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Chief
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Potential employers ask about that as they're worried you'll leave quickly if you find something better. So it's important to give them a credible reason. If you were in a situation previously that had a lot of managerial work, you can say you'd rather be an individual contributor. Or if the industries are different, you can say you're happy to take a step back to change the long-term direction of your career. Or there may be other reasons that come to mind. The main thing is to address the retention issue and make it clear that you won't be leaving quickly.
I figure the employer was trying to find more explanation on why you applied to their company. One of the reasons I can think of is to maintain your expectation, that they're trying to find someone for this particular position/pay that is lower than your expertise, which gives less benefit than your skillset.
To answer that, for me I appreciate reasonable responses. For example, you apply to this lower position because you're new to the field, so you'd like to learn from junior position (you're pivoting), or you apply to this lower paying job because in return for a little downgrade in pay you can get nearer workplace from your home.
Chief
I would frame it as a conscious choice. I would explain what I value in the role rather than focusing on the step down.
Answer truthfully. I once had a young lady to interview for a position where she would be taking a pay cut. Turns out the reason she was willing to do so was because she was on a final warning with her current employer. So always be honest with your answer.