# Charm Pricing vs Round Number Pricing A/B Test

Page: https://alidemirbas.com.tr/en/lab/ab-test-library/tests/charm-pricing-vs-round-number-pricing-ab-test

## Hypothesis

If the price sits just below a round number, the product may feel like it belongs in a lower price bracket and be easier to buy, while the whole-number price collects slightly more on every order. Which one comes out ahead depends on how those two effects balance, and that could move gross revenue per visitor in either direction.

## When to run this test

This test is worth running when prices in one category appear in mixed formats, session recordings show visitors leaving the product page right after seeing the price, or support tickets show price complaints piling up. The charm price wins only if it lifts product detail clicks and purchases enough to cover the small amount it gives up per order. The whole-number price wins by holding conversion steady while bringing in slightly more per order. If you cannot hold promotions constant during the test window, wait; keep the price gap small and defined in advance, because even a small gap changes what shoppers pay.

## Primary metric

**Gross revenue per visitor**: Compare total gross revenue per assigned visitor to check whether rounding changes revenue.

## Other metrics

- **Purchase conversion rate (CR)**: Track purchase rate at each price point.
- **Product detail click-through rate**: Compare clicks from the listing to product pages.
- **Gross margin**: Account for the actual price difference and the mix of products purchased.
- **Price-related complaints**: Track price-related support contacts or complaints in both arms.

## What to check before and during the test

- **Price set**: Define the rounded and whole-number price for every eligible product before launch.
- **Category**: Review results within product categories defined in advance.
- **Surfaces**: Keep each visitor's assigned price consistent on listings, product pages and checkout.
- **Typography**: Keep font size, decimal styling and badges unchanged.
- **Promotions**: Keep discounts and promotion terms fixed during the test.

## What to watch when reading the result

- An option that leads on conversion rate is not the winner unless gross revenue per visitor rises too; make the call on that metric. Also confirm that gross margin holds and price-related complaints do not rise.
- Read the effect category by category, within the price sets and predefined categories you tested. If you ship a format, apply it across the whole category rather than leaving both formats side by side.
- Revenue per visitor is noisier than a purchase rate, so a small difference can easily get lost in the noise. Before launch, try a few lift values with the current purchase rate in the [sample size calculator](https://alidemirbas.com.tr/en/calculators/sample-size-calculator), and compare the sample per variant each one needs with your traffic. A revenue metric needs an even larger sample, so if the result stays unclear, do not report it as a gain or a loss.

## Frequently Asked Questions

### Does this test isolate price formatting?

No. The alternatives change both the actual price and its presentation. Interpret the result as the combined change. Define the small price difference in advance, since even a small difference changes the amount charged.

### Is conversion rate enough to choose a winner?

No. Use gross revenue per visitor as the primary outcome and monitor gross margin. Account for the actual price difference and changes in the products purchased.

### Should the assigned price stay consistent across pages?

Yes. Preserve it across listing, product and checkout pages. Define both prices for each eligible product before launch and avoid inconsistent category-wide formatting.