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$99.95 is a price mentioned on a product and does not make the consumer feel it is $100,00 even though it is $100.00. The consumer gets a nice feel that it is not $100.00 . This scenario is called psychological pricing.
Psychological pricing is a marketing/business concept which is used to influence the consumer buying power.
Agreed with experts answers. I remember a shoe company in India (bata) does that.
It is the pricing of products and services according the mentality and life style of the consumer. If customers are fonds of luxurious things then they will willingly pay high price and according to this criteria their market get targeted.
Setting prices according to the psycho-graphics of the targeted market segment.
Endorse already given Answers. Well explained.
Psychological factor effect
In determining the price of the product
And the extent of the target price for the item portability
You answered the question well. Thanks
Agree with Mr, Sidvin
It is an Pricing Strategy that specializes in inflicting psychological effects on consumers which makes them involve in 'Pulse Buying'
It is an marketing strategy based on utilizing particular pricing techniques to form an Psychological impact on the consumer's minds.
Some of best known techniques are:-
Psychological pricing (also price ending, charm pricing) is a pricing/marketing strategy based on the theory that certain prices have a psychological impact. The retail prices are often expressed as "odd prices": a little less than a round number, e.g. $19.99 or £2.98. Consumers tend to perceive “odd prices” as being significantly lower than they actually are, tending to round to the next lowest monetary unit. Thus, prices such as $1.99 are associated with spending $1 rather than $2. The theory that drives this is that lower pricing such as this institutes greater demand than if consumers were perfectly rational. Psychological pricing is one cause of price points.
