psychological pricing

Research has also found psychological pricing relevant for the study of politics and public policy.

The research showed a clear trend towards psychological pricing after the transition.

Psychological pricing is one cause of price points.

The psychological pricing theory is based on one or more of the following hypotheses:

The theory of psychological pricing is controversial.

Exactly how psychological pricing came into common use is not clear, though it is known the practice arose during the late 19th century.

Do you use psychological pricing?

'Psychological pricing' or 'price ending' is a marketing practice based on the theory that certain prices have a psychological impact.

If the price of a product is $100 and the company prices it as $99, then it is called psychological pricing.

Perceptual price points (also referred to as "psychological pricing" or as "odd-number pricing")

In practice, the proportion of transactions rounded upwards is greater, due to psychological pricing of items ending in 90-99 øre.

The importance of this benchmark for detecting irregularities in prices was demonstrated and with it a clear trend towards psychological pricing after the nominal shock of the euro introduction.

Other countries such as Germany favoured retaining the coins due to retailers' desire for €1.99 prices, which appear more attractive to the consumer than a €2 price (Psychological pricing).

These include: price skimming, price discrimination and yield management, price points, psychological pricing, bundle pricing, penetration pricing, price lining, value-based pricing, geo and premium pricing.

In practice, individual items will probably remain priced at so-called "price points" (or psychological pricing and odd-number pricing) ending in 98 and 99 to maximize rounding gains for the vendor, especially in the case of single item purchases.