Psychological Pricing

MKT 521 *Psychological set S*trategy drawframe destination Pricing. Any business can leverage on reference pricing by positioning their harvest in the food market place along with high prise or luxury items to make consumers comprehend that its product adequates into the same crime syndicate. However, if consumers feel that the product does not belong in that category the pricing and positioning strategy allow for not work and be it counterproductive for the product and the caller-out.Two common forms of psychological pricing are one(a) pricing, and prestige pricing. Odd Pricing. In a pick up conducted by Schindler & Kibarian in 1996 they tested odd pricing using three recitals of a direct mail catalog for womens clothing. The catalogs were indistinguishable except for the prices which ended with 00, 99 or 88. The version with prices ending in 99 generated 8% more sales tidy sum and had more purchasers than the 00-ending version.The 88-ending catalog produced a unif orm sales volume and number of purchasers to the 00-ending version. In this example we can clear see how the consumer perception of better comfort directly impacted sales, even though there was an alternative that ended in 88 which will actually be lower in value was not identified by consumers. luxury *prestige Pricing*. drawframe higher(prenominal) prices usually denote higher quality.Luxury brands are a perfect fit of this strategy. Another example of companies that use prestige pricing in the car effort are Mercedes-Benz, Ferrari and Rolls Royce. Psychological pricing is a good strategy to use when the company is certain that it will be the best-fit for the product, differently it can be counterproductive. References Kotler Philip, Armstrong Gary. Principles of Marketing long dozen Edition. Prentice hall