Psychological prices sweep the Iraqi markets
Mahdi Hanoun Al-Alaq
Mahdi Hanoun Al-Alaq
Most retailers (wholesalers sometimes) resort to the adoption of fractions in the pricing of their goods and services, whether in virtual reality or in real life, as one of the pricing methods affecting the hearts of customers, or
the so-called (fractional pricing) because the specified price contains fractions because of its positive impact on Consumer buying decision, and
accordingly psychological pricing depends on simple changes that deceive the brain, so this process is called magic pricing as well.
The strategy is followed by most of the global company, such as “Apple.” If you open the App Store, you will find that the application is based on the price of $ 9.99 instead of writing $10 explicitly.
Also, for example, if there are two products of a particular merchandise and one of them is priced at $19.99 and the other at $20.00, then customers often tend to prefer the first good or service over the second, believing that they pay one dollar less than the second one.
This method of setting the price gives an indication to the customer that the price is right for him and that it is inexpensive or also suggests that the seller is doing his best to keep the price as low as possible.
Also, the way the price appears can psychologically affect buyers.
Giving up a few cents makes customers feel like they are spending less money.
It seems like $20 is cheaper than $20.00 because the first number is not long in appearance.
Another form of psychological pricing is single pricing, as studies have shown that 70% of customers buy online items from Amazon that end in an odd number more than they buy items that end in doubles because the prices are different for the buyer, for example (189 dollars, 149,000, 199,000)
It is a psychological method to attract customers towards the product and arouse its interest.
The fractional and odd methods may be combined at one price, for example (189.99) (19.99).
In fact, most customers are ashamed of taking the remaining cents!!.
There is also a recent psychological pricing method that some retailers or wholesalers resort to, which is "fake time constraints" such as (one-day offer only!) or discounts that end within a few hours, which encourage customers to make purchases quickly - before the expiration date offers.
One of the disadvantages of psychological pricing is that its strategy may fail in the future, as messing with people's minds sometimes can backfire, because the usual person refuses to get something for $4.99 at $5.00 next time, no matter how cheap the item is.
Also, having a lot of discounted merchandise can damage a brand's reputation, if that reputation is based on prestige, luxury or quality, because some people think that discounts show poor product quality or that customers are being manipulated.
In conclusion, traders should beware of the thin line between continuing to compete in the market and the appearance of identical prices to competitors.
If the price of all sellers for the same commodity is $2.99, what distinguishes you from others?!.
Views 610 Date Added 02/22/2022