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# An Overview of The Goldilocks Effect cognitive bias for conversion rate

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The Goldilocks effect is a cognitive bias, which describes the way people evaluate options presented to them. It states that when presented with three options, people are more likely to select the one in the middle as it is seen as being “just right”.

The Goldilocks effect can be used to improve conversion rates for ecommerce stores, designers and marketers by helping them present their products or services in the best possible light. In this article we will discuss how to use this concept to your advantage and increase your conversion rate.

## What is the Goldilocks Effect?

The Goldilocks Effect is a cognitive bias that occurs when people are presented with three options of varying value. People tend to choose the option that falls in between the cheaper and more expensive versions, perceiving it as being perfect for them—that it’s “just right".

This concept has been studied extensively over time, with different theories proposed about why it exists such as status quo bias or loss aversion.

## How does it apply to conversions?

The Goldilocks Effect applies directly to conversions because it presents shoppers with an easy way of evaluating their purchasing decisions.

By presenting customers with three choices—a low-value option, a high-value option, and a perfect middle-ground option—you can give shoppers an easy choice while still providing variety and room for customization depending on their budget or preferences.

For example, you might offer a basic package at $10/month, an advanced package at$20/month, and a premium package at \$15/month; this would allow customers to choose whichever package suits their needs without feeling overwhelmed by too many choices (which can decrease conversions).

## How do I use the Goldilocks Effect?

The key to using the Goldilocks Effect effectively is understanding what type of customer you are targeting and what they want from your product or service.

Consider what features they may want and then create three packages based around those features: a low-cost option for those who just want basic features; an advanced version for those looking for something more robust; and a premium version that offers all of your best features at a higher price point.

Make sure each package provides enough value so customers feel like they’re getting something worthwhile without feeling overwhelmed by too many choices or underwhelmed by not having enough options available.

You should also consider pricing carefully when using the Goldilocks Effect; setting prices too close together may lead shoppers to feel like none of your packages provide enough value for their money; likewise if your prices are too far apart then shoppers may not see any difference between them!

When pricing packages make sure there’s enough discrepancy between each one so customers understand why they should purchase one version over another but don’t make them so different that customers feel like they could get much better value elsewhere.

## Conclusion on Goldilocks effect bias

In conclusion, using the Goldilocks Effect can help ecommerce store owners, designers and marketers increase their conversion rates by providing customers with three clearly defined packages tailored towards different types of customer needs–low cost, advanced and premium–without overwhelming them with too many choices or underwhelming them with not enough choice.

This method allows customers to easily evaluate their purchasing decision while giving businesses more control over how their product or service is priced. Always remember though – when pricing out packages make sure there’s enough difference between each one so customers understand why they should purchase one version over another but don’t make them so different that customers feel like they could get much better value elsewhere!