Which One Should I Choose? - Avoiding Extremes
Avoiding extremes (the compromise effect) is a psychological tendency where, when presented with options, people tend to avoid extreme choices (the highest or lowest) and are more likely to choose a safe, middle-ground option.
This is a technique often used in marketing and menu creation, and it has the following characteristics, for example.
The Pine-Bamboo-Plum Rule: When three price points (3,000 yen, 5,000 yen, and 8,000 yen) are provided, most people choose the middle option of 5,000 yen.
Reason: This is because of the psychological drive to 'avoid failure'—the feeling that 'the cheapest one might be poor quality, but the most expensive one is too extravagant.'
1. Why are we drawn to the middle? (Psychological background)
Loss aversion: Humans prioritize 'not losing' over 'gaining.' As a result of trying to avoid both the risk of buying something cheap and ending up with 'penny-wise and pound-foolish' results, and the risk of buying the most expensive item and 'wasting money,' the middle option appears the safest (lowest risk).
Ease of justification: It is easier to explain to others or oneself that 'I chose something that was neither too expensive nor too cheap, but just right,' which increases satisfaction with the choice.
2. Number of options and ratios
Three options are most effective: If there are only two options (expensive vs. cheap), it becomes a choice between prioritizing price or quality, which causes hesitation. However, when there are three, a 'middle' escape route is created.
Selection ratio: Generally, when three options (Pine, Bamboo, Plum) are presented, the selection ratio is said to be around '2:5:3'.
3. Applied technique: The decoy effect
By intentionally adding one 'very expensive option,' you can make the middle-tier product, which previously felt 'expensive,' appear 'relatively affordable.'
Example: If you want to sell a 5,000 yen product, introduce a new 10,000 yen premium plan. Then, the 5,000 yen option is no longer the 'extremely expensive choice,' making it more likely to be selected.
4. Points to note
When the differences are too extreme: If the gap between the middle and the upper/lower options is too wide, they will not function as effective points of comparison.
It does not work on those with specific preferences: Experts in the field or those who only pursue price will choose based on their own criteria, so this psychological effect is less likely to work.