The Medium Popcorn Trap

60% of the time, it works every time.

It's happened to all of us: you're at the concessions stand, shocked that popcorn costs more than your ticket, but you push forward because popcorn just tastes better at the movies. The small is $6.00 and the large is $9.50. You're leaning towards the small option, mainly because you feel that $9.50 is a rip-off, until you see that the medium option is $9.00. Suddenly, that large feels like a steal, so you tap your card and walk away feeling like you gamed the system.

The truth is, you never stood a chance thanks to the "decoy effect."

If you're not familiar, the decoy effect is marketing's best-kept secret: slip in an intentionally lousy option, and watch people flock to the one you actually want them to choose. That "lousy" option is never meant to be purchased. Instead, it's a psychological push. This is an incredibly powerful tool because, as a species, we humans love to compare. Put two options side by side, and, without thinking, we weigh pros and cons. However, when a third choice is added that's almost identical to one but clearly worse, suddenly the better of the two looks extremely compelling.

Behavioral economist Dan Ariely put this to the test with The Economist subscriptions:

• Web-only: $59

• Print-only: $125

• Web + Print: $125

Let's face it, who in their right mind is going to pay the same price for less? At this point, it shouldn't surprise you that when all three options were available, over 90% subscribed to the Web + Print combo. When the print-only "decoy" was removed, subscriptions for the "premium" option took a nosedive, thereby proving that the decoy is key.

If you pay attention, you'll see this marketing tactic at play just about everywhere:

• Menus. That $70.00 bone-in ribeye option isn't there because it's the most profitable; it's there to make the $55.00 New York strip look much more reasonable.

• Technology. Choose between storage sizes of 128GB, 256GB, and 512GB on your next phone - complete with a $200.00 price jump for that top option, and consumers pick the 256GB option 96% of the time.

• Hotels. They list a basic room, a deluxe room, then a deluxe plus for "only" $20.00 more. Time and again, guests gravitate to the "better" deluxe thinking they've nailed value when, in reality, they've just followed the trail of breadcrumbs.

Here's why this matters in the world of branded merchandise: you can use the decoy effect to guide clients toward better merch choices and better budgets. Imagine you're pitching three drinkware options:

1. A basic plastic tumbler at $5.00

2. A sleek stainless-steel insulated bottle at $18.00

3. A $17.00 double-wall bottle that looks almost the same but isn't insulated and comes in fewer colors

Suddenly, that $18.00 insulated stainless-steel bottle feels like a bargain. The client thinks, "I got a HUGE upgrade for only $1.00 per unit.” The client wins because they feel great about their decision, and you win because you not only made a sale, but you also lessen the chance of buyer's remorse.

It's not manipulation; it's structure. The decoy is a fantastic tool that helps buyers feel confident in a choice they are most likely to benefit from as it slices through decision fatigue. Even more, the decoy effect:

• Elevates perceived value in a sea of sameness

• Streamlines decision-making by highlighting the real winner

• Boosts your close rate by making the "right" option feel like a no-brainer

  
  

Next time you build a merch deck, try it out: two solid options and one carefully placed decoy, and see what happens. You'll guide your clients to greatness and make them feel like they are brilliant at branded merch. When they walk away convinced they just scored a great deal and it will help them achieve their goals, they'll come back again and again.