Pricing Psychology Experiment

Format: Understand the psychological effects of pricing.

Effect 1: Anchoring Effect

Plan A: Basic $9/month | Pro $29/month
Plan B: Basic $9/month | Pro $29/month | Enterprise $99/month

In Plan B, $29 looks much "cheaper" -- because $99 serves as the anchor.

Effect 2: Decoy Effect

Small $3 | Large $7 -> Most people choose small
Small $3 | Medium $6.50 | Large $7 -> Most people choose large (because medium is the "decoy")

Effect 3: The Magic of $0

Free vs $0.01 -- the difference is more than just 1 cent.
$0 triggers a different psychological mechanism: "free" means zero risk.

Exercise: Analyze the pricing pages of 3 SaaS products you currently use and identify which psychological effects they employ.