoy C — which consumers would presumably avoid, given that a lower price can be paid for a model with more storage—causes A, the dominating option, to be chosen more often than if only the two choices in Consideration Set 1 existed; C affects consumer preferences by acting as a basis of comparison for A and B. Because A is better than C in both respects, while B is only partially better than C, more consumers will prefer A now than did before. C is therefore a decoy whose sole purpose is to increase sales of A. Conversely, suppose that instead of C, a player D is introduced that has less storage than both A and B, and that is more expensive than B but not as expensive as A: +Consideration Set 3 A (competitor) B (target) D (decoy) price $ 400 $300 $350 storage 300GB 200GB 150GB
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MP3 players
smartphones
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player
device
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songs,
photos, music, etc.,
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player
device
D
In Consideration Set 1, two devices are available:
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30GB 20GB
300GB 200GB
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$450 storage 30GB 20GB 25GB The addition of decoy C — which consumers would presumably avoid, given that a lower price can be paid for a model with more storage—causes A, the dominating option, to be chosen more often than if only the two choices in Consideration Set 1 existed; C affects consumer preferences by acting as a basis of comparison for A and B. Because A is better than C in both respects, while B is only partially better than C, more consumers will prefer A now than did before. C is therefore a decoy whose sole purpose is to increase sales of A. Conversely, suppose that instead of C, a player D is introduced that has less storage than both A and B, and that is more expensive than B but not as expensive as A: +Consideration Set 3 A (competitor) B (target) D (decoy) price $
$450 storage 300GB 200GB 250GB The addition of decoy C — which consumers would presumably avoid, given that a lower price can be paid for a model with more storage—causes A, the dominating option, to be chosen more often than if only the two choices in Consideration Set 1 existed; C affects consumer preferences by acting as a basis of comparison for A and B. Because A is better than C in both respects, while B is only partially better than C, more consumers will prefer A now than did before. C is therefore a decoy whose sole purpose is to increase sales of A. Conversely, suppose that instead of C, a player D is introduced that has less storage than both A and B, and that is more expensive than B but not as expensive as A: +Consideration Set 3 A (competitor) B (target) D (decoy) price $
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30GB 20GB 15GB
300GB 200GB 150GB