Pricing Psychology & Revenue Models

Good-Better-Best Packages: Tier Psychology

Three-tier lineups nudge choices by design, with most buyers clustering in the middle plan. This quiz tests decoy logic, feature framing, and guardrails that keep tiers profitable and fair.

In a good‑better‑best lineup, the middle plan often acts as the ______ anchor.

inventory

compromise

loss

cost-plus

Positioning encourages customers to avoid extremes; the middle often balances value and price.

Which move most reliably increases mix toward the middle tier without cutting ARPU?

Raise ‘best’ price only

Hide fees in ‘good’

Add salient, low‑cost features to ‘better’ that many users value

Remove usage limits entirely for all tiers

Salient add‑ons that are cheap to deliver can shift selection without crushing margins.

A decoy tier primarily works by ______.

making the target plan look superior on value per dollar

increasing search rankings

lowering payment failure rates

reducing production cost

The decoy compares unfavorably to the target, steering choices through relative evaluation.

Which KPI best shows tier architecture improved economics, not just upgrades?

Email open rate

Homepage dwell time

Total SKUs displayed

Contribution margin per subscriber by tier

Margin by tier captures unit economics; vanity metrics do not confirm profitability.

Publishing clear upgrade paths with thresholds helps because ______.

it guarantees yearly prepay

it eliminates all churn

customers see value ladders and self‑select fairly

it hides restrictions

Transparency supports self‑selection and perceived fairness while enabling price discrimination.

Which framing reduces backlash when moving features from ‘good’ to ‘better’?

Grandfather existing users; change applies to new plans with added benefits

Remove features overnight with no notice

Hide downgrade penalties

Charge old users more than new users secretly

Grandfathering preserves trust and avoids sudden loss framing for current customers.

For usage‑based add‑ons, the best practice is to publish ______.

price caps and overage rules in advance

dynamic rules that change daily without notice

bundle everything into one opaque fee

only list price without caps

Clear guardrails keep willingness‑to‑pay segmentation while maintaining fairness.

A premium ‘best’ tier should justify price via ______ value.

distinct and perceivable

randomized

hidden

purely cosmetic

Customers pay more when benefits are obvious and materially better, not merely cosmetic.

In 3‑tier tests, removing the cheapest plan often ______ middle selection.

eliminates

increases

guarantees no change

always decreases

Without the lowest anchor, the middle becomes the entry, nudging selection upward.

Which practice most supports accessibility while preserving G‑B‑B economics?

Secret discounts to random users

Offer discounts via transparent, eligibility‑based fences (e.g., student, nonprofit)

Mandatory annual contracts for all

Hidden drip fees

Eligibility‑based discounts maintain fairness and segment by willingness to pay.

Starter

You understand the G‑B‑B basics—now formalize value ladders and margin checks per tier.

Solid

Strong grasp—tighten guardrails on caps, grandfathering, and salient ‘better’ benefits.

Expert!

You’re engineering tiers that nudge to value while protecting contribution profit and fairness.

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