You know how there’s often three sizes of something, say coffee, for example. Small, medium and large. Alternatively it could also be three price tiers; iPhone cheap, iPhone normal and iPhone expensive. Well more often than not the most expensive one is there so that people can go like: “$1499 for a phone?!? Absolutely not, I’ll go with the more affordable $999” version" - just like Apple wanted you to.

Customer behaviour is among the most studied psychological phenomenoms out there. No matter how stupid you think some ad is, it still works. It might not make a noticeable difference on individual level, but when you show an advertisement to million people, then it starts showing effect.