Behavioral Pricing (Concept)

Behavioral pricing is a strategy that considers how consumers' perceptions, emotions, and decision-making processes influence their willingness to pay. Instead of just setting prices based on costs or market competition, businesses use insights into human behavior—such as how consumers perceive value, react to discounts, or respond to pricing cues—to optimize prices. This approach recognizes that psychological factors, like urgency or scarcity, can impact purchasing decisions, allowing companies to better appeal to customers' instincts and improve sales and profitability.