The Decoy Effect is a psychological phenomenon where consumers change their preference between two options when presented with a third, less attractive option. For example, if you’re choosing between a small popcorn for $5 and a large popcorn for $10, adding a medium popcorn for $9.50 makes the large popcorn seem like a better deal, even if you didn’t initially consider it. This effect highlights how choices can be influenced by context. Marketers often use the Decoy Effect to steer customers toward more expensive or profitable options. By strategically placing a decoy, they can enhance the appeal of their desired product, ultimately increasing sales.