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 ?
IT might be a bargain chain, but Poundland yesterday paved the way for a mega-bucks deal to buy arch rival 99p Stores for PS55million.
M2 EQUITYBITES-February 6, 2015-Poundland enters in sale and purchase agreement to acquire 99p Stores for GBP55m
WHEN Kingsgate Shopping Centre in Dunfermline, we saw dozens of people with Poundland and 99p Store bags.
Steak & mushroom potato toppers (454g), pounds 1.39; picota cherries (500g), 99p; 160 tea bags (double pack), pounds 1.49.
ASDA: Sage & onion stuffed chicken (1.89kg) pounds 2.38; ASDA ready meals (400g) 99p were pounds 1.29; cauliflowers 39p; ASDA chocolate fudge ice cream cones (4-pack) 99p were pounds 1.39; Savanna summer cocktail (70cl) pounds 1.49.
THERE are bargains in comfort food and five-a-day fruit and veg at Lidl as Lighthouse Bay cod fishcakes (270g) are scaled down from PS1.25 to 99p. Chef Select Smoky BBQ Boneless Beef Ribs (450g) fall from PS2.99 to PS2.39 while Smoky BBQ Pulled Pork (400g) tumbles from PS2.29 to PS1.85.
Its bid interest comes after a testing time for Poundland, which had seen its shares slump by a third in a year following tough trading and a dif-ficult takeover of rival 99p Stores.
Breaks Q Fly from Birmingham 3 nights from only PS279pp With FREE Nights 99p Bar October Arrivals** Conditions apply on many dates* Other durations are available Price Includes: Return flights from Birmingham to Jersey Accommodation at the 3* Mayfair Hotel, St Helier -close to town centre shops, bars and restaurants Full English Breakfast Health club and indoor swimming pool facilities Entertainment most evenings Return coach transfers from Jersey Airport One item of checked in baggage per person Check-in and airline booking fees Fully protected by ABTA and ATOL **99p Bar available until 11pm each day.
With FREE Nights on many dates* 3 nights from only PS279pp Q Fly from Birmingham 99p Bar in April & October** conditions apply nts from PS305 | 5 nts from PS335 | 6 nts from PS359 | 7 nts from PS389 Price Includes: Return flights from Birmingham to Jersey Accommodation at the 3* Mayfair Hotel, St Helier -close to town centre shops, bars and restaurants Full English Breakfast Health club and indoor swimming pool facilities Entertainment most evenings Return coach transfers from Jersey Airport One item of checked in baggage per person Check-in and airline booking fees Fully protected by ABTA and ATOL **99p Bar available until 11pm each day.
SHOOSMITHS has advised Poundland on all real estate matters on its PS55 million acquisition of 99p Stores.
LAW firm Shoosmiths has advised Poundland on all real estate matters on its PS55 million acquisition of 99p Stores.
30 September 2015 - UK-based single price general merchandise retailer Poundland Group plc has closed its acquisition of UK value general merchandise retailer 99p Stores Ltd for an enterprise value of GBP 55m (USD 83.70m), the company said.