What is psychological pricing in marketing?

[bitheerani319]

Psychological pricing is a fundamental part of marketing. This type of pricing appeals directly to the consumer's emotions.

Have you ever seen a product with an odd rcs data greece like $9.97 and wondered why they didn't just put $10 on it? If that's the case, read on to the end. Today we're going to talk about psychological pricing in marketing.


Before reading this article, I strongly recommend reading the article on psychology applied to marketing , to understand a little more about psychology and marketing.

In this article we will see:

What is a psychological price?
Scientific support for psychological pricing
Other types of psychological pricing
Price on scale
Joint product
Factors affecting psychological prices
Conclusion
What is a psychological price?
Psychological prices

This type of pricing corresponds to a value that can influence the decision to purchase a product.

Psychological pricing isn't just about putting $9.99 and that's it. There are several types of psychological pricing and each has its merits.


The types of influence that prices exert on consumers can be emotional or rational. Depending on whether the purchase decision is emotional or rational, one price works better than another.

Now we are going to look at an experiment that works as a support for psychological prices in terms of rounding (a price of $10 vs another of $9.97).

Scientific support for psychological pricing
To check if prices like $9.97 really had an influence on consumers Monica Wadhwa and Kuangjie Zhang (published by Oxford University) did an experiment that you can read here in English .

The article explains that rounded prices (such as $10) work better in emotional contexts , while unrounded prices ($8.86) work better in rational contexts.

What does this mean?

For example, if a family wants to buy a camera for their vacation, the rounded price ($10) can work much better than an unrounded price.