That's the definition of price anchoring... That makes look like the $150 device is a bargain, because for ONLY $20 more you get the HRM, distracting from the more objective consideration of the price of the item.
How does price anchoring work with physical products though?
They still have to manufacture the product at the lower price point because someone will buy it, do they just manufacture less stock for the lower price point (and higher for the other two) and hope the demand doesn't exceed the stock levels?
