As an Amazon Associate I earn from qualifying purchases.

Psychological Pricing Definition and Explanation PDF Download

Learn Psychological Pricing definition in marketing with explanation to study “What is Psychological Pricing”. Study psychological pricing explanation with marketing terms to review marketing course for online MBA programs.

Psychological Pricing Definition:

  • Pricing that considers the psychology of prices, not simply the economics; the price says something about the product.

    Principles of Marketing by Philip T. Kotler, Gary Armstrong

Psychological Pricing Explanation:

Psychological valuing is the act of setting costs marginally lower than adjusted numbers, in the conviction that clients don't gather together these costs, thus will regard them as lower costs than they truly seem to be. This training depends on the conviction that clients will in general process a cost from the furthest left digit to one side, thus will in general disregard the last couple of digits of a cost. This impact gives off an impression of being complemented when the fragmentary segment of a cost is imprinted in littler textual style than the remainder of a cost. A case of mental estimating is setting the cost of a car at $19,999, as opposed to $20,000. This sort of valuing is incredibly regular for customer products. A minor departure from the idea is to set costs higher, in the conviction that clients will connect more significance to an item if the cost is set at an excellent level.

Keep Learning Marketing Explanations

What are Dissociative Groups?

This group is characterized on the bases of attitudes, believes, values, norms or behaviors related to an individual. Therefore, an ...

What is Total Customer Value?

All out client worth is the view of what a client is getting from a given item or administration in ...

What is Marketing Communications Mix?

Advertising is a wide business work that incorporates item innovative work, marketing and dispersion procedures and estimating, just as correspondence ...

What are Pay-Per-Click Ads?

It is a web based promoting model in which publicists pay each time a client taps on one of their ...

What is Core Competency?

This concept is defined as a combination of different resources that differentiate a product in the market. Core competency is ...

What is Corporate Retailing?

Corporate retailing describes retailing outlets that attain economies of scale, customer loyalty, brand recognition, purchase ability, trained employees, and higher ...