What is Psychological Pricing?
Understand the Problem
The question is asking for a definition or explanation of the term 'Psychological Pricing', and provides multiple-choice answers to choose from.
Answer
Psychological pricing uses cognitive biases to influence perceptions of prices.
Psychological pricing is a strategy that uses human cognitive biases to influence consumer perceptions by setting prices to trigger responses like perceiving a deal or enhanced value.
Answer for screen readers
Psychological pricing is a strategy that uses human cognitive biases to influence consumer perceptions by setting prices to trigger responses like perceiving a deal or enhanced value.
More Information
Psychological pricing is widely used in marketing to make prices seem more appealing. This includes strategies like setting prices slightly below a round number, such as $19.99 instead of $20, to make the price seem lower.
Tips
A common mistake is equating psychological pricing solely with ending prices in .99 or .95. It's crucial to understand the broader psychological strategies involved.
Sources
- What is Psychological Pricing? - NetSuite - netsuite.com
- Psychological pricing - Wikipedia - en.wikipedia.org
- What is Psychological Pricing? - DealHub - dealhub.io
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