The Importance Of
Psychological pricing is a marketing tool that attempts to give customers an added sense of value when purchasing their products. It is used as an attempt to convince you that you’re saving money on a product to make you feel like you’re investing in a high-quality item.
What Is Psychological Pricing
Psychological pricing, however, only works when you don’t realize the actual cost behind the item you’re buying. For example, if you knew that an 8-pack of batteries cost around 20 to 30 cents to produce, you would probably hesitate to buy a similar 8-pack of batteries for $6 dollars.
How Does Psychological Pricing Work?
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The most common method you see used at stores is called the left-digit effect. As humans, we typically read things from left to right no matter what we’re reading. For example, what price looks more appealing to you? $3.99 or $4.00? Most people would choose $3.99.
Methods Of Psychological Pricing
While there are more techniques inside of the psychological pricing umbrella, this field of pricing is still a relatively new subject being explored today. With that being said, it’s being implemented more and companies are benefiting from its effectiveness.
The Future Of Psychological Pricing
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