Home

A/B Testing Idea #118 - Give discounts which are simple to calculate

Tactic_Give discounts which are simple to calculate

Description

Using precise, non-rounded numbers is a good way of making your prices seem smaller but one occasion when you don't want to do this is when you're offering discounts. You want your discounts to seem as significant and interesting as possible and so it is more effective to use rounded numbers to ensure these discounts are easy to compute.

People will see the difference between $4.97 and $3.97 as being smaller than between $5 and $4 simply because they can't compute the difference as easily or quickly and because precise numbers lend themselves to smaller values.

Inspired by Nick Kolenda 

Principles

  • Perceived Value Pricing (Lee & Zhao, 2014; Poundstone, 2010; Mazumdar; Raj; Sinha, 2005; Thomas; Simon; Kadiyali, 2007)
  • Cognitive Ease (Khaneman, 2011)
  • Magnitude Encoding Process (Oppenheimer; LeBoeuf & Brewer, 2007; Coulter & Coulter, 2005; Thomas & Morwitz, 2005)

The Research

Perceived Value Pricing

Perceived Value Pricing explains how our perceptions of a price and its value can be altered depending on how it is presented to us.

Cognitive Ease

The ease with which our brain processes information and how the level of ease impacts how positively we feel about something.

Magnitude Encoding Process

The way in which we perceive pricing can be affected by the way in which it is presented to us and so making use of size, placement or colour, for example, can influence how small the price appears to be.

Browse A/B Testing Ideas bycategories
Browse A/B Testing Ideas bytype of website
Browse A/B Testing Ideas bydefinitions

Oops, you have reached your limit of 1 free tactic per hour

To get unlimited access to our 250+ tactics,
Join our FREE mailing list

*

Or wait 00:59:59

Congratulations!

You have unlocked our library of 250 tactics.
Keep learning or sign up to Convertize.com to start
implementing them directly in your webste.

Convert more Browsers into Buyers, today.

Try for FREE

No credit card required

Amazon S3 Web Services icon
Convertize reviews
Stripe icon
SSL icon