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 ?
In this paper, we focus on testing whether there is a sales effect of one particular just-below ending, the 99 price ending. We first present two commonly proposed rationales for expecting a sales advantage of 99 endings and review past studies that have tested for such a sales effect.
Through a process of "incidental" or low-involvement learning (Postman, 1964; Hawkins and Hoch, 1992), consumers may come to associate a particular price ending with characteristics of the marketing context in which that price ending is often used.
3,310,622 will be the number of common units to be issued to Seadrill Limited at a price of US$32.29 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 8.5p at 795.5p.
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 transaction has been unanimously approved by Gramercy's Board of Trustees and represents a premium of 23% over the 30-day volume-weighted average share price ending May 4, 2018 and a premium of 15% over the closing stock price on May 4, 2018.
The offer values SanDisk common stock at $86.50 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 $79.60 per share of Western Digital common stock.
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?"
Imported British goods underwent a currency conversion of the British pound sterling into dollars, often giving British goods an odd price ending. As a result of the quality attributed to British goods, odd prices became associated with superior products.
* Odd price endings were harmful to the image of higher quality stores.