You walk into a store and you instantly fall in love with the price? or the product? is it price at first sight? Consider the many blinding occasions that you have experienced a greater than usual excitement and emphasis towards pricing and discounts. Here’s a reminder:
Did that get you excited? No? How about the second one which came to my email today and seemed to have worked because my wife rang me straight away, I then asked her what were you looking for, the response, “I don’t know, was just cool to see they having a big sale” I immediately thought that my wife had fallen victim to a marketing trick called psychological pricing. I could be making this all up but you get the idea (except this doesn’t work too well on women’s shoes for some reason as they don’t seem to care about prices). Okay moving on..here’s a discussion on some mind benders;
Artificial Time Constraints – You’ve seen the adverts, a one day only sale! and it does something to consumers to think ah, I only have one day to buy. Customers are afraid of missing out of a sale and losing it to their best friend. Rug’s a Million?
Charm pricing – Well I’m charmed. 9’s at the end of the price increases consumer demand. Really? well look at this one and tell me which one is more attractive? $2.00 or $1.99? Why it’s $1.99 of course, that extra 1 cent is the most valuable saving you’ve had this year. Of course this needs to swing in both directions. If you are buying something really expensive like a gold ring for your mistress.. I mean wife do you really want her to see you buying it for $5999.99 or $6000 or even $6k, something like $5999.99 may tell her that you are cheap and after a deal breaker. This also goes into the appearance of the price as longer prices appear to be worth more than shorter ones.
Innumeracy – Which do you think is a better deal? Buy one get one free or 50% off two items? I am pretty sure it amounts to the same thing?
The main thing is to be aware of marketing tactics and not fall victim to them but that would also mean we would be putting marriage counselors out of business and fall down in social popularity. I can just hear my daughter saying “But Alice has one and I don’t”
Have you experienced price imprints? Do you know a good deal when you see one? Is 99c better than $1.00? or are you null and void to the effects of price Psychology?