Apologies for the blatant plug but for anyone interested, I also just wrote about another SaaS pricing strategy yesterday here: http://technicalmarketing.io/cro/saas-pricing-technique-deco... I figured it might be helpful for some people here.
Two questions:
(1) would trying this with products that don't include anything physical alter the effect?
(2) how ethical is it to use the Decoy Effect?
I am not really sure why ethics would come into this discussion. Do ethics come into picture when you are considering/selecting databases or programming languages?
edit: rephrased.