Psychological Pricing
Pricing strategies that leverage cognitive biases to influence purchase decisions.
Also known as: Charm pricing, Price psychology, Behavioral pricing
Category: Concepts
Tags: pricing, psychology, businesses, marketing, persuasion
Explanation
Psychological pricing uses how humans process prices to influence perception and behavior. Key techniques include: charm pricing ($9.99 vs $10—the left digit effect), prestige pricing (round numbers signal quality), anchor pricing (showing higher 'original' price), bundle pricing (perceived value vs separate items), and decoy pricing (adding an option to make another look better). Research shows these tactics work even when customers are aware of them. Other effects: prices ending in 7 or 9 suggest deals; even numbers suggest quality; comparative pricing ('was $199') creates urgency. For creators, psychological pricing considerations include: whether $97 vs $100 fits your positioning, how to structure tiers to guide choices, and when premium round numbers signal value.
Related Concepts
← Back to all concepts