Pricing and value perception
How a price is judged, not only what it is.
People rarely know what something should cost, so they judge a price against whatever happens to be nearby: the price beside it, the price it used to be, the cost of getting it delivered. These 12 principles cover reference prices, price endings, free delivery, discounts and how costs are split or framed.
Anchoring The first number people see biases their judgement of later numbers. Mainly Product, also Homepage, Category, CartMainly here Tested on real shoppers Strong Discount framing (% vs £) The same discount feels bigger as a percentage on cheap items and as a cash amount on expensive ones. Mainly Product, also Homepage, Category, CartMainly here Tested on real shoppers Moderate Evaluability (joint vs separate evaluation) Attributes that are hard to judge in isolation only influence choice when options are seen side by side. Mainly Search, also Category, ProductMainly here Tested in shopping-like settings Moderate Left-digit effect £19.99 feels meaningfully cheaper than £20 because the left-most digit dominates. Mainly Product, also CategoryMainly here Tested on real shoppers Moderate Mental accounting People sort money into mental budgets and judge spending within them. Mainly Cart, also Product, CheckoutMainly here Tested on real shoppers Strong Pain of paying Paying registers as a loss, and the more visible the payment, the more it hurts. Mainly Checkout, also CartMainly here Tested on real shoppers Moderate Partitioned pricing Splitting a price into a base price plus surcharges changes how the total is perceived, usually making it seem lower because the surcharges get less attention. Mainly Cart, also Category, Product, CheckoutMainly here Tested on real shoppers Strong Price-quality heuristic When quality is hard to judge, people read a higher price as higher quality. Mainly Product, also CategoryMainly here Tested on real shoppers Moderate Search costs and price sensitivity What is easy to search on becomes what people choose on: easy quality information lowers price sensitivity, easy price comparison raises it. Mainly Search, also Category, ProductMainly here Tested on real shoppers Moderate Sort-order effect The direction a list is sorted in changes what people choose: descending price or quality order pushes choice towards higher-priced options. Mainly Search, also CategoryMainly here Tested in shopping-like settings Moderate Temporal reframing (pennies-a-day) A cost feels smaller when broken into a small daily or per-use amount. Mainly Product, also CartMainly here Tested on real shoppers Moderate Zero-price effect 'Free' is disproportionately more attractive than a very low price. Mainly Cart, also Homepage, Product, CheckoutMainly here Tested on real shoppers Moderate
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