Partitioned and Bundled Pricing
Splitting a price into parts can make it feel smaller. Bundling can make it feel simpler.
What it is
A price broken into components, such as a base fee plus a small delivery charge, is judged mostly on the base and feels lower than the total. A bundle that combines several items into one price hides the individual costs and reduces the number of pain points. Which to use depends on whether the customer is comparing prices or evaluating value.
The research
Consumers exposed to partitioned prices recalled lower total costs and showed higher purchase intent than those shown the combined price.
Morwitz, Greenleaf and Johnson, 1998
How to use it
Partition when the base is the comparison
For a service quoted against competitors, show the core fee prominently and the add-ons separately.
Bundle when the total is the story
A "growth system" at one monthly fee beats five line items that each invite a "do we need this?".
Related
Sources that shaped this entry: Kolenda.io.