Latest / The Pricing Marketing Podcast with Fexingo: Price Anchoring, Bundling, and Conversion Pricing
How The Economist's Three-Tier Pricing Made the Middle Option Most Popular
In this episode, Lucas and Luna explore the famous Economist subscription experiment that used a three-tier pricing structure to steer customers toward the most profitable option. They break down why the $125 print-plus-web option became the best seller compared to the $59 web-only and $125 print-only tiers, revealing how a strategically placed decoy anchor can make a higher-priced bundle feel like a bargain. The hosts also discuss the psychology behind the Goldilocks effect—why consumers gravitate toward the middle option—and how modern subscription businesses from streaming services to SaaS…
The skinny
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