Psychological Pricing

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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.


Psychological Pricing Forum
  The Importance of Price Stereotypes for the Price Image in Consumer Products
Research by Hamilton and Chernev (2013) revealed that consumers persist to believe certain general stereotypes when it comes to pricing (whether true or not). Retailers need to understand and manage 3 signals in order to avoid sending incorrect prici...
     
 
  Pioneer Pricing vs. Psychological Pricing
What is the difference between psychological pricing and pioneer pricing?...
     
 
  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?...
     
 

Psychological Pricing Special Interest Group


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Best Practices - Psychological Pricing Premium

Expert Tips - Psychological Pricing Premium

Resources - Psychological Pricing Premium

Overview of Pricing and Pricing Strategies

This presentation contains an overview of various pricing strategies, including for example pricing based on competition; psychological pricing; cost-...
Usage (application): Pricing
 
 

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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

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