What are some of the psychological effects of menu item placement on customer behavior?

1 The primacy and recency effects

The primacy and recency effects are cognitive biases that make people remember the first and last items in a list better than the ones in the middle. This means that customers are more likely to notice and order the dishes that are placed at the beginning and end of each menu section. To leverage these effects, you should place your most profitable and popular items in these positions, and avoid putting low-margin or low-demand items there. You can also use visual cues, such as boxes, colors, or icons, to draw attention to these items and reinforce their appeal.

2 The decoy effect

The decoy effect is a phenomenon that occurs when a third option is added to a choice set, making one of the original options seem more attractive than the other. For example, if you offer a small and a large salad for $5 and $10 respectively, customers may be indifferent between them. But if you add a medium salad for $9, customers may perceive the large salad as a better deal and choose it more often. The medium salad is the decoy that makes the large salad look more favorable. You can use this effect to increase the average check size by adding decoy options that make your target items stand out.

4 The compromise effect

The compromise effect is a preference for the middle option in a choice set, especially when the options differ in quality and price. For example, if you offer a cheap, average, and premium wine, customers may opt for the average wine as a compromise between saving money and enjoying quality. The compromise effect can help you sell more of your mid-range items by positioning them as the balanced choice. You can also use it to nudge customers away from your extremes by making them seem too risky or too extravagant.

5 The scarcity effect

The scarcity effect is a desire for something that is limited or hard to get, based on the assumption that it is more valuable or desirable. For example, if you see a sign that says "only 3 left" or "limited edition" on a product, you may feel more compelled to buy it before it runs out or someone else gets it. You can use this effect to create a sense of urgency and exclusivity for your items by indicating that they are scarce or in high demand. You can also use it to introduce novelty and variety by offering seasonal or daily specials that are not always available.

6 The framing effect

The framing effect is an influence of the way information is presented on how it is perceived and evaluated. For example, if you describe a dish as "low-fat" or "95% fat-free", customers may have different reactions depending on whether they associate fat with health or taste. You can use this effect to highlight the benefits and features of your items by choosing words and phrases that appeal to your target audience and match your brand identity. You can also use it to avoid negative associations or expectations by avoiding words and phrases that may trigger them.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?