Have you ever had more of a desire to buy a product priced at $19.99 rather than $20.00 thinking that you were getting a good deal? Or what about when deciding between two brands of the same product you bought the $20.00 one rather than the $19.99 one thinking the $20.00 one was of better quality? This is a popular psychological pricing method known as odd-even pricing based on the belief that certain prices are more appealing to buyers. This method involves setting a price in odd numbers, just under round even numbers, to make people think they are getting a better deal. Or if a company is looking to present an image of high quality for their product they may decide to price the product at even levels, which is also known as prestige pricing. Prestige pricing is another psychological pricing method that involves setting a higher price to ensure higher quality compared to a lower priced product. An example of this would be a pair of Ray Ban sunglasses is usually priced around $150.00 as opposed to a cheaper pair that one may find at Walmart priced at $9.99. Ray Ban prices their sunglasses at a higher price ending in even numbers to promote high quality and Walmart prices the sunglasses at $9.99 to promote a bargain.
Can you think of a product you recently bought because it was priced in odd numbers? When buying it did you think the price was lower than it really was?
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