PSYCHOLOGY OF PRICING is a tactic that is commonly used to impact customer behavior. Research has shown that certain ways of formatting prices can spark a subconscious response from a customer and encourage a purchase.
So let’s get started. Get an overview of 5 psychological pricing tactics you can use to impact customer behavior:
1. When listing a price, CUT THE CLUTTER – Removing punctuations & extra zeros lessens the pain response your customer feels about the price. As a result of which, your customer is more comfortable making a purchase.
2. Utilize the LEFT-DIGIT effect – The leftmost digit has the most impact on our perception of how expensive an item is. There may be just a rupee difference between the price of two products, but still, the lesser one makes us feel cheaper. As you can see in the given example (image with pointer number 2).
3. Keep PRICE PLACEMENT LOW & your FONT SMALL – As per the given example (image with pointer number 3), you can see that the bottom price tag feels less expensive to your customers even though the price of both pens are the same. This is because of the small font size & low placement on the tag.
4. Encourage ‘VALUE’ shopping over ‘BARGAIN’ shopping – Customers are always more likely to purchase something if they perceive it has some better value by itself. So, in spite of bargaining with customers, you can concentrate more on your product value.
5. Deploy the ‘DECOY EFFECT’ – Influence a customer’s purchasing decision by adding a third, more expensive option to the mix. It increases customers’ preference for the dominating option & pushes them to buy the product you want to sell.
We are all in business to solve problems, add value and make a profit. But how do you effectively price your product or service to increase sales and make more money with little or no effort? It’s simple; use psychological pricing!
Elevate your sales with the psychology of pricing! Join Neonage Solution & master the art of pricing. Check our website to boost your business growth: https://neonage.co.in/