306 people visited one of three coffee shops and were asked to buy a coffee at either: €0.99, €1, €1.01 or an orange juice that was €0.15 cheaper than the respective coffee price.

Results showed that, contrary to conventional research on pricing (shown by the dashed line), the round-priced coffee saw the highest % of sales.

Use round prices to reduce fatigue.

‍There’s a growing trend for cognitive convenience in the face of Time Scarcity and Analysis Paralysis. 

A banana costing £1 is easier and faster to process mentally than one costing £0.95. UK retailer Tesco now adopts this specifically for promotions.  

If your brand places a value on saving time and energy, consider doing the same.

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Use for premium, green or pleasurable products.

‍Marks & Spencer (UK), Saks (US) and Levi’s now adopt round pricing, showing the zeros. Doing so signals brand quality, warmth and trust.

 Use to nudge secondary behaviors.

‍For transactions, add a Foot In The Door to give the rounded difference to charity (supermarket), savings (banks) or tips (fast food), for example.

850,000 teachers' retirement plans were assessed. Each teacher's main decision was to divide their pension between two funds: one low risk (bonds) and one high risk (stocks). They could switch between the two at no cost.

Results found that despite the massive differences in rates of return between the two funds, only 20% ever switched from their initial fund allocation.

What's the status quo in your situation?

‍Build a strategy around identifying and removing the practical and emotional switching costs that are preventing change.

Make it exciting!

‍It isn't enough to just remove the barriers. Offer a Contrasting view of the net gain of the change, painting a clear, positive picture with a personalized Goal Prime showing them how their life will be better.

Make it effortless.

‍Use Foot In The Door with a Tiny Habit to help users take the first positive step.

Identify and work with a group of 'change-makers'; those with some Authority who are most ready to adopt and embrace change.

Share their positive Stories with others more averse.

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Check your Defaults.

You’re setting them everywhere, sometimes without thinking. These strongly influence the status quo. What new behavioral goal are you looking to foster in your users? Update your defaults to suit.

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