This empirical study concentrates on several aspects of price perceptions, especially on price endings, the first (non-zero) digit in a price, symbolic meanings, eye-catching sequences, and price cuts framed in percentage or euro terms and uses a descriptive design to determine the extent to which retailers of grocery, furniture, clothes, hardware, consumer electronics, and food apply these psychological pricing methods in Austria.Odd and even pricing are common practices for a wide range of prices.Indeed, low involved customers, those with a small hedonic and symbolic attachment profile, low educated, low income and younger customers are prone to select the nine-ending priced products and services.
Odd pricing is a part of something that experts call psychological pricing.
In this article, you will learn about 1) an introduction to the psychology of pricing and 2) leading pricing strategies based on psychology.
For example, consider the two price tags, $100 and $99.
The first price tag is a three-digit figure and breaks the customer’s mental barrier of favouring a two-digit price.
These odd prices actually give the illusion that you are paying drastically less than you actually are.
So, to the conventional human mind, 9.99 seems closer to 0 than to 0, just because it starts with “1”.
The unlucky digit 4 appears less frequently in price endings in Chinese restaurants.
The lucky number 9 is more frequently used on Chinese menus.