Document Type: Framework
Status: Active
Authority: Conversion Brain
Applies To: Affiliate Brain, Product Brain, AIBS Brain
Parent: Conversion Brain Canon
Version: v1.0
Last Reviewed: 2026-04-18
Purpose
The Conversion Brain Pricing Experimentation Framework defines how MWMS evaluates pricing structure as a behavioural optimisation variable.
Pricing influences:
perceived value
purchase behaviour
conversion probability
customer lifetime value
market positioning
Pricing decisions influence both short-term revenue and long-term retention.
Pricing must therefore be treated as a testable growth variable.
Scope
This framework applies to:
offer pricing structures
subscription pricing models
upsell pricing logic
bundle pricing logic
discount structures
trial structures
payment frequency structures
This framework governs:
pricing hypothesis design
pricing test scope identification
pricing experiment considerations
This framework does not govern:
financial accounting rules
profit margin policy
tax structure logic
These remain governed by Finance Brain.
Definition
Pricing experimentation evaluates how pricing structure influences behaviour.
Pricing variables influence:
perceived risk
perceived value
purchase timing
commitment willingness
customer lifetime value
Pricing changes can influence system-level performance significantly.
Pricing Variables
Pricing experimentation may evaluate:
price level
pricing tier structure
subscription duration options
trial structure
payment frequency
bundle structure
discount structures
upsell structure
downsells
loyalty incentives
free shipping thresholds
volume discounts
Pricing variables influence decision environment perception.
Pricing Structure Considerations
Pricing influences psychological perception.
Examples:
high price may signal premium quality
low price may signal lower quality
discounts may increase urgency
bundles may increase perceived value
subscriptions may increase retention predictability
Pricing must be evaluated beyond simple revenue impact.
Pricing Experiment Challenges
Pricing tests may create:
short-term revenue changes
long-term behavioural changes
perception shifts
retention changes
customer trust implications
Short-term conversion improvement may reduce long-term value.
Pricing experiments must consider long-term impact.
Pricing Research Methods
Qualitative and structured research may support pricing evaluation.
Examples include:
Van Westendorp price sensitivity model
Conjoint analysis
Gabor-Granger price elasticity method
Research may improve hypothesis quality prior to testing.
Pricing Experiment Duration
Pricing impact may require longer evaluation periods.
Consider:
customer lifetime value impact
repeat purchase behaviour
subscription retention behaviour
Short evaluation windows may produce misleading conclusions.
Relationship to Growth Model
Pricing influences:
conversion rate
average order value
lifetime value
retention probability
Pricing may operate as Growth Lever when significant constraint exists.
Governance Rule
Pricing changes should be tested cautiously and evaluated holistically.
Short-term performance improvement alone is insufficient justification for permanent pricing change.
Version Control
v1.0
Initial definition of pricing experimentation structure within MWMS Conversion Brain.