Anecdote related to pricing: There is a cafe called wishbone which sells large muffins for $4.50 and small muffins for $2 despite the fact that a small muffin is exactly half the size by weight (it's the kind of franchise cafe that sells things packaged in plastic wrap with nutritional information). I found this mindblowing. But it actually makes total sense. They obviously decided that there were the type of people who always bought the large muffin who were willing to pay around $4.50 for it, and the type of people who just want a little snack to eat with their coffee who were most likely to pay around $2 for it.
This doesn't fully explain why they wouldn't make the $2 muffin smaller than half the size of the $4.50 muffin. I think in the end they are also targeting the people "would never even buy a muffin, but feel compelled to buy two in order to explain to their friend who bought the $4.50 muffin how their muffin buying decisions were suboptimal."
Anecdote related to pricing: There is a cafe called wishbone which sells large muffins for $4.50 and small muffins for $2 despite the fact that a small muffin is exactly half the size by weight (it's the kind of franchise cafe that sells things packaged in plastic wrap with nutritional information). I found this mindblowing. But it actually makes total sense. They obviously decided that there were the type of people who always bought the large muffin who were willing to pay around $4.50 for it, and the type of people who just want a little snack to eat with their coffee who were most likely to pay around $2 for it.
This doesn't fully explain why they wouldn't make the $2 muffin smaller than half the size of the $4.50 muffin. I think in the end they are also targeting the people "would never even buy a muffin, but feel compelled to buy two in order to explain to their friend who bought the $4.50 muffin how their muffin buying decisions were suboptimal."
Dammit.