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Pro tip: Have at least three pricing levels with directly comparable features. It will increase the number of sales for the intermediary level.
by acangiano 16y ago
Pro tip: Have at least three pricing levels with directly comparable features. It will increase the number of sales for the intermediary level.
- jacquesm 16y agoI've heard that one before and I've seen sites that do it but I have yet to find a place where there is actual evidence that it works, do you have a reference for that? We're debating trying this and I'd like a bit more evidence that it really works and why it does.
- tomkinstinch 16y agoHere are a few citations, not all directly relevant, from Dan Ariely's _Predictably Irrational_ (itself a good read for any startup founder): ___________________________________ 1. Amos Tversky, "Features of Similarity," Psychological Review, Vol. 84 (1977). 2. Amos Tversky and Daniel Kahneman, "The Framing of Decisions and the Psychology of Choice," Science (1981). 3. Joel Huber, John Payne, and Chris Puto, "Adding Asymetrically Dominated Alternatives: Violations of Regularity and the Similarity Hypothesis," Journal of Consumer Research (1982). 4. Itamar Simonson, "Choice Based on Reasons: The Case of Attraction and Compromise Effects," Journal of Consumer Research (1993). 5. Amos Tversky and Itamar Simonson, "Context-Dependent Preferences," Management Science (1993). 6. Dan Ariely and Tom Wallsten, "Seeking Subjective Dominance in Multidimensional Space: An Explanation of the Asymmetric Dominance Effect," Organizational Behavior and Human Decision Processes (1995). 7. Constantine Sedikides, Dan Ariely, and Nils Olsen, "Contextual and Procedural Determinants of Partner Selection: On Asymmetric Dominance and Prominence," Social Cognition (1999).