13 Psychological Pricing Hacks to Drive Sales
September 21, 2018
Have you ever wondered why Apple chose to price songs in iTunes at .99 cents? Why all the food prices at football stadiums are listed from highest to lowest? Why Tiffany shows images of jewelry before showing the price?
The answer is price psychology.
Psychological pricing is a strategy retailers use to drive sales by tapping into the way the human brain works, including how we perceive quality, value and cost. Products that have been priced using psychological pricing techniques are designed to be more appealing to consumers, thus impacting buying intent.
When used strategically and deliberately to price products and services, psychological pricing enables retailers to boost conversion rates, drive sales and increase revenue. To help get you started, we’ve compiled 13 psychological pricing tactics you can use to effectively price your products.
Psychological pricing is an effective sales-driving strategy for businesses. By tapping into human psychology and the way consumers perceive price and value, businesses are able to price products more attractively and influence purchasing decisions. In addition to amended price structures, offering discount prices, BOGO offers and coupons is another research-backed way to influence sales.
Sources: Cornell | Journal of Consumer Research, 1, 2 | Quantitative Marketing and Economics | University of Arizona | Neuron | Carnegie Mellon University | Predictably Irrational | Journal of Consumer Psychology 1, 2 | Journal of Product and Brand Management | Journal of Marketing Research | Priceless: The Myth of Fair Value