In a 2007 study, researchers Coulter and Coulter found that customers were more likely to buy when prices ended in smaller numbers. For example, a £244 flight ticket felt like a better value than a £233 ticket. This is because people more easily differentiate between smaller numbers.
Researchers have since tested various pricing strategies to see what works best for customers. One study found that breaking down the price per unit performed better with customers. For instance, showing the total cost of 21 meals (£78.96) versus the price per lunch ($3.76) made the purchase feel more reasonable and affordable.
Companies looking to upsell their audience should also consider using differential price framing. A study showed that when a premium plan was labeled as an "additional $7," customers were more likely to choose it, rather than seeing the full price of $16.99.
Price transparency can also be effective in increasing sales. One study found that making the costs visible increased soup sales by 21%. Additionally, small differences in pricing can make a big difference. For example, when two packs of gum were priced at ₩630 and ₩640, only 46% made a purchase, but when the prices were adjusted to ₩620 and ₩640, 77% made a purchase.
