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228

We want it to feel cheap when we buy but not when we give.


75

The Three-tier Pricing Strategy always works because often customers don't know what they need. So in one simple chart, you show them what they can get for different prices. They feel like they have a choice and do not feel like they are being swindled. You want to do business by making the majority of them choose the intermediate one. Much like many ...


50

The psychology behind the $0.99 was explored in depth in Priceless: The Hidden Psychology of Value, which if you ask for my humble opinion, is a life-changing book. Partly the reason for such price tags is that it translates for many as a 'sale' price. Against it, is that it is typically associated with 'hard sale'. The donation payment system is in its ...


31

There are a few reasons behind this... Implicit Option If a customer is deciding whether to choose your product or not, and there is a single option available, then the choice is binary. They can choose to buy it or not. If you present 3 choices, then they tend to forget about the implicit option to not buy the product. Centre Stage Effect When 3 ...


27

It's explained in Amazon's website, in this page Why don't we show the price?: Retailers like Amazon have the legal right to set their own prices independently, but some manufacturers place restrictions on how those prices may be communicated. Because our price on this item is lower than the manufacturer's "minimum advertised price," the ...


23

The psychology behind the $99 was explored in depth in Priceless: The Hidden Psychology of Value, which if you ask for my humble opinion, is a life-changing book. 9 is the Magic Number A price such as $99, or $14.95 are known as charm price. Research suggests that the most effective charm price is that ending with 9. A University of Chicago/MIT research (...


18

My expertise is in motivation theory and educational psychology, so I'll offer my 2 cents up from that perspective then on to the big picture. This is a very old and well studied psychological effect. In its simplest form, it is used by parents and teachers regularly: Scenario 1: Do it or else. You give a kid the choice between doing an assigned ...


10

Izhaki's answer pretty much covers everything related to the UX and psychology behind the x.99 pricing. But there's more -- the x.99 pricing is the key to a killer marketing strategy -- figures for discounts and offers are cleverly crafted numbers, which are almost always impossible to reach without buying one extra item. Why? Because discounts are offered ...


9

Pricing strategy is not universal, and what may work on one site might not on another. You really have to do some A/B price testing, and see what works. However, I would always give the person that chose to buy at a higher price, whichever the lower price is. It will save you a lot of animosity if you do that. That said, I read a study that was part of a ...


9

This is a strategy usually followed by companies that follow price discrimination as a strategy. This could be because: The cost of providing that product actually depends (usually statistically) on who is asking for it. Think of insurance companies here, where a healthy 18 year old with no history of medical problems is likely to cost a lot less to ...


9

I've been suggested it might be a good idea to require an email address for the first two plans before showing the price. This would also discourage people from staying on your site. I personally would have to be very motivated to leave my email address on your site for a product which I don't even know if I want. I'm not alone in this and price is one of ...


8

As per the article from UX Movement Place Them in Descending Order It’s a lot easier for users to move down on pricing than it is for them to move up. Start them off at the high-end and they won’t be able to ignore your high pricing plans. Start them off at the low-end and they’ll likely ignore the higher pricing plans and consider only the ...


8

Pricing is an important marketing tool and well understood by science in the late 80. Supermarkets were the driver for this research. Shoping at stores is sooo incredible designed, you wouldn't believe it, if they tell you everything they do. If you search for pricing strategies online, you will find a lot of resources at universities of economy. I've read ...


7

It all depends on what product you are trying to sell and what question will you be helping the user to answer. These could fundamentally affect how the pricing information is presented. For instance, "which flavor of your product should I be buying?" (lead by feature) is a totally different question from "What is the cheapest price I can buy your product ...


7

As already noted in some comments, the three-tier product range design has both psychological and economic reasons. I would like to explain the economics a little more. One Tier Imagine you want to offer a service with only one tier. How do you price it? Your market research shows that you will have two groups of customers: professionals who would use ...


