Understanding Psychological Pricing

What is the main goal of psychological pricing?

• To make products seem cheaper than they are

• To make products appear more expensive

• To increase the actual value of a product

• To confuse customers about the price

Why does a price of £1.99 seem cheaper than £2.00?

• Because our brains focus on the first number

• Because it is closer to £1.00

• Because it is a whole number

• Because it is a common marketing tactic

How do companies like Apple use psychological pricing?

• By using flashy advertisements

• By offering discounts on all products

• By pricing products just below a round number

• By increasing the price of older models

What could happen if psychological pricing is not used correctly?

• Customers might feel tricked

• Products will become more expensive

• Sales will automatically increase

• The brand will gain more trust

What is the potential risk of using psychological pricing?

• It can lead to increased production costs

• It can negatively impact brand perception

• It can make products too cheap

• It can confuse the company's marketing team