Why do subscriptions have three tiers?
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The Trick: Why do so many apps show three plans?
Many people pick the middle one. The compromise effect: we tend to avoid the cheapest and priciest options and settle in the middle, so the middle plan is often the one the company wants to sell. Source: Simonson – Choice Based on Reasons: Attraction and Compromise Effects (JCR, 1989)
Why It Works: Why is the top tier often wildly expensive?
It makes the middle tier look reasonable. The top tier anchors, and the middle one feels like a sensible bargain. Source: Wikipedia – Anchoring effect
How to Spot It: How do you choose without the nudge?
List what you actually need, then find the cheapest plan with it. The "Most popular" badge is a choice made for you; start from needs, not from the layout. Source: Simonson – Choice Based on Reasons: Attraction and Compromise Effects (JCR, 1989)