Psychology of Bundle Pricing: Why Customers Love 'Bundle & Save'

Ever notice how a "Buy 3, Get 20% Off" deal somehow makes you toss extra items in your cart even when you only came for one thing? That's the fascinating psychology of bundle pricing at work. For Shopify merchants looking to increase sales and average order values, understanding the psychological triggers behind bundle offers plays a huge role.

The psychology of bundle pricing in eCommerce

According to the Harvard Business Review, pricing is a psychological tool that shapes how shoppers perceive your products. The psychology of pricing includes everything from how the numbers look on the page to the context surrounding them. 

Bundle pricing combines multiple products into a single, tempting package at a price that beats buying everything separately. It works because it simplifies shopping decisions while making customers feel like savvy deal-hunters.

For Shopify stores, MBC Bundle Builder tool makes it dead simple to create enticing offers such as:

• BOGO deals (who doesn't love getting something "free"?)

• Mix and match offers where shoppers create their own perfect combinations

• Volume discounts that reward bigger purchases

• Custom bundles for that "made just for me" shopping experience

#1 Bundle pricing is psychological

Bundle pricing taps into core psychological principles that influence how we make buying decisions. It exploits the mental shortcuts our brains love to use. Research shows bundle pricing actually reduces the psychological "pain of paying" by turning multiple purchase decisions into one seamless action. 

Several mind-bending effects psychologically influence how shoppers respond to your pricing:

• Odd-even pricing: $19.99 feels much cheaper than $20.00 to our brains

• Price anchoring: A high reference point makes actual price seem reasonable by comparison

• Center stage effect: Mid-tier bundle in the spotlight makes it mysteriously more appealing

• Loss aversion: Missing out on savings is more influential than getting a deal

• Charm pricing: Just-below prices ($9.97, $199) create an outsized impact on purchase likelihood

#2 Pricing bundles psychologically affect consumer perception

The anchoring effect relies on how first impressions stick. When shoppers see that original $120 price crossed out next to the $89 bundle deal, their brains light up at the perceived bargain. The Decision Lab’s Decoy Effect found that introducing a third, inferior option can dramatically shift preferences. That leads us to the statement - “Context matters enormously in consumer perception”.

Psychological Pricing Models

1. The Decoy Effect

The Decoy Effect occurs when adding a third, less attractive option makes one of the other two choices more appealing.

For example, if you offer two pricing plans, Basic at $10 and Premium at $30, adding a third option (Standard at $28 with fewer features than Premium) can make the $30 Premium plan look like a better deal. This technique nudges customers toward the higher-value option without changing your actual offerings.

2. Partitioned Pricing

Partitioned pricing splits the total cost into smaller components, such as product price plus shipping or fees.

Even when the final cost is the same, breaking it into parts makes the base price look more affordable and can reduce price resistance. It can also increase transparency when fees are seen as separate and justified (e.g., handling, tax, or service fees).

3. Charm Pricing

Charm pricing uses prices that end in .99, .95, or similar, to make items appear less expensive than they really are.

This technique uses the way people read numbers: seeing $4.99 feels closer to $4 than $5, even though the difference is just one cent. It subtly increases conversions, especially for lower-priced goods or impulse purchases.

4. Price Anchoring

Price anchoring involves showing a higher-priced item first to set a mental reference point for value.

When customers see a $500 product followed by a $200 product, the latter feels like a bargain—even if it's not discounted. This strategy is widely used in product pages, pricing tables, and sales pitches to make mid-tier options more appealing.

5. BOGO (Buy One, Get One)

BOGO pricing offers an extra item for free or at a discount when one is purchased at full price.

This model appeals to our sense of value and urgency: customers feel like they're getting more for their money. It also helps increase volume sold, clear out inventory, or encourage trial of additional products.

6. Bundling

Bundling combines two or more products into a single package sold at a single price.

This makes the perceived value of the offer higher, even if the discount is small or nonexistent. Bundles work particularly well for complementary products and can increase average order value while simplifying buying decisions.

7. Price Framing

Price framing is the way a price is presented to influence perception.

Saying “Only $1 per day” sounds more affordable than “$365 per year,” even though the total is the same. It helps customers justify the purchase by focusing on a smaller, more relatable number.

8. Urgency and Scarcity

This model uses limited-time offers or low-stock warnings to create a fear of missing out (FOMO).

Phrases like “Only 3 left” or “Ends in 2 hours” trigger a sense of urgency that can drive faster decision-making. These tactics are highly effective in e-commerce and flash sales.

9. Pay-What-You-Want (PWYW)

PWYW pricing allows customers to choose how much they pay, often with a suggested minimum.

While it may seem risky, it can lead to higher-than-expected payments, especially when paired with strong brand loyalty or charitable causes. It builds trust and engages customers by giving them control.

10. Comparative Pricing

Comparative pricing presents two or more similar products side by side to help customers make a decision.

By showing a basic, mid-tier, and premium option, you guide users toward the one with the best value. Most often, people pick the middle option to avoid both extremes—a behavior known as the “compromise effect.”

The Power of Magic Numbers in Bundle Pricing Strategy

9, 7, and 5 are the most common magic numbers in pricing. Certain numbers trigger subconscious trust and attraction. 

The magic number of 9 

This pricing strategy is known as "odd pricing" or "charm pricing".

Prices ending in 9 increase sales by up to 30% compared to rounded numbers. 

The magic number of 7

7 at the end of prices create a perception of premium value, particularly effective for higher-end product combinations. 

The magic number of 5

The number 5 suggests balance and fairness in pricing, making it ideal for bundles that combine complementary products of similar value.

Why Customers Love Bundle & Save?

One simple word "save" in "Bundle & Save" messaging is more powerful than you might think. 

When used effectively, "Bundle & Save" builds trust by reinforcing the idea that the brand prioritizes customer benefit. 

Here are the reasons why customers love bundles:

1. Perceived value

Customers feel they’re getting more for their money when products are grouped together at a lower combined price. Even if the actual discount is small, the overall value seems higher, making the purchase more attractive.

2. Simpler decision-making

Bundles reduce the mental effort of comparing products individually. Instead of choosing each item separately, customers get a ready-made package that feels well-curated and convenient.

3. Instant savings

Everyone loves a good deal. Seeing a clear, upfront discount on a bundle (e.g., “Save 15% when you buy all 3”) gives customers a reason to act quickly and spend more at once.

4. Encourages discovery

Bundles often include items customers may not have picked on their own. This creates a sense of discovery and can introduce them to products they might purchase again in the future.

5. Increased trust

When a brand suggests a bundle, it shows thoughtfulness in creating a complete solution—this builds trust. Customers often believe bundles are designed to maximize usefulness or match common needs.

6. Feel-good purchase

Saving money while getting multiple items delivers a psychological reward. Customers walk away feeling like they made a smart buying decision, which increases satisfaction and loyalty.

Note: This article was created with assistance from vevy.ai and proofread, fact-checked, and validated by its author.