6

I have a book somewhere (don't remember which, need to look it up) which explains that it's more important to have a short number, rather than low. $9.99 looks longer (larger) than $10. Then again, $10.00 looks larger than $9.99 The same book suggested a whole different approach: If you have a product of $10, introduce another product of -say- $12. Even if ...


5

Don't hide pricing information from the buyer, especially if there's a chance that information could inspire them to "Proceed to checkout". Also, if they don't see the savings there, they might go to another site to look.


5

Perhaps you could consider a design where you have a bar-chart of prices over your period. I have seen a design like that on airline sites, and I liked it a lot. Horizontally, you'd set your arrival dates, and vertically the price. You'd start with a standard-length stay, that the user might customize. I am not sure if showing a single night would make most ...


5

No, I would strongly recommend otherwise. A month or so ago I was searching for a library that was compatible with Xamarin.iOS and Xamarin.Android. Technical stuff aside, I was comparing the product of different companies. Some companies provided a straightforward, fixed price, whereas other companies required you to leave info for a tender. The latter was ...


5

Showing multiple prices should not be an option. You can think a lot of reasons for that, like misunderstanding of users, perception of users, possible longer lists for countries which will be added in the future etc... So, you should show just one price, which leads us to another question: which price? You can find many answers for this another question ...


4

Overall I think that the effect from this will be negative for any sites in which the historical pricing is not a major factor (such as stock market websites). The sites for which it is useful are almost always targeted at professionals that (should) use objective criteria to evaluate whether to buy or not. When dealing with the general public, their ...


4

How Do Users Perceive This? People are uncomfortable being forced to take action. (It triggers the reactance response.) When a user is forced to take a specific action to receive information they have normally get "for free", it will create animosity. There is an Amazon discussion with many users who find the "Too Low to Show" ...


4

Given that your marker is going to be placed next to an article I'm assuming that its function will be to draw user attention. Generally speaking you don't want to draw user attention to regularities in your system but rather rarer events which in your case are the free articles. So that would be my preferred choice. I also think that free articles is what ...


4

IMHO, it's similar to asking a user to try your product for free for a few days and then pay x dollars per month/year as the case may be. Here is a link which you might find useful https://medium.com/@elise.musumano/ab-testing-growth-experiments-for-saas-8a2ac2ac97f0 The idea is not to push users to pay but invite them to try and leave it upto them to ...


3

Don't put your price inside the interaction point. If I am looking for a price then buttons are perceived as grey matter. I don't expect to find the answer there. I'm looking for specific visual clues: a dollar sign ($), the words "price" or "for only", a number with .99 after it. I can appreciate wanting to be tasteful, but your primary goal is ...


3

Studies done on the effects of price/promotion framing on price expectations and choice indicate that there are definite eCommerce benefits to offering this information to users at the product display page level. Also useful to decide how this information is displayed and whether to use cost saving, percentage saving or a combination of both. Some useful ...


3

I worked for a certain large online retailer for several years. I can tell you there's a continual back-and-forth going on between retailers and manufacturers on the issue of Minimum Advertised Price (or MAP). It's literally discussed at almost every meeting with a manufacturer. A few years ago, letting customers click to see the price instead of adding to ...


3

I know this question is old, and the purpose of misleading prices has been covered, but I don't see any explanations about why donations are round amounts. Simply put, taking donations as whole numbers is more convenient for charities. They don't charge taxes or give change, so they list preset donation amounts without fractions of whole numbers (eg, ...


3

My personal opinion would be to use one CTA per item and here is why: One CTA per My thought process: Observe choices I like plan "L" A dedicated button, hoorah! :) I bet if I press that button then the sign-up screen will not force me to choose again Yay! the sign-up screen is clearly marked with what I want, and it even has a <select> box for me ...


3

The simple reason is this is a technique used to exploit the cognitive functioning of the brain. $4.99 as opposed to $5 seems less because your brain is reading a 4 as opposed to 5 and naturally chooses to ignore the $0.99 unless you specifically put effort to recognise that $4.99 is just one cent less than $5. Online shoppers usually tend to browse ...


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