Business
The Fee Appears After You've Decided
Drip pricing works through timing: when fees are added late in a checkout flow, the time, effort, and comparison already spent on choosing make the decision feel made before the full price is ever seen, so a total that…
The useful part
It won on timing.
Sources behind this episode
- foundational psychology paper, third-party hosted copyThe Psychology of Sunk Cost
- peer-reviewed lab market experimentDrip pricing and its regulation: Experimental evidence
- peer-reviewed field experimentPrice Salience and Product Choice
- peer-reviewed lab experiments, six studiesConsumer Reactions to Drip Pricing
- official regulatory economic reportEconomic Analysis of Hotel Resort Fees
- official government review of a federal ruleFederal Trade Commission: Trade Regulation Rule on Unfair or Deceptive Fees
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