Have you ever questioned why you like purchasing goods that cost 99 cents? Tech companies, for instance, sell millions of phones online for between Rs 8999 and Rs 11999, but they could just as easily round those costs down to Rs 9000 and Rs 12000.
Well, there's a rationale to this action. Companies employ psychological pricing techniques to draw clients and get them to part with their hard-earned cash. One such creative marketing tactic is to price the goods so that the consumer perceives it as being reasonably priced.
Because we are emotional creatures, humans base much of their decisions on their feelings. Numerous additional pricing techniques are employed in addition to psychological pricing to appeal to buyers' emotions. Every pricing strategy deceives consumers into thinking that products are more affordable than they actually are.
In addition to the emotional component, another reason for these prices is that the left-most digit in a price is processed by the human brain first, so if it is lower than the right-most digit, there is a greater likelihood that we will purchase the product rather than the one with the highest value as the first digit.
Even though it's one of the first marketing ploys, it still works wonderfully. Shopkeepers may also benefit from this approach and make excellent use of the power of digit 9 in addition to large corporations. Here are some further price-psychological pricing techniques that businesses employ:
Anchoring Prices
An additional well-liked price strategy that will boost sales of anything. Put a watch that costs Rs 2000 next to one that costs Rs 5000 if you want to sell it. People are prone to making comparisons, therefore a product that costs less is more likely to be purchased.
Divided Prices
Customers are always drawn to lesser prices. For instance, by pricing an item at Rs 6,000 at Rs 1500 a month, we can make it look cheaper. The Rs 6,000 price tag appears more expensive than the Rs 1500 one. Therefore, split pricing might aid in boosting any product's sales.
Please share your thoughts with us on these psychological marketing techniques used by businesses to boost revenue and sales. This newsletter's edition: did you enjoy it? Remember to subscribe to it so you can receive all the latest information on the marketing industry. Our website also has related articles that you may read.
