Last year, McDonald's rolled out an initiative that showed their...
Maxwell Finn@maxwellfinn
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Jan 30, 2025
~1 min read
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Last year, McDonald's rolled out an initiative that showed their mastery of pricing psychology...
They digitized their menus and ran a massive pricing psychology experiment.
The results were crazy and completely changed how they display prices on their menus around the world 🧵
They digitized their menus and ran a massive pricing psychology experiment.
The results were crazy and completely changed how they display prices on their menus around the world 🧵
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First, let's nerd out a bit on the research.
Studies in Neural Computing proved that seeing currency symbols (ex. $) in front of numbers activates the same areas in your brain as physical pain!
This is why luxury restaurants don't use them and show a "14" instead of "$14".
Studies in Neural Computing proved that seeing currency symbols (ex. $) in front of numbers activates the same areas in your brain as physical pain!
This is why luxury restaurants don't use them and show a "14" instead of "$14".
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McDonald's tested removing $ symbols across thousands of digital menu boards.
Why?
Because studies in show numerical prices without currency symbols reduce "pain of paying" activation in the brain by up to 95%.
Why?
Because studies in show numerical prices without currency symbols reduce "pain of paying" activation in the brain by up to 95%.
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But McDonald's took this science to another level with their own pricing test.
They didn't just remove dollar signs from their digital menus...
They changed the customer's psychological journey by:
➡️ Moving prices below item descriptions
➡️ Making item photos 40% larger
➡️ Highlighting customer favorites
➡️ Displaying top-rated items first
They didn't just remove dollar signs from their digital menus...
They changed the customer's psychological journey by:
➡️ Moving prices below item descriptions
➡️ Making item photos 40% larger
➡️ Highlighting customer favorites
➡️ Displaying top-rated items first
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The psychology at work here is powerful:
When you see: "Big Mac $4.99"
Your brain processes the cost first.
But when you see: "Big Mac" "4.99"
Your brain focuses on desire before cost.
When you see: "Big Mac $4.99"
Your brain processes the cost first.
But when you see: "Big Mac" "4.99"
Your brain focuses on desire before cost.
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This small change created a massive shift in purchase behavior for McDonalds, which lead to an impressive growth in annual sales.
Specifically, it increased sales worldwide by 9.5% in 2023!
Specifically, it increased sales worldwide by 9.5% in 2023!
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What pricing psychology are you using in your business or have you seen another business use that's impressed you?
👇 Let me know in the comments.
P.S. If you liked this thread and want more marketing tips, news and stories be sure to follow @maxwellfinn and hit that 🔔.
👇 Let me know in the comments.
P.S. If you liked this thread and want more marketing tips, news and stories be sure to follow @maxwellfinn and hit that 🔔.
