The Decoy Effect Within Alcohol Purchasing Decisions

ABSTRACT

Background: The decoy effect is the phenomenon where the introduction of a third choice to a decision dyad changes the distribution of preferences between options. Objectives: Examine whether this effect exists in alcohol purchasing decisions and whether testing context impacts this. Method: Fifty-two participants tested in either a bar or library context and were asked to choose one of a series of beer and water deals presented for timed intervals. In some cases, two options were presented (with similar attractiveness) and in other cases a third, less preferable, decoy option was added. Results: A basic decoy effect in both alcohol and water purchasing decisions. Specifically, there were reductions in the selection of both the original options when the decoy was added into choice dyads. A significant interaction demonstrated in the bar context there was a significant difference such that there was a slight increase in participants selecting the most cost effective option when the decoy was added, and a simultaneous decrease in those choosing the moderately cost effective option. There were no such differences observed in the library condition. Conclusion: The same product may be perceived differently across contexts and, as such, consumers in a pub environment may be particularly vulnerable to the decoy effect.

KEYWORDS:

• Decoy effect
• alcohol
• selection
• purchasing
• context

Notes

1 Post-hoc power analyses were also run on the significant effects revealed. These found that the power (1 – β error probability) was above 0.6 for both (in fact the power was 0.8 for the main effect), acceptably close to the traditional standard of 0.8.

2 For the purposes of clarity, these are termed the “target” and the “competitor,” as the cost per bottle was slightly lower for the former. The cost per bottle of the decoy was always at least twice as much as that of the moderate cost-effective option.

3 Pilot research for this study utilized opportunity sampling but it was decided that random allocation would be beneficial in order to allay fears that those who were recruited in the pub testing condition could have been manifestly different from those who were tested in the lecture condition. Such concerns arise from suggestions that people seek out supportive social environments for their drinking and, as such, those who drink more (and have supportive cognitions) may be more likely to frequent a student pub (Senchak, Leonard, & Greene, 1998).

4 As BrAC levels were not taken until the end of testing, to avoid demand characteristics, testing took place between 1 and 6 P.M, in order to limit the potential for heavy intoxication (as per Monk & Heim, 2013a). Furthermore, intoxication exclusion criteria were adopted by the researchers: Would-be participants in the pub condition who were overtly excessively intoxicated and/or were not able to demonstrate to the researcher that they had understood the briefing and would be able to complete the task were not tested. This was done in order to provide assurances that all consent was appropriately informed.

Additional information

Notes on contributors

Rebecca L. Monk

Rebecca L. Monk completed her PhD in 2013 at Edge Hill University, United Kingdom, following the completion of her Undergraduate and Masters degrees in Psychology and Forensic Psychology respectively. Her key research interests are in social health psychology and her research investigates the effects of social and environmental contexts on alcohol-related cognitions. Her research has employed traditional survey and experimental research designs and has used context aware experience sampling methods hosted on smartphone applications.

Adam W. Qureshi

Adam W. Qureshi completed his PhD in Psychology at the University of Birmingham in 2009, going on to work at the Serious Games Institute and the Plymouth University Peninsula Schools of Medicine and Dentistry before joining Edge Hill University in 2013. His research interests are in social cognition, executive function and addiction research, as well as film performance and mobile technologies.

Thomas Leatherbarrow

Thomas Leatherbarrow is current 3rd year undergraduate student at Edge Hill University and worked on this project as part of a funded student internship scheme in the Department of Psychology. He is currently completing his dissertation research, titled “Implicit measurement of psychopathy using TMS.” He is on course to graduate in July 2016 with a top class honors degree.

Annalise Hughes

Annalise Hughes graduated from Edge Hill University in July 2015 with a second class honors degree, and she received a 2:1 for her dissertation project which examined the decoy effect in consumer purchasing decisions. She has since pursued further education, in the hopes of becoming a teacher.