Pricing
Tactic
Don't Bundle Cheap and Expensive Items
Customers focus on the average, rather than the sum.
Overview
Cheap items detract value from expensive items.
Don’t bundle a $500 home gym with a $5 fitness DVD (Brough & Chernev, 2012).
Customers tend to average these values. By adding a $5 DVD, you're pushing the perceived value from $505 to $250. It's better economically, but it feels worse psychologically.
- Brough, A. R., & Chernev, A. (2012). When opposites detract: Categorical reasoning and subtractive valuations of product combinations. Journal of Consumer Research, 39(2), 399- 414.