TLDR Marketing · STRATEGIES & TACTICS

DON'T RECOMMEND YOUR MOST EXPENSIVE OPTION

app.sciencesays.com2 min read

Summary from the TLDR Marketing newsletter

Increase sales by labeling a mid-priced product as “recommended” instead of your most expensive option. In eight experiments involving more than 6,200 participants, sales of a recommended cafe drink increased 58% when a pricier option was added, while sales were unchanged without the recommendation. Consumers appear more receptive to recommendations when the suggested product is cheaper because the brand seems less motivated by profit. Use objective badges such as “Bestseller” when recommending a premium product, and test this pricing tactic on comparable products where customers can easily evaluate the price difference.