Crack the Secret Code to Profitable Pricing Strategies
Psychological Pricing: The Power of Perception
Psychological pricing leverages consumer psychology to influence purchasing decisions. Techniques such as charm pricing (e.g., $9.99 instead of $10) or offering products at a perceived discount can significantly impact sales. According to a study by the Journal of Consumer Research, psychological pricing can increase sales by up to 24%4. This strategy works by creating a perception of value that encourages consumers to act.