#finance #marketing
Brands use these psychology pricing strategies to trick you into spending more.
1) Charm Pricing:
Studies have shown that prices ending in a 9 sell better. For example: ₹199 vs ₹200.
This is because people read prices from left to right and are "anchored" to the lower price: $100.
70% of Amazon Fresh products end in 9 with treats more likely to end in 9.
2) Anchoring:
Price anchoring is a pricing strategy that plays on buyers' inherent tendency to rely heavily on a piece of initial information to guide subsequent decisions. In the context of pricing, many businesses will set a visible initial price for a product but make a point of showing that it's now being sold at a discount.
3) Innumeracy:
Buy one get one free is more preferred by consumers than buy two get 50% off.
These are the exact same offer, but buy one get one free makes people feel like they are getting more value.
