If you call them Options A, B & C then the ‘relative value’ thought process will take place as described above. If, however, you give them names with an intrinsic implied status — the classic example being Bronze, Silver & Gold — then the purchaser is more likely to choose the higher level option. Why? Because people (especially executives) tend not to like to think of themselves as ‘Bronze’ people. We like to think of ourselves as gold-standard.

Marketeers have been doing this for decades. It works. I’m not saying that every prospect will go for the gold option, but if it gets even 1 in 20 to jump a tier then it’s a win. Since it’s just about the naming convention there’s little or no downside, after all.