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One simple psychology tip to help you increase sales:
Dan Ariely gave a presentation that broke down the psychology behind The Economist’s pricing structure.

The Economist used to have three price points.

Online: $59
Print-Only: $125
Print & Web: $125
Looking at it, the print-only option looks pointless.

But, it’s not...
Dan Ariely led a study where he gathered 100 MIT students and presented them with two different pricing options.

He presented the first 100 students with the current pricing structure:
• 16% said they’d purchase the online only option
• 0% said they’d purchase the print only option
• 84% said they’d purchase the online and print option

But, when Dan Ariely eliminated the middle option and presented it to another 100 students - the results changed:
So, what was the most popular option became the least desired option.

Now:

• 68% wanted the online only option
• 32% wanted the print & online option

So, what seemed useless was useful in helping consumers determine what they wanted.

Why?
Because the middle option served as a decoy to make the premium purchase look like an unbeatable deal.

This is called The Decoy Effect.

But here’s how to make it even better...
Sorry, quick note.

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Onward...
. @dtcpages asked a great question on Twitter, “Can you guess the winning test variant?”

And one of the variants is more than $20k per month more valuable than the other.

Here are the options:
The correct answer is B.

Here’s why:

• Shifting the best value offer to the right while using an eye-catching color
• Displaying the comparison price larger than the discounted price
• Displaying the price per day minimizes the mental cost
So, putting it all together:

• Use the decoy effect to help consumers determine what they want
• Add a middle option that makes the premium purchase seem like a great deal
• Use a different color to make the premium purchase eye-catching

(Continued)
• Make the comparison price or original price much larger than the discounted cost
• Minimize the mental costs by adding a price per day that shrinks the cost with logic
Plus, if you want to follow me @alexgarcia_atx then expect a galore of growth marketing content on your feed.

I spend all my time researching, writing, and distilling it here so you can learn as you scroll.

Content to come:
• landing pages
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Here's the full video from Dan Ariely where he breaks down the test:

Another note: follow @danariely. I’ve learned a ton from him.

And he has a great website with a ton of content worth diving into:

danariely.com
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