University of Minnesota have used brain scans to show that it’s easier for people to make a decision when a third product option is present vs. choosing between just two possibilities.
Overall, the presence of the extra, “just okay” possibility systematically increased preference for the better options. The fMRI scans showed that when making a choice between only two, equally preferred options; subjects tended to display irritation because of the difficulty of the choice process. The presence of the third option made the choice process easier and relatively more pleasurable
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Emphasis added. From Inside the consumer mind: U of M brain scans reveal choice mechanism.]
Good, Better, Best?
It has long been a common practice to offer three options – a “good” product for the value shopper, a “best” product from the shopper willing to pay a premium, and a “better” product for everyone else. That’s classic “compromise” marketing as the high-end product makes the mid-priced product look like an excellent choice.
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