Psychological Pricing Research Paper

Psychological Pricing Research Paper-38
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Psychological pricing is designed to appeal to a customer’s emotional side and not his rational side.

Psychological pricing endeavours to keep products within stipulated “mental barriers” of the conventional customer, with marginal reduction in prices.

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Did you ever ask why a hotel room costs $199.99 a night and not $200?

Did you ever feel that most of the price tags around you are somewhat odd?

These odd prices actually give the illusion that you are paying drastically less than you actually are.

So, to the conventional human mind, 9.99 seems closer to 0 than to 0, just because it starts with “1”.

Psychological pricing is a pricing tactic that takes advantage of a customer’s emotional response to certain price points in order to enhance sales prospects.

Psychological pricing uses unusual pricing conventions to make products or services look significantly cheaper than they actually are.


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