In this article you will find five really functional and easy-to-implement tips on psychological pricing. World functions and psychology finds the reason behind everything that a human mind thinks as it is a branch of science and finding reason behind everything is a nature of science. And now psychological pricing becomes an interesting field for it deals with how a customer will think when he witnesses the heart breaking factor “price tag”. Price psychology tells us what kind of format a marketer should display the price to their customers based on the psychology of a customer.
After hacking customers’ mind here are 5 easy tips in no particular order, which might help you to implement to make your price psychologically more appealing.
TIP #1: commit to memory, Comma do matters the most!
We all have learnt about using commas to separate digits. This comma participates effectively in price psychology also. A small punctuation mark positively has the power to influence the price perception. A number with a comma in between appeals to be big to the king, the customer here than a long digit with no commas. For instance, Let us take you are seeing a price tag of $2200 and another price tag of $2,200 dollars. A rational human being will know both are same price but the price with comma will seem huge to you.
Several psychological studies had revealed that the version of price without commas in them appears to be standard and huge than the versions without commas. So all you got to do is that remove commas from your price tag if you want your price to be perceived smaller.
TIP #2: Size of your discount and retail price matters too!
We all are well aware of one of the best marketing techniques, but the way we display ads for that discount is probably not the right one! Psychologically the small font matches the low price. Psychology researches reveals that keeping your retail price in larger font and the sales price in the smaller font will make the customer feel the urge to buy the product.
For instance your retail price is $100 dollars and you are giving 50%n discount.Now your sales price is $50.Your way of displaying the ad should be like retail price displayed in larger font and sale price in a smaller one which will be more appealing to the customers.
TIP #3: Do u think partitioned pricing is better? Definitely not.
Partitioned pricing is one of the major phenomenons in pricing psychology which every marketer would be aware of by now. When store displays a price they divide the rate separately and the additional charges separately. This is actually a good strategy if I’m not wrong. You can use it if the additional charges are lesser and won’t affect the total pricing much
According to the psychological research of pricings it is better to combine all the prices. Several studies had proved that combining the total price is more appealing to the person who buys the product. For an example, one product’ pricing is like $25 +$5 for shipping and $3 for handling. And the other product has listed its pricing as $33 shipping and handling charges included. The second deal will attract you the most obviously.
TIP #4: Go from the highest to lowest:
WE all want people to choose most expensive ones from the set of available products. But economically we will have products of all the rates though, we prefer people to choose a bigger economic one. So here is the trick for it. Order in which you present the product is very significant. In a recent study it is proved that customers are lured to buy an expensive one out of all the categories if the products are listed from highest rate to the lowest one.
If you go to a restaurant and ask for a menu card, the rates of the dishes are in the descending order. You will bother the least about the low priced ones. You will have the intention to choose medium priced or the highest price.
TIP #5: odd pricing-A witty strategy.
May be the final tip here but this is the first theory of psychological pricing. This theory was by Boyes, Lynch and Mounts in the year of 2007.When it comes to pricing people think that loss is better than gain. Our human mind always thinks that few cents actually means a lot than the whole dollar. Prices will be more appealing if it is displayed in the odd number.
For instance if the price is $5 dollars we feel it as a huge price and if the same product has the price tag of $4.99 the we would be pleased to buy the product. Only one cent matters here. Though everyone are aware of the strategy, customers will automatically have this mentality. So it is the well working strategy of all the time. Have down pat, the left most digit matters the most and customers not bothered much about the cents.
These are most popular tips we thought of sharing for the marketers to make their market place more appealing to the buyers. Easy to follow and simple tips may change your world. So don’t hesitate to implement it. And for the customers, be aware of the marketing strategies before buying anything! Know that final product you buy will always be a profit to the business men and that is rule of the world.