A 2012 study[1] confirmed a surprising theory — introducing more options can significantly increase sales of higher-priced products. This was demonstrated in a behavioral pricing experiment:
Researchers tested two versions of banking product offers. Test A included two options; Test B included three.
Test A:
| Product | Price | Selection rate |
|---|---|---|
| Current account | 1.0 euro | 41% |
| Current account + credit card | 2.5 euro | 59% |
In Test A, customers could choose between a current account and a bundled account with a credit card. The price difference was 1.5 euros. 59% chose the more expensive bundle.
Test B:
| Product | Price | Selection rate |
|---|---|---|
| Current account | 1.0 euro | 17% |
| Credit card | 2.5 euro | 2% |
| Current account + credit card | 2.5 euro | 81% |
In Test B, a third option was added — a standalone credit card for 2.5 euros (same price as the bundle). The result: 81% chose the bundle. The average revenue per customer increased by 28%.
Why did this happen?
The extra option changed the context. Customers compared two products with the same price:
– credit card only
– credit card + current account
The bundle now seemed like the better deal — the current account felt “free.” This also triggered a price anchor effect: two of the three items cost 2.5 euros, making it the mental benchmark.
Takeaway: add a less appealing product to your offer that highlights the value of your main product by contrast — and watch conversions rise.
[1] Trevisan, 2012, “The Impact of Behavioral Pricing”
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