A/B Test Idea: Sort your prices in descending order as the default

There are a lot of factors that can influence a consumer’s perception of price. People usually use the initial bit of information to make purchasing decisions. If you sort by descending price by default, potential customers will see the most expensive ones first and then use that as the guiding point to evaluate the pricing of your other products.

As such, prices sorted by descending order will be perceived as better value in comparison because of the anchoring effect to the higher prices that preceded it. This is an example of the framing effect, the idea that the way information is presented influences the way people assess it. In this case it is the way price information is presented, specifically the sequence in which it is shown, that influences how people perceive it.

Another way that the framing effect can be used to influence perception of price is by reducing the perceived cost of a purchase. For example, rather than saying “99 cents” you could say “less than a dollar”, or instead of saying “$4.99” you could say “under $5”. This is termed price framing because the way in which a price is presented frames the way it is perceived.

Why we think this is a Good A/B Test:

According to a study by Ariely and Shampanier, presenting prices in this way significantly decreases the perceived cost of a purchase. In the study, participants were asked to choose between two products that were identical in every way except one was priced at $3.99 and the other at $3.49. They were then asked to choose between two products that were identical in every way except one was priced at $3.00 and the other at $2.99.

Their results showed that the first option (framed) was chosen by 65% of participants and the second option (unframed) was chosen by only 35%. This highlights how framing can be used to influence perception of price, and it can be used as a tool by marketers to increase the perceived value of a product, and ultimately increase sales.

References

– Ariely, D., & Shampanier, K. (2007).
Zero as a special price: the true value of free products.
Marketing science, 26(6), 742-757.