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Psychological Pricing

Description of Psychological Pricing. Explanation.




  

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Definition Psychological Pricing. Description.

 

Psychological Pricing is a market-based approach to pricing wherein prices are set to a level that is perceived as attractive by consumers. This method is designed to encourage purchases that are based on emotional rather than rational responses. For example to a relative high level to promote the idea of value and status for consumers that believe price is an indicator of quality. Or just below a round figure (popular price points) to for example $19.99 to suggest the price is in a lower range than the consumer expected. Also special promotions can be used such as 3 for the price of 2 to attract consumers looking for a bargain.


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Recent User Comments
Hassan - Pakistan Pioneer Pricing vs. Psychological Pricing "What is the difference between psychological pricing and pioneer pricing?"    0
Gavin - England Is this Psychological Pricing? "Can you anser the following question. A shop is selling a product for £5.01. Is this psychological pricing or not?"    0
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Compare with: Marketing Mix  |  Positioning  |  Perceived Value Pricing  |  Promotional Pricing  |  Cost-plus Pricing  |  Standard Cost Pricing  |  Marginal Cost Pricing  |  Target Pricing  |  Penetration Pricing  |  Price Skimming  |  Competitive Pricing  |  Discount Pricing

 

Return to Management Hub: Communication & Skills  |  Marketing

 

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End of description Psychological Pricing. An explanation.

 

 

Copyright 2009 12manage - The Executive Fast Track. V10.4 - Last updated: 21-11-2009. All names tm by their owners.
  ●  (Australia) Pioneer Pricing "Pioneer pricing is first to market on a new product or service untested and untried. It is not connected to production or other costs."

  ●  (Indonesia) Psychological pricing "It is not psychological pricing, since it may not be perceived as attractive to consumers as 4.99, to make it psychologically more attractive than 5.01. Is it correct?"