Decoy Pricing Strategy is a marketing tactic used by companies to influence consumer buying decisions. The strategy involves presenting customers with different pricing options – one of which is deliberately set at an unusually high price (“the decoy”), while the other two are much more reasonable. This makes the middle option look like the most attractive option, and more likely to be purchased than if it were presented on its own. By displaying a less expensive option that doesn’t measure up to the mid-priced option’s features, the middle choice appears even more desirable. Used wisely, the Decoy Pricing Strategy can be an effective way to increase sales and drive revenue.