Psychological Pricing

Psychological pricing is a strategy that utilizes the emotional response of consumers to influence their purchasing decisions. It often involves setting prices just below a round number, like $9.99 instead of $10. This tactic creates the perception of a better deal, encouraging customers to buy. It can also involve premium pricing to convey quality or discounts to evoke a sense of urgency. By appealing to the subconscious feelings and perceptions of buyers, businesses aim to boost sales and enhance customer satisfaction without sacrificing profitability.