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Is this Psychological Pricing?

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Psychological Pricing
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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?
 

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Adimas, 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?

 
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Hemant Desai
Management Consultant, India
 

Psychological Pricing

It could be; depending on whether other products are priced lower and this pricing is aiming to show it is in the next bracket (4 to 5).

 
1
Santosh Chitale
Business Consultant, India
 

Psychological Pricing

Any figure can be made out as Psychological Pricing (PP). To make the buyer feel comfortable in procuring the product at a price point that he/she feels is below the number they have in mind. Though the figure 5.01 can actually be used as a trigger to denote that at 4.99, you may not have the same product features as at 5.01. However a buyer will allow his/her mind to get captivated by the lower number, in this instance 5.01 might not trigger the emotional response the seller wants.

 
2
Annalisa Cordoba
Manager, Spain
 

Example of Psychological Pricing

I agree that normally in PP a price of 4.90 would be more obvious, because is is "psychologically" u... Sign up

 

More on Psychological Pricing:
Summary
Discussion Topics
🔥 The Decoy Effect: Pricing Using Alternatives
topic The Importance of Price Stereotypes for the Price Image in Consumer Products
topic Pioneer Pricing vs. Psychological Pricing
👀Is this Psychological Pricing?
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More on Psychological Pricing:
Summary
Discussion Topics
🔥 The Decoy Effect: Pricing Using Alternatives
topic The Importance of Price Stereotypes for the Price Image in Consumer Products
topic Pioneer Pricing vs. Psychological Pricing
👀Is this Psychological Pricing?
Special Interest Group

SIG Leader

Do you know a lot about Psychological Pricing? Become our SIG Leader

Knowledge Center

Psychological Pricing
Knowledge Center



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