Psychological Pricing and the Big-Time Boost It Offers Businesses
Business owners don’t price their products randomly, they usually refer to tried and true pricing strategies. Their products are typically valued based on competitive analysis and market research, but many forget another dimension — human psychology.
Here, we’ll get more insight into psychological pricing, the most prevalent ways it’s employed, and the advantages and disadvantages of leveraging it.
Psychological pricing is a pricing method based on the idea that different prices prompt different psychological responses.
Psychological pricing is a method — or collection of methods — structured around how customers perceive price points and value. It’s a process that considers those trends and tendencies and poses creative ways to play off them.