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 ?
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.
M2 EQUITYBITES-September 30, 2015-Poundland Closes GBP 55m Acquisition of 99p Stores
The Competition and Markets Authority (CMA) has announced its final report in relation to its Phase 2 review of Poundland s proposed purchase of 99p Stores.
BANKING AND CREDIT NEWS-August 26, 2015-Competition watchdog provisionally clears Poundland's takeover of 99p Stores
POUNDLAND'S PS55m acquisition of rival 99p Stores has provisionally been given the green light.
BUDGET brand Poundland is set to buy rival 99p Stores in for PS55m.
THE boss of Poundland believes its PS55m takeover of 99p Stores will make the smaller chain more effi-cient - as customers would no longer have to wait for cashiers to fish around for a penny change.
paper plates (20), PS1, Poundland Plastic |table cloths (two), 99p, 99p Stores Haunted house | cake stand, PS1.