Psychological Pricing: What Your Prices Really Say to Customers - Deepstash

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Psychological Pricing: What Your Prices Really Say to Customers

shopify.com

What Your Prices Say to Customers

Pricing can be used as a marketing strategy or as a way to increase perceptions of quality. Sometimes it’s baked directly into a brand’s ethos.

It’s so much more than a simple calculation—pricing, especially the practice of psychological pricing, can have a real im...

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It's a strategy that uses pricing to influence a customer’s spending or shopping habits to make more or higher value sales.

The goal is to meet a customer’s psychological need for something, whether that’s saving money, investing in the highest quality item...

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Psychological pricing plays on the fact that consumers rarely know what something should cost. Most often the way we’re able to determine if something is a good deal is by getting it for a lower price than normally listed or by comparing it to similar products in the same categor...

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  • Charm pricing and odd-even pricing: It removes one cent from the rounded dollar price of an item to trick the brain into thinking it costs less.
  • Slashing the MSRP: Some businesses sell right at the manufacturer’s suggested retail price, but others ...

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Higher prices give the impression that an item is worth more, even if it’s made by the same manufacturer or the same materials.

This is a popular strategy that businesses use to signal that their items are luxury or designer pieces. Customers see an ex...

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