Beer price experiment
How Does Price Presentation Influence Consumer Choice?
How can you influence customers to choose a more expensive option?
Sort products from high to low prices.
In 2012 the psychologists Suk, Lee, and Lichtenstein ran a fun field experiment in a small local pub that serves bottled beer.
They created two versions of the beer menu.
Menu 1 listed 13 bottled American and imported beers, listed from top to bottom in ascending price order.
Menu 2 listed the exact same beers, but from top to bottom in descending price order.
In menu 1 the prices were $4, $4, $4, $5, $6, $7, $7, $7, $7, $8, $8, $9, and $10.
In menu 2, the list was totally reversed.
The experiment lasted 8 weeks (and 1,195 beers).
During this period Suk, Lee, and Lichtenstein alternated the sequence of beer prices.
The results? Revenue was higher when they sorted beer prices from high to low.
Thanks to a simple change in price order, the bar owner now makes an extra $0.24 (on average) for every beer sold.
P.S. This piece was originally posted in my Nishi weekly newsletter where I share colorful thoughts on copywriting + loads of helpful resources and interesting stories. Subscribe to my newsletter here.
( « Few winemakers have a story quite like Charles Smith.)