Pricing
Don't Bundle Cheap and Expensive Items
Customers focus on the average, rather than the sum.
Cheap items detract value from expensive items. Don’t bundle a $500 home gym with a $5 fitness DVD (Brough & Chernev, 2012).
Customers sum these values, but subconsciously, they also average them. In addition to $505, it also feels like $250.
- 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.