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Psychological Pricing |
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Description of Psychological Pricing. Explanation. |
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.
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 |
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End of description Psychological Pricing. An explanation. |
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