We seem to be powerless when it comes down to the Goldilocks Effect otherwise known as the Rule of Three .
In the early '80's Joel Huber and Christopher Puto did a little experiment at Duke University involving students and beer.
• In the first experiment, they offered just two varieties: a bargain beer (at $1.80) or a slightly better premium beer (at $2.60). Two-thirds of their students went for the premium.
• In the second experiment, they added an inferior, super-discount beer at $1.60. Nobody selected this cheapo option. But the bargain beer, now the middle of three choices, saw its share rise from 33 percent to 47 percent.
• Finally, the researchers took away the super-bargain and added a super-premium option at $3.40. Suddenly, it was the premium beer that was the middle of three options, and guess what? Its popularity share rose from 66 percent to 90 percent.
These findings were so impressive that Netflix is even testing this approach to their pricing: Good, better and best.
So what does this have to do with Email Marketing? Continue Reading