Latest / The Pricing Marketing Podcast with Fexingo: Price Anchoring, Bundling, and Conversion Pricing
How a 30-Day Free Trial Anchors a 200-Dollar Annual Plan
Lucas and Luna explore the psychology behind the 'free trial' as a price anchor. Using a real-world case from a fitness app called FitFlow, they break down how a one-month free trial — valued at $15 — sets the stage for a $199 annual subscription. They discuss why the anchoring effect works so powerfully when the trial period is long enough to form a habit, and how the perceived loss of access drives conversion. The episode also touches on the behavioral economics of the 'endowment effect' and how companies like Spotify and Apple use this tactic. If you've ever signed…
The skinny
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