How a Slightly Worse Option Increases Conversions using the Decoy Effect
- kmunn87
- Sep 22
- 3 min read
Sometimes, the secret to selling more isn’t about your best offer it’s about your worst one. Sounds backwards, right? But thanks to a psychological quirk called the Decoy Effect, a slightly less attractive option can nudge people towards the choice you want them to make.
Whether you’re running a Wix or Squarespace website, understanding this effect can help you structure your packages, pricing, or donation tiers in a way that feels natural and more persuasive.
WHAT IS THE DECOY EFFECT?
The Decoy Effect happens when you introduce a third option that makes one of the others look more appealing. It’s not designed to be chosen, but to steer people’s decisions.
For example:
Coffee shops often list small £2.50, medium £3.50, and large £3.60. Suddenly, the medium looks like terrible value, and the large looks like a bargain even if you never intended to buy it.
The Economist famously offered online-only £59, print-only £125, and print + online £125. No one picked print-only, but it made the bundle look irresistible.
The decoy is like a wingman. It’s not the star, but it makes the star shine brighter.
WHY DOES IT WORK?
Anchoring bias: We compare options side by side, so the “decoy” makes one stand out as the smarter choice.
Cognitive ease: The brain likes feeling clever. Picking the “better deal” feels like a win.
Perceived value: Even if prices are higher, the comparison makes it feel like we’re getting more for our money.
HOW TO USE THE DECOY EFFECT ON YOUR WEBSITE?
Step 1: Structure Your Options
Offer three packages (e.g. Mini Website, Bespoke Build, Page Makeover). Position the decoy so it highlights the one you want people to choose.
Step 2: Show the Value Clearly
Use comparison tables or bullet lists so the differences are easy to scan.
Step 3: Nudge, Don’t Manipulate
Keep it ethical. People should still get real value no matter what they choose, but the decoy just helps them decide.
QUICK TIPS FOR WIX AND SQUARESPACE WEBSITES
Use pricing tables to display your packages side by side.
Highlight your “best value” option with colour, bold fonts, or a subtle badge.
Test different arrangements (middle vs. right-hand column) to see what converts best.
YOUR ACTION PLAN
Look at your current services or donation tiers.
Add a “decoy” option that makes your preferred option shine.
Use clear design using headings, spacing, and highlights to make the value obvious.
Track conversions for a month and compare.
Sometimes you just need to arrange what you have in a way that plays to how people actually make decisions.
SUBSCRIBE & FOLLOW
Ready to make your content more brain-friendly? Follow me, on Facebook and LinkedIn or sign up to my blog for more web design psychology tips and tricks from a Squarespace and Wix web designer.
ABOUT THE AUTHOR
Written by Katie Di Feliciantonio at Made by Katie, a Surrey-based Wix and Squarespace web design studio.
I work with charities and small businesses, offering tailored packages to suit your needs: Mini Websites for a fast, affordable online presence, Bespoke Website Builds for a fully custom website, and Page Makeovers to refresh and optimise your existing site.
REFERENCES
Ariely, D. (2008). Predictably Irrational. HarperCollins.
The Economist Pricing Example (2008) – cited widely in behavioural economics case studies.
Huber, J., Payne, J. W., & Puto, C. (1982). Adding Asymmetrically Dominated Alternatives: Violations of Regularity and the Similarity Hypothesis. Journal of Consumer Research, 9(1), 90–98.
