Psychological pricing

Psychological pricing means the pricing that considers the psychology of prices, not simply the economies; the price says something about the product.

In using psychological pricing, sellers consider the psychology of prices, not simply the economies. For example, consumers usually perceive higher-priced products as having higher quality. When they can judge the quality of a product by examining it or by calling on past experience with it, they use price less to judge quality.

A pricing policy that encourages purchase decisions based on emotion rather than reason includes odd-even pricing, customary pricing, prestige pricing, and price lining.

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