psychological pricing

(redirected from Price ending)

psychological pricing

an approach to PRICING which pays particular attention to the effect which a product's PRICE has upon consumers' perceptions of the product. This has a number of dimensions, including:
  1. the charging of very high prices for certain (generally high-quality) consumer products to convey an impression of product exclusiveness. High prices may appeal to particular high-income customers who wish to possess the product as a status symbol (‘conspicuous consumption’);
  2. the charging of high prices for technologically sophisticated consumer products in order to convey an impression of superior product quality and performance.

    This may play an important part in the buying decision when consumers are ignorant about the comparative properties of the brands of the product facing them, and thus use price as an indicator of quality;

  3. the charging of a price for a product which is just below a ‘round figure’ threshold price (for example 99 pence rather than £1) so as to create an impression that the product's price is considerably below the threshold;
  4. the charging of relatively low prices for frequently purchased and familiar products so as to create or reinforce an impression of value for money.
References in periodicals archive ?
50 per share or a total equity value of approximately $19 billion, using a five-day volume weighted average price ending on October 20, 2015 of $79.
Several rounds of bilateral negotiations were held between Turkmenistan and Pakistan on TAPI Gas price ending in October, 2011.
Hargreaves Services was among the better performers, its share price ending up 30p to close at 1048p.
That we'd never again see a price ending in '5' or '0' or any other number for that matter?
In the late 1800s American retailers would often attach an odd price ending to domestic goods because of the high quality image associated with odd priced imported products (Georgoff, 1971).
In this paper, we focus on testing whether there is a sales effect of one particular just-below ending, the 99 price ending.
48 per share, which is the five-day average closing price ending on March 24, 2006.
29 on the basis of the ten-day volume weighted average closing price ending on October 10, 2013 for Seadrill Partners common units.
The shares barely moved on the announcement, with the price ending the day down 8.
So, if you were to combine what she says works and what is most popular among publishers, a price ending in "79" would appear to be a strong candidate.
The purchase price for the common units to be issued to Kayne Anderson and Tortoise is based on Inergy's ten-day average closing price ending on November 17, 2004.
82, divided by FuelCell's 20-day volume-weighted average share price ending on the third trading day preceding the Global shareholders meeting to be called to approve the transaction.