Operating Principle

2–4 min read

The Contrast Effect Changes What Looks Like a Good Deal

The Contrast Effect Changes What Looks Like a Good Deal

The Contrast Effect Changes What Looks Like a Good Deal

Perceived value depends heavily on what an option is placed next to.

Perceived value depends heavily on what an option is placed next to.

Perceived value depends heavily on what an option is placed next to.

Choice sets shape value as much as prices do.

Choice sets shape value as much as prices do.

Choice sets shape value as much as prices do.

Choice sets shape value as much as prices do.

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Operating Question

Have pricing tiers been tested as a designed choice set?

Have pricing tiers been tested as a designed choice set?

Have pricing tiers been tested as a designed choice set?

Why It Matters

Choice sets shape value as much as prices do.

Supporting Evidence

Huber, Payne, and Puto on decoy effects; Dan Ariely.

Research Notes

Apply with context: customer situation, severity, and evidence quality shape the effect.

Practical Actions

Design the full choice set; test decoys carefully; assess price changes in context.

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