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Pricing Psychology Principles – The Numerosity Adaptation Effect | Guess the Test

Application To Your Pricing Strategies
How can you use this knowledge to craft your own pricing strategies?

One takeaway is to realize that people tend to gravitate towards smaller numbers because they’re easier to visualize and understand.

Applying the Numerosity Adaptation Effect, you can test the effect of using smaller, simplified numbers to drive conversions.

For example, if you’re a CRO specialist working in the natural health industry, you might apply this knowledge to help guide a client to better price their protein powder.

Let’s say your client sells two sizes of protein powder and you’re working to optimize the site to increase overall sales.

A strategic move would be to test pricing the smaller bottle similar to the larger bottle.

Wait. What? Price the smaller bottle similar to the larger?

That’s right!

Some pricing research shows people are more likely to choose a product option if the choices are similar, but there is a small price difference.

So, it’s to your advantage to offer choice in products, but make the pricing difference between the products nominal.

You might, for example, try pricing the smaller bottle at $44.99. While the similar, larger bottle could go for $49.99.

At first glance, both bottles look similar, but the smaller jar seems cheaper.

Breaking down the price on a per pound basis, the larger can is actually the better deal.

Yet, many people will gravitate towards the lower-priced bottle because they haven’t fully considered how the unit size impacted price.

And, this is the Numerosity Adaptation Effect in action!

The great news is, you can use it to your advantage generate more sales of the smaller, more expensive bottle.

Read complete article here:

Pricing Psychology Principles – The Numerosity Adaptation Effect – Guess the Test.

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