behavioral pricing strategies

Behavioral pricing strategies focus on how customer perceptions and behaviors influence their response to prices. Instead of just setting a fixed price, businesses consider factors like psychological effects, buying patterns, and contextual cues. For example, offering limited-time discounts creates urgency, while setting prices just below a round number ($9.99 instead of $10) makes products seem cheaper. These strategies aim to influence decision-making and encourage purchases by aligning prices with how consumers think and behave, ultimately increasing sales and improving customer engagement.