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.
Recent User Comments
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Hassan - Pakistan
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Pioneer Pricing vs. Psychological Pricing |
"What is the difference between psychological pricing and pioneer pricing?" |
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Gavin - England
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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?" |
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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
|
