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.

Psychological Pricing Forum (2) Register  |  Log in  |  Help 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?" New topic  |  Join our management network

Psychological Pricing Special Interest Group Special Interest Group

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.