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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
R
E
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
Psychological pricing
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”
Psychological pricing
- 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
Psychological pricing

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Psychological pricing