Published: Feb 24th, 2025
The Psychology Behind Self-Order Kiosks – Part 3: The Decoy Effect
Ever walked up to a self-order kiosk and faced a decision like this? $3 for one - $5 for two Which one would you pick? Most people instinctively go for the second option. Why? Because it feels like the better deal and that’s the Decoy Effect in action. Welcome to Part 3 of The Psychology Behind Self-Order Kiosks, where we dive into the subtle but powerful pricing strategies that increase revenue and enhance the customer experience all without customers feeling pressured.
What is the Decoy Effect?
The Decoy Effect is a pricing strategy where a slightly less attractive option is introduced to make a premium option seem like a better deal.
For example, let’s say you own a QSR (Quick Service Restaurant), and you offer these options:
- Small drink – $3
- Large drink – $5
- Medium drink – $4.75 (decoy option)
Most customers will ignore the small size and opt for the large because it offers more value for just $0.25 more than the medium.
This small pricing tweak leads to a higher average order value—without any aggressive upselling.
Why Self-Order Kiosks Execute the Decoy Effect Seamlessly
Self-order kiosks are perfectly designed to implement this strategy because they:
- Present pricing visually – Customers can easily compare the options side by side.
- Use engaging UI/UX – Digital menus make the premium option stand out with bold visuals, colors, and price comparisons.
- Eliminate social pressure – Customers feel more comfortable upgrading without worrying about a cashier’s opinion.
- Encourage higher spending – With bundle pricing and upsell prompts, kiosks naturally guide customers toward premium choices.
Real-World Impact: How Businesses Benefit from the Decoy Effect
Restaurants and QSRs that implement the Decoy Effect in self-order kiosks report:
- Higher sales of premium items – Customers naturally select the higher-value option.
- Increased average order value (AOV) – Subtle pricing shifts lead to larger purchases.
- Better customer satisfaction – Guests feel they got the best deal, leading to a positive experience.
For example, instead of just ordering a single burger, a customer might opt for a meal combo if the pricing suggests a better value.
Curious About How This Can Elevate Your Business?
Want to see how self-order kiosks can use smart pricing strategies to increase revenue and improve the customer experience?
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