Ames, Iowa — An Iowa State University expert on business analytics says adding an extra option to product or fundraising pitches can improve sales.
Abhay Mishra co-authored study that shows adding a third “decoy” option for consumers could sway them to buy.
Mishra says it makes the customer think more about the options.
Mishra says it could be hard for a customer to pass up the middle option that costs less.
Mishra says the decoy option plays on what’s called behavioral economics.
Mishra is an associate professor of information systems and business analytics. He says it’s the first study to test this approach in digital markets where billions of people make choices every day.
