Luxury items are placed next to cheaper, similar items to make you spend
You need a new white button-down shirt for work. You walk into a store and see a designer shirt for $99. There’s a similar, slightly cheaper white button down next to it for $75. Customers will be more likely to buy the cheaper shirt, feeling like they get a better deal. It’s called the “compromise price effect,” and it’s used to make customers buy more profitable merchandise while feeling like they got a better deal.
