Understand The Great Marketing Strategy Behind Prices Ending With 9
We have shopped many products online or offline and we have seen prices of products ending with 9. Many of us may wonder why these prices are displayed like this and most of us don’t even care about it. Is it really making a big difference in their sales?
Have you ever wondered why these prices are displayed ending with 9 instead of ₹100, ₹200 & ₹300? The main reason behind this is that our brain reads from left to right. The first digit of a price is the most recognizable to us, and it provides the optical illusion of purchasing something in the lower number series. For example, when 299 is written, it psychologically provides the impression that we have acquired the thing in the “200 something” range.
Understanding this psychology, many big MNCs are selling more products and making huge profits. This genius marketing is also known as psychology marketing. There is evidence that with this marketing strategy the sales of the products increase drastically. With this 9 strategy if we showcase a product, for example ₹99999, people understand it as a five-digit price and not a six-digit. This could create a less-digit effect for us.
This makes items cheaper than they really are. It’s unclear when psychological pricing became popular, although it’s thought to have started in the late 1900s. It may have started with a newspaper pricing battle, according to one source. Some different ways of psychology pricing are as follows:
1. Value-Based Pricing:
Value-based pricing is a “simple” pricing strategy, but it’s also one of the most difficult to implement because it necessitates deep knowledge of the market as well as a great deal of self-reflection. You utilize your price to control customer knowledge of your goods in a value-based pricing approach.
Do you aspire to be known as a high-end brand? Then you should probably charge a premium. Do you want to be known as the most cost-effective alternative on the market? If this is the case, your price should reflect that.
Value-based pricing necessitates an extensive study of your target market, competitors, and business objectives.
That requires a lot of cross-departmental cooperation, but it’s a terrific way to create a more cohesive organization. That requires a lot of cross-departmental collaboration; collaboration is a terrific approach to creating a more unified strategy.
2. Odd-Even Pricing:
Odd-even pricing is a psychological pricing strategy that harnesses the power of numbers to urge customers to take action. The terms “odds” and “evens” refer to the numbers in a price: “odd” retail prices contain largely odd numbers (such as ₹799), whereas “even” retail prices contain mostly even numbers (such as ₹800).
Prices that finish in odd digits are the most common yet even prices have their own strength. Odd-even pricing can be utilized effectively in a variety of ways, including offering strategic discounts or just creating a distinctive price.
3. Charm Pricing:
Odd-even pricing is quite close to charm pricing. Companies utilize prices to evoke an emotional response from customers and urge them to take action with a charm pricing approach.
Late-night infomercials feature some of the most prominent examples of charm pricing. These price schemes are renowned for their uniqueness, excellent bundling tactics, and in many cases, their execution.
Psychological pricing is a marketing strategy in which the price of a product is set in such a manner that it appeals more to the product or service’s customers. It can assist the firm in gaining more customer attention and, as a result, increase total sales. It also makes it easier for customers to make a buying choice swiftly. On the other hand, if customers use it wrongly, it may have a negative influence. Moreover, it is not a guarantee of sales for the firm. It is, instead, only a tactic.