Pricing Perception Highlights
Consumer psychology influences how companies set their prices. Below are some behavioral insights that are worth considering while pricing a product or service:
A highly priced product often generates a greater perceived value and can potentially attract more buyers.
A low-priced product can turn off customers, who will perceive it as less valuable.
Simply having more than one pricing option, particularly when one seems very expensive, can drive customers to pay for the more affordably priced option.
People associate ‘charm’ prices, which end in 9, 99, or 95, with discounts and better deals.
People perceive prices to be smaller when they contain fewer syllables.
Buyers pay more money when prices are specific (e.g. $36.60 vs $31.)
Round prices (e.g., $100) are processed fluently, whereas non-rounded prices (e.g. $98.76) are processed slower.