What Is The Advantages Of Psychological Pricing?


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Amanda Wells answered
The main advantage is that, on the whole, it works! Resarch generally indicates that customers do tend to be influenced by strategies like pricing a $10 product as $9.99. However, the effect seems to be wearing off over time, and now psychological pricing is adapting to new market condtions - for example, things are now sometimes prices simply as '$10 so the customer gets an impression the firm is honest!

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