Have you ever noticed that customers are more likely to buy your ‘better’ option, even if there is hardly a difference between Good and Better? There is a reason behind it. It is called the Compromise Effect. What the heck is that? Let us tell you.

Compromise Effect

The basic definition is that people don’t want to make an extreme decision so they will compromise and choose the mediocre option. Sometimes the person is concerned about price but doesn’t want the worst product. As a result, they will go to the middle option.

With the middle option, they don’t have to pay as much for the high-end product but they still get a better product.  At least better than the good option.

These days, especially with all the options available on the internet and your local stores, there are seemingly endless options available to everyone. If you don’t offer options to a customer they may get upset or look elsewhere. Depending on your target market, having good, better, and best available to them may be the only way to keep them as your customer.

Real World Examples

Go to any mattress site, they have at least three options for their customers.

Go to any car dealership, there is the less expensive, low end, no features model, the midrange model with some features, and then the fully loaded option….at a premium, usually inflated price.

Go to the liquor store. Bottom, middle, top row alcohol options are available.

Go to Ikea! Most people in the checkout line have the mid-range options, that are a bit better quality than the low end, but way less expensive than the high-end products!

Apply to your Company

Provide your customers with options. At least three is advisable. Many companies do more than that. Give the people what they want: options!


Let us know when you have fallen victim to the compromise effect in the comments below!