Okuzeka
Marketing vocabulary · Pricing

Psychological pricing

Meaning in marketing, with examples

nounCommon term

In marketing, psychological pricing means: Setting prices in ways that affect how customers feel about them, such as 99.90 instead of 100, so that the product seems cheaper than it really is.

In Turkish: psikolojik fiyatlandırma

How it is used

Very common in retail. Charm pricing, with prices ending in 9 or 99, is the best-known type. Other tactics include showing a crossed-out original price or adding a middle option so that it looks like the best deal.

Example sentences

  1. We use psychological pricing on the menu: 249 lira looks much cheaper than 250.

  2. Psychological pricing works less well for luxury products, where round numbers feel more premium.

Common collocations

  • psychological pricing strategy
  • charm pricing
  • price anchoring
  • prices ending in 99
  • pricing strategyThe method a company uses to set and change its prices, based on its costs, its competitors, the value customers see and its business goals.
  • price pointA particular price at which a product is offered, often chosen to match what a certain group of customers expects or can afford.
  • consumer behaviourHow people choose, buy, use and stop using products and services, and the personal, social and psychological reasons behind those choices.
  • discountA reduction in the usual price of a product or service, often offered for a limited time or only to certain customers.

More terms: Pricing

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