What is psychological prices?

Psychological prices is a business concept supported by the idea that customers respond better to certain types of prices and are more likely to buy items with these prices. Most often, the final numbers have nine, 99 or 95 numbers, which are assumed that people ensure that they receive savings for what they buy. For some companies, the price of something for $ 19.99 instead of $ 20 in dollars (USD) will lead to consumers to believe that they get savings, and when it is only one penny savings, customers may feel more secure when purchasing.

There are many historical examples of psychological prices that date back to the end of the 19th century, where this tactics have ever used newspapers. In the 20th century it began to be used with regularity and now it seems that they always use it. Walk to Walmart® will reveal many examples of these psychological prices, where almost every price seems to end 0,98, 0.99 or $ 0.49.

According to those who believe that psychological prices are effective, this reduced number can affect consumer in many ways. They could only look at the dollar value, and in the heat of a specific shopping moment they could not be acknowledged that part of the cents could only be a penny or two of another dollar. The price of $ 9.99 could be read as $ 9.00 instead of nearly $ 10.00. This is sometimes called a left -hand effect. Lack of round solid prices also suggests that the price is in sale or cheaper, even if it is not.

The intentional and somewhat obvious attempt to determine prices is to ensure that consumers are attracted to prices and buy any available goods to which they are connected. Interestingly, some companies otherwise attract the price to what they think they could be other customer needs. Some companies have planted a whole number of prices to convey that they have reliable and unchanging attitudes towards customers, and this can be attractive to someoneTERÉ shoppers who really do not look for advantageous.

For a person who feels influenced by psychological prices, there are several good ways to bypass it. First, people should shop with a calculator in hand to call purchases and see the real cost of things before they buy. This is particularly important in regions where turnover tax is covered. Simply adding a turnover tax can be a call.

Another thing that can be useful is to read prices back. Always focus on part of the cents first, which is often printed smaller and round it to the nearest dollar. Then add it to the dollar price and look at a more real estimate of the price. Consumers are relatively accustomed to psychological prices and with several tricks can easily minimize its strength, especially when they are aware that it is an attempt to influence them is usually not an attempt to save money to consumers.