The small pricing tweak that boosted purchases from 46% to 77% | Nudge Newsletter


The Illusion of Choice

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Give people $1 and two identical packs of gum.

Same flavour. Same price.

What happens?

Most people aren't interested.

That’s what Kim, Novemsky, and Dhar¹ found in a South Korean experiment.

They gave participants ₩1,000 and two gum options, both priced at ₩630.

Only 46% bought anything.

But then they did something clever.

They made the prices slightly different: ₩620 vs. ₩640.

Now 77% decided to buy.

Same gum. Slight price difference. Big impact.

Why?

When two options feel the same, people struggle to decide. So if you're offering similar choices, don’t make them too alike.

Change something. Make one a bit cheaper, a bit quicker, or a bit more appealing.

That tiny tweak can make a big difference.


This is known as the paradox of choice.

Inside the Nudge Vaults you'll find 8 more insights specifically about this bias.

You can choose* between paying in full today.

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Did I feature in your Spotify Wrapped? Please let me know! — Phill

*Yes, that was a blatant use of the paradox.

¹Kim, Novemsky & Dhar (2013) in Psychological Science showing how small price differences can make similar options seem more similar and increase purchase rates.

As a behavioural science practitioner, I believe in the peak-end rule.

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