Pricing
Offer Discounts Toward the End of the Month
Discounts are more effective toward the ends of months because people have depleted their monthly budgets, and they are seeking ways to save money.
Payments are more painful with small budgets (Soster, Gershoff, & Bearden, 2014). Discounts are more appealing toward the of the month when budgets have been depleted.
Alternatively, give free trials at the beginnings of months when budgets are higher:
[free trials] might be better timed at the beginning of the month, or immediately after consumers receive tax refunds, in order to ensure that budgets are not approaching exhaustion at the time of purchase (Soster, Gershoff, & Bearden, 2014, pp. 672-673).
- Soster, R. L., Gershoff, A. D., & Bearden, W. O. (2014). The bottom dollar effect: the influence of spending to zero on pain of payment and satisfaction. Journal of Consumer Research, 41(3), 656-677.