(11 Jun 2014, 2:23 pm)Andreos Constantopolous wrote Psychologically, breaking the 99p barrier can make a difference.
A well known sandwich chain, put out a consultation a few years back, prior to increasing their meal deal beyond the £2 mark. The idea was to see what people thought and whether it would put people off buying from the store.
I'm meant to be on a three-month break from Business Studies now that I've finished the exam!! Haha!
God knows how many times I've had to read the following:
Psychological pricing
Sometimes prices are set at what seem to be unusual price points. For example, why are DVD’s priced at £12.99 or £14.99? The answer is the perceived price barriers that customers may have. They will buy something for £9.99, but think that £10 is a little too much. So a price that is one pence lower can make the difference between closing the sale, or not!
The aim of psychological pricing is to make the customer believe the product is cheaper than it really is. Pricing in this way is intended to attract customers who are looking for “value”.
..and more irritatingly - it wasn't in either Business exam!