Psychological Pricing: How to Use It on Your E-Commerce Site?

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Psychological pricing is a pricing technique that involves setting prices based on consumer perceptions rather than simply costs or profit margins. This method is particularly used in the e-commerce sector, where competition is intense and shoppers have access to a multitude of online options. We invite you to discover how a psychological pricing strategy works and how to use it to significantly increase sales and profitability of your products on your e-commerce site .

What is a psychological price?
Psychological pricing is based on perceived value, meaning spam number database that potential customers evaluate a product not only based on its cost, but also on the perceived bargain they are getting. For example, studies show that prices ending in 0.99 are often perceived as a bargain compared to round prices. By slightly decoupling price from the product's value, consumers feel they are getting a lower price, even if the difference is minimal.

What are the different psychological pricing strategies?
Currently, there are various strategies for psychological pricing that allow companies to increase sales. Some brands introduce prices ending in .99 or .95, while others favor odd numbers. Still others choose to eliminate monetary units altogether.

Prices ending in .99 or .95
Prices like €19.99 are often more attractive to consumers than €20. They give the illusion of a lower price and provide greater incentive to purchase.

The use of odd numbers
Prices like €127 or €147 without decimals are often perceived as more considered and accurate, giving the impression of a carefully calculated price.