PSYCHOLOGICAL PRICING

BY- Aditya Pratap -15PGP146 Gowtham Naik-15PGP149

Mansingh Hembram-15PGP151 Ravindra Arya-15PGP153

Ronak Choudhary-15PGP155 Himanshi Shivhare-15PGP158

Psychological Pricing• Is based on the theory that certain

price figures have psychological impact.

• Uses the customer's emotional response to encourage sales.

Psychological pricing strategies

• Charm Pricing

Price Reframing- Keep the Shipping and Handling Separate.

-Offer Payments in Instalments.

- Mention the Daily Equivalence

Price Reframing

RE

Price Reframing

Influence customer by small magnitude.

-Position Prices Toward the Bottom-Left

- Use a Smaller Font Size

- Remove the Comma When Possible

- Use “Congruent” Language

Influence customer by small magnitude.

-Be Precise With Large Prices

Influence customer by small magnitude.

Maximize Reference Price-Expose People to a Higher “Incidental” Price.

- Expose People to Any High Number

- Raise the Price of Your Previous Product

Maximize Reference Price

Emphasize the Gap Between Reference

Prices- Visually Distinguish Higher Price Comparisons

- Offer a Decoy Product

Reduce the “Pain of Paying”

- Remove the Currency Sign

- Charge Customers Before They Consume

-Bundle Your Product

- But Don’t Bundle Expensive Products

Reduce the “Pain of Paying”

- Shift the Focus Toward Time-Related Aspects.

- Create a Payment Medium

Reduce the “Pain of Paying”

- Follow the “Rule of 100”.

-  Provide a Reason for the Discount

Use Discounts Strategically

- Avoid Discounts With Precise Numbers

Use Discounts Strategically

Flash Sales

Buy one, get one free

REFERENCES

• http://www.nickkolenda.com/• http://smallbusiness.chron.com/• https://econsultancy.com