Consumer Insights Evon Tan Consumer Insights Evon Tan

💰Why do people pay what they pay?

What drives pricing decisions—cost or confidence? This research uncovers why predictability in pricing consistently outperforms discounts across energy, telecom, and SaaS industries.

Pricing Sensitivity & Value Perception

🛠 Methods Used: Conjoint Analysis | Price Sensitivity Testing | Competitive Benchmarking

Across energy, telecom, and SaaS industries, customers consistently preferred predictability over low prices. When pricing is complex, they hesitate. When it’s clear, they commit — not just emotionally, but behaviourally, leading to higher trust, stronger conversion rates, and long-term retention.

Pricing is rarely about the number on the tag - it’s about how that number feels. Place two identical products side by side: one priced at $49, the other at $59. Guess which one sells more?

Hint: It’s not always the cheapest one.

More than 70% of customers prefer clear pricing over low prices across industries.

  • Percentage of users (%)
  • Percentage of users (%)
Data visual based on general pricing sensitivity trends referenced from behavioural economics and market research studies from McKinsey Pricing Studies and EY Global Consumer Insights Survey.
Customers don’t just buy a product—they buy trust, confidence, and certainty that makes them feel they’ve made the right decision.
— Evon, Research & Insights Leader (2025)

Higher prices can signal quality, exclusivity, or trust—shaping customer perception beyond rational cost comparison.

Pricing is rarely just about cost—it’s about how confident the customer feels in their decision. The best pricing models don’t just lower prices; they remove doubt.

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