Operating Principle

2–4 min read

Good, Better, Best Tiering Increases Average Deal Size

Good, Better, Best Tiering Increases Average Deal Size

Good, Better, Best Tiering Increases Average Deal Size

A credible third tier pulls buyers toward the middle option.

A credible third tier pulls buyers toward the middle option.

A credible third tier pulls buyers toward the middle option.

Extremeness aversion makes the middle feel safer and less regrettable.

Extremeness aversion makes the middle feel safer and less regrettable.

Extremeness aversion makes the middle feel safer and less regrettable.

Extremeness aversion makes the middle feel safer and less regrettable.

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Operating Question

What reference price, alternative, or comparison context is shaping this decision?

What reference price, alternative, or comparison context is shaping this decision?

What reference price, alternative, or comparison context is shaping this decision?

Why It Matters

Extremeness aversion makes the middle feel safer and less regrettable.

Supporting Evidence

Itamar Simonson and Amos Tversky, “Choice in Context”.

Research Notes

Test pricing changes in the actual category and customer context before generalizing the mechanism.

Practical Actions

Review two-tier pricing; position target as middle; test a credible top tier.

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