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 ?
Retail prices range from $19.99 for the vinyl runner to $49.99 and $59.99 for the table throw.
9781634401876, $19.99 Library Binding, $4.82 PB, 32pp
The unsweetened juice is available in 11-ounce bottles for $19.99. Other elderberry products offered by River Hills include jelly ($7.49) and lemonade ($7.49).
* Clean with the power of nature using Aura Cacia's new Home Care Essential Oil Blends ($19.99).
9781616557232 $19.99 hc / $15.12 Kindle www.darkhorse.com
Roland Harvey (Allen & Unwin $19.99); Two in one with The Saddle Club, Horse Sense & Horse Power, Horse Crazy & Horse Shy Bonnie Bryant (Random House $12.95 pbk); 4 books in one Our Australian Girl 1808 The Grace Stories Sofie Laguna (Viking $24.99), 4 Aussie Bites in one Brilliant Bites for Boys (Puffin $19.99 pbk)
From left to right: Laundry Tin--Small $19.99, Medium $29.99, Large $49.99, Petfood Tin with Spoon (Available in Medium & Large), Medium $29.99.
Guy Barter's GROWING VEGETABLES & HERBS (97811845336431, $19.99) provides a new, practical guide to the practice of growing your own food and comes from the Royal Horticultural Society's top vegetable grower.
The suggested prices of the 50-unit and 100-unit packages are $12.99 and $19.99.
Stiktamers[TM] ($19.99), made from a hybrid foam rubber, deaden the string slap and limb vibration of your recurve bow.
The Intensive Skin Repair Serum ($19.99) contains organic cotton thistle and a blend of antioxidant-rich fruits.
A five-piece set--a 40-ounce decanter and four 16-ounce wine glasses--retails on sale for $19.99. The Classic Charm set, with its smaller capacities, enables one bottle of wine to stretch a little further.