Answer
Dec 30, 2020 - 11:16 AM
I advise you to do a sequential test since it is tricky to do a strict A/B test on pricing, and the result of one case study with even subtle differences from your situation might not be reproducible.
That said, I am willing to bet on the higher price and free shipping. We’ve seen this in our testing and Jonah Berger corroborates it in his new book The Catalyst: How To Change Anyone’s Mind.
“A free shipping offer that saves $5.99, for example, is more appealing to many customers than a discount that cuts the item’s price by $10, because the real barrier isn’t money; it’s uncertainty: Will I like the shoes? Will they even fit? Dropping the price by $10 helps on the money front, but it doesn’t reduce the uncertainty. The product is cheaper, but it doesn’t provide any better sense of whether I’ll like the shoes or whether they’ll fit. And having to pay to get the opportunity to resolve that uncertainty only makes people less likely to act. They might as well hit pause and do nothing instead.”
That said, I am willing to bet on the higher price and free shipping. We’ve seen this in our testing and Jonah Berger corroborates it in his new book The Catalyst: How To Change Anyone’s Mind.
“A free shipping offer that saves $5.99, for example, is more appealing to many customers than a discount that cuts the item’s price by $10, because the real barrier isn’t money; it’s uncertainty: Will I like the shoes? Will they even fit? Dropping the price by $10 helps on the money front, but it doesn’t reduce the uncertainty. The product is cheaper, but it doesn’t provide any better sense of whether I’ll like the shoes or whether they’ll fit. And having to pay to get the opportunity to resolve that uncertainty only makes people less likely to act. They might as well hit pause and do nothing instead.”
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