I find this statement at odds with this one:
The very best startup ideas, the ones that are the biggest successes, tend to be the ideas that you don't know are even going to work.
The very best startup ideas, the ones that are the biggest successes, tend to be the ideas that you don't know are even going to work.
EDIT: A better example. Before Ford released the F-150, it seemed to be a solution in search of a problem. It was somewhere between the F-100 and F-250 and none of the pre-market reviewers really seemed to like it. Ford released it anyway. The F-150 went on to become the most popular variant of the best selling truck series for 34 years.
The thinking behind its success is likely similar: the highest tier of service often acts as a decoy for the one you really want them to pick... the second highest plan. It gives customers a reason to reject the "luxury" option and settle instead for the middle of the pack option which is only slightly more expensive than the cheap option, allowing them to feel like they made the sensible choice.