This document discusses psychological pricing strategies used by businesses to influence customer purchasing decisions. It describes techniques like charm pricing, reframing prices to seem smaller by removing commas or charging in installments. Other strategies aim to maximize reference prices by exposing customers to higher incidental prices or decoy products. Businesses can also reduce the pain of paying through bundling, shifting focus to time, or following the rule of 100 for discounts. The goal is to use customers' emotional responses to encourage sales.

1. PSYCHOLOGICAL PRICING
BY- Aditya Pratap -15PGP146
Gowtham Naik-15PGP149
Mansingh Hembram-15PGP151
Ravindra Arya-15PGP153
Ronak Choudhary-15PGP155
Himanshi Shivhare-15PGP158

2. Psychological Pricing
• Is based on the theory that certain
price figures have psychological impact.
• Uses the customer's emotional response
to encourage sales.

3. Psychological pricing strategies
• Charm Pricing

4. Price Reframing
- Keep the Shipping and Handling
Separate.
-Offer Payments in Instalments.

5. - Mention the Daily Equivalence
Price Reframing
R
E

6. Price Reframing

7. Influence customer by small
magnitude.
-Position Prices Toward the Bottom-Left
- Use a Smaller Font Size

8. - Remove the Comma When Possible
- Use “Congruent” Language
Influence customer by small
magnitude.

9. -Be Precise With Large Prices
Influence customer by small
magnitude.

10. Maximize Reference Price
-Expose People to a Higher “Incidental”
Price.
- Expose People to Any High Number

11. - Raise the Price of Your Previous
Product
Maximize Reference Price

12. Emphasize the Gap Between
Reference Prices
- Visually Distinguish Higher Price
Comparisons
- Offer a Decoy Product

14. Reduce the “Pain of Paying”
- Remove the Currency Sign
- Charge Customers Before They
Consume

15. -Bundle Your Product
- But Don’t Bundle Expensive Products
Reduce the “Pain of Paying”

17. - Shift the Focus Toward Time-Related
Aspects.
- Create a Payment Medium
Reduce the “Pain of Paying”

18. - Follow the “Rule of 100”.
- Provide a Reason for the Discount
Use Discounts Strategically

19. - Avoid Discounts With Precise Numbers
Use Discounts Strategically

20. Flash Sales

21. Buy one, get one free

22. REFERENCES
• http://www.nickkolenda.com/
• http://smallbusiness.chron.com/
• https://econsultancy.com