The Simple Pricing Shift That Drives More Sales

A hand reaches for red-orange boxes priced at $4 each on a shelf. Nearby, blue-green boxes are priced at 5 for $20. The image suggests a choice or decision.
May 12 , 2026  |  By Daniel Villanova

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Who is this research for? This research is relevant for retail pricing strategists, consumer packaged goods (CPG) executives, and retail marketers looking to improve pricing presentation and promotion performance.

Executive Summary

This research from Daniel Villanova at the Sam M. Walton College of Business (Department of Marketing) examines how price displays can shape how consumers evaluate deals. Across multiple experiments, the study compares two formats: showing the cost per unit (e.g., $8 per pound) versus showing how much product you get per dollar (e.g., 2 pounds per $1), as well as cases where consumers calculate these values themselves.

The findings suggest that when prices are framed as cost per unit, consumers focus more directly on price, making them more responsive to promotions and more likely to choose the best-value option. This effect holds even when shoppers do the math on their own. Small design choices—such as how a price is framed, which number appears larger, and how prominently unit pricing is displayed—can meaningfully shift how customers perceive value and respond at the shelf or online.

Action Items for Industry

  • Consider using price-per-unit labels: Formats like “$X per ounce” may help customers more easily evaluate and compare options.
  • Explore offer structures that highlight price: Presenting offers so the price is larger (e.g., “$8 for 2 pounds” instead of “$8 for 32 ounces”) may encourage more price-focused comparisons.
  • Review visibility of unit pricing across SKUs: Increasing the prominence of unit price information—such as through font size—increases its influence on decision-making.

Quote from the Researcher

“Retailers have options in how they present prices to shoppers. Managers need to understand how consumer psychology impacts the effectiveness of those pricing choices. The findings from this research exemplify the actionable insights that can arise from academic inquiry.”

– Daniel Villanova

Co-Authors & Affiliations

Rajesh Bagchi —Virginia Tech, Pamplin College of Business

Published in Journal of Marketing, available to download here.

📩 Interested in learning more? If you’d like additional information about this research or to connect directly with the researchers, please email us at research@walton.uark.edu.

Daniel VillanovaDaniel Villanova is an Assistant Professor of Marketing in the Sam M. Walton College of Business at the University of Arkansas. He received his Ph.D. in Marketing from Virginia Tech and B.S.B.A. in Marketing and Management from Appalachian State University. His research focuses primarily on consumer responses to numerical information with applications to financial decision-making and framing product attribute information. He also studies how individuals' identities shape their behavior.