A/B Testing Idea #106 - Give the possibility to pay in instalments

Tactic_Give the possibility to pay in instalments


The way in which a price is presented to your customer can greatly influence how they perceive the value of it. For example, offering people the option to pay in installments will subconsciously make them feel as though they are getting a better deal even though it is the same price overall. A price that is displayed as £99 per month for 5 months is much more attractive than a price that is simply displayed as its total of £495. This is why subscriptions work so well as well - giving customers the chance to pay monthly instead of in one annual lump sum not only makes it more financially viable but also makes them feel as though they are paying a smaller amount as it is the installment amount which carries the most weight in our perception of the price.

Inspired by Nick Kolenda 


  • Perceived Value Pricing (Lee & Zhao, 2014; Poundstone, 2010; Mazumdar; Raj; Sinha, 2005; Thomas; Simon; Kadiyali, 2007)
  • Anchoring Effect (Tversky & Kahneman, 1974)

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.

Anchoring Effect

The Anchoring Effect describes the way in which people utilise the first piece of information they receive as a point of reference for making judgements about subsequent pieces of information.

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