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PSYCHOLOGICAL PRICING

 Lina

Maria L贸pez  Angie Carolina Macias  Jenny Rocio Velasco


DEFINITION  Psychological

pricing is a business concept supported by the idea that customers respond better to certain types of prices and will more likely to buy items with these prices.


STRATEGY Most often, such prices have end digits of nine, 99 or 95, which it is believed make people more assured they are getting a savings on what they buy.  For some companies, pricing something at $19.99 instead of at $20 US Dollars (USD) will result in consumers believing they’re getting a savings, and even if that savings is only one penny, customers may feel more confident about making a purchase. 


HOW TO USE IT  The

best approach to using this strategy would be to test it; have one product priced at an uneven price and another, similar product at a rounded-to-the-nearest-10 price.  Psychological pricing might be the best fit for your small business but make sure you test that decision before you make it.


EXAMPLE  In

the real estate market, properties are often priced at uneven dollars $239,000 instead of $240,000. The psychology of that pricing is that buyers will recognize the $239,000 price as being much better (even though it's only $1000 less) than $240,000.


ADVICE  When

developing your small business sales plan, you need to consider pricing as an element of your marketing mix. It can help you gain or lose sales and/or profit.


PRICING