Compromise effect
Given a range, people tend to avoid the extremes and pick a middle option.
Where it applies
Two of the eight page areas.
How to use it
Three ways to put it to work.
- Offer good, better and best ranges with the option you most want to sell in the middle.
- Show the tiers side by side so the range is obvious.
- Add a genuine premium tier above the middle option, which can lift its share.
What the research found
Middle options are chosen more often, though the size of the effect varies a lot.
On a restaurant menu, dishes that became the middle option gained on average five percent in market share.
A meta-analysis of 142 experimental observations found middle options are chosen significantly more often, though the size varies a lot with study design and how it is measured. In field data from a restaurant menu, dishes that became the middle option gained on average five percent in market share.
Key research
Four sources, each checked.
Last reviewed
Simonson (1989) Choice Based on Reasons: The Case of Attraction and Compromise Effects J. Consumer Research Read the source Simonson & Tversky (1992) Choice in Context: Tradeoff Contrast and Extremeness Aversion J. Marketing Research Read the source Neumann, Böckenholt & Sinha (2016)Meta-analysis A meta-analysis of extremeness aversion J. Consumer Psychology Read the source Pinger, Ruhmer-Krell & Schumacher (2016) The compromise effect in action: Lessons from a restaurant's menu J. Economic Behavior & Organization Read the source
Before you use it · UK law
All tiers must be real products you are willing to supply at the stated price.
This is simply a pointer to check, not legal advice. Seek legal advice before you put this principle into action.