November 10, 2014 - No Comments!

Innumeracy: How Your Pricing Strategy can take Advantage of Mathematical Ignorance by Miranda Steinway

"Essentially, consumers would rather “buy one month and get the next free” than “receive 50% off [their] first month."

"The team exposed this incompetence through a series of studies that asked consumers which deal they would prefer: a 50% increase in quantity or a 33% discount in price. The secret: they’re both the same offering. Despite their mathematical equivalence, they found consumers overwhelmingly assume the quantity increase is a better value. What’s even more interesting is that the results stayed true even when the discounted product was blatantly a better deal."

Published by: benbrewer in UX

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