The price of a product is capable of provoking reactions in users. Depending on these reactions, they will decide whether to buy it or not. Therefore, you must be careful with your company when setting the prices of your products or services. This strategy is known as psychological pricing and, contrary to what you might think, it does not imply that the product has to cost less. Sometimes, you even have to increase the price a little to make it more attractive.
Why are psychological prices used?
Price is one of the most important parts of product gambling data brazil marketing . Not only must the consumer find the price reasonable and adjusted to the quality of the product offered, it must also be an attractive price that encourages purchase. Psychological prices are used as a sales factor because they allow increasing the number of customers without making any kind of investment or having to make any changes in the production process. How many times have you opted to buy the most expensive product because you think it is better? How many times have you bought that product that costs ninety-nine cents?
Psychological pricing strategies
The round price strategy
Have you noticed that many packages already have the price included in the design itself? Have you noticed that they are usually round prices of €1 or €2? This strategy is known as the 'round price strategy' and it helps our brain interpret the price as being round, perfect. It is very common in snacks such as doughnuts, pastries, or chips, and it encourages us to make compulsive and unnecessary purchases that give us that feeling of perfection.
The odd price strategy
Odd pricing is a strategy that tries to make the brain believe that a product is cheaper than it really is. That is why an odd number ending in 9 tends to be used. So, if a product costs €69.99, our brain will think that what we are going to pay is sixty 'something'. In reality, we are practically paying €70.
The price of prestige
We tend to perceive more expensive items as being of higher quality, although this is often not necessarily the case. Prestige pricing involves increasing the price of a product compared to the competition. This way, the customer will interpret the product as being better and will choose to buy it. Buying expensive products also makes us feel that we have a higher purchasing power, so the psychological effect is twofold.
Relative price
The relative price depends a lot on the physical location of our product in the store, or on its placement on the different websites where it is offered. This marketing strategy takes into account the prices of the competition, so that if, for example, we wanted to buy a €60 fan, it would seem cheap if it appears next to two others that cost more than €200, and expensive if it appears next to one that costs €15.
The usual pricing strategy
It consists of maintaining the price that a product has always had, since, if it varies, it can have a negative impact on sales.
There are many psychological pricing strategies and each company applies the one it considers most appropriate for its products, also taking into account that it will vary depending on the type of item, the time it has been on the market, or the physical location of the product. What is clear is that all companies carefully consider the price before launching into the market, and that our brains sometimes play tricks on us in this regard.
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