Question

psychlogical pricing is a technique often used by retaling businesses on the beleif that the customers perceptions of a product are strongly influenced by price.enumerate the 6 types of psychological pricing techniques ?

Answer 1

Ans- Retailers are specialized in marketing, sales, inventory and the most important factor is they have done enough research on customer's buying behaviour or their psychology. Following are the type of psychological pricing techniques:-

1. Charming Pricing Technique:- This is a technical approach to the customer not to show the full amount of the product for example, at the end its "9" or "99". the left digit is lesser from around number by one cent. For example, your brain will measure $5.00 and $4.99 as different values brain will value $4.99 is cheaper than $5.00. Research shows the left side digit effect the price getting acknowledge by the brain. Customers pay their attention if it shows the full price of the product but on the other hand, it is showing "9" ending price. Especially in women clothing, it is found that the effect of left side digit price and the end its "9"  attract more ladies than the other pricing.

There is one more suggestion has been given by Keith Coulter, associate professor of marketing is if the cent should be printed in a smaller font and rest in a big font that also effects on customer's brain.

2. Buy One Get One Free (BOGOF):- In this technique, the customer pays the full money of a product but will get 1 another product free. Generally, the psychology of the customer is the avarice nature which makes them purchase more. "Free" word itself has a great impact on the customer's mind. The psychology of "Free" shopping or getting any free thing it mostly works. It is a major marketing tool.

Nowadays there are other types of offers are also used to attract customers:

* Get 25%of Bonus value on the purchase of 2 products.

* Buy 3 get Get 50% off

* Best price starts with $99

3. Prestige pricing strategy:- Prestige pricing involve the status of the customer. For example, if a customer is purchasing Paul Newman's Rolex Daytona that is $17.8 million. They feel right to purchase in round numbers because at this time it's about his feelings. The brand of the product makes his prestige high and to be admired by others.

4. Visually highlight the different prices:- In this, the price is written in a different way. In the first look, the customer feels that maybe they are getting a good offer. They get easily attracted and start purchasing. Changing the font size, colour or the broadly written "Current price" can also enhance the sale.

5. Comparative pricing- placing expensive next to standard:- This also affects the psychology of the customer when it is written the previous price and the current price side by side that make the customer realise that the current price is really cheaper than the previous one. This makes sales more.

6. Decoy pricing:- Many times companies keep 3 type offers. For example,

Web- $49

print -$130

web and print- $130

The cost of the web and print is more effective than the only web or print price. Here the print and web valued the most. Print cost is called decoy pricing.