psychological pricing

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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 ?
And for those children who escape the physical toll of the war, there is a heavy psychological price to be paid.
What psychological price might Nina have to pay if she does succeed in freeing herself from repression?
She added: "There is a psychological price being paid by business people as crime is now more organised, more professional, more ruthless and more pervasive.
I'm very concerned that in the longer term some of my people who have done phenomenally difficult and dangerous work in Afghanistan may pay a deeper psychological price for the work that they've conducted.
Despite this indoctrination, soldiers who kill pay a huge psychological price, especially in terms of post-traumatic stress.
When oil prices stormed through the psychological price barrier of $100 per barrel at the beginning of this year, the oil industry, analysts and consumers joined forces to blame a shortage of crude supply in the market.
As an advanced practice nurse in Alabama, this writer has cared for hundreds of individuals and their families in the critical care environment who pay the physiological and psychological price for their use of methamphetamines.
Although in many cases it can be an economic decision, there can be abig psychological price to pay both for the young man and his parents.
History shows us that once psychological price barriers are broken other increases are more likely to follow.
But the psychological price of a lifelong gluten-free diet is often underappreciated by physicians who prescribe it, Dr.
Some companies set what could be termed a psychological price point on flat-rate repairs, rather than one based on actual repair cost data.
Just as we are learning that there is a sharp increase in the incidence of breast cancer in women who have had abortions, there can also be a heavy psychological price as well.

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