When reading the term psychological pricing, one of the first things that pops into your head is probably that ubiquitous .99 price tag that retailers have been using for ages to trick customers into perceiving the price as smaller than it is. For many decades, this seemed to be the case, and behavioural economists have since dedicated thousands of hours of research examining how price perceptions are formed, and how these can be manipulated in the firm’s favour.
However, today’s customers have a very sophisticated understanding of what their true costs are, and if we’re being pragmatic, the majority of the psychological experiments conducted in dusty university classrooms have limited implications for businesses today.
But there are few that stand out, and consistently show great results for businesses. These are the ones that involve doing actual strategy and take time and effort to implement. But with a little dedication, you will soon see that the payoff is imminent. Here are 3 strategies that can create great results for your business: