Source: http://www.glasbergen.com/
This is an example of psychological pricing. The perception of this pricing is not reality based, but psychologically based. The higher the price, the more likely customers are to perceive it has being higher quality product, compared to a lower priced product. Although there is point at which customers will question the value of the product if the price is too high. In fact, the less a customer knows about a product the more likely they are to judge the product as being of higher quality based on only knowing the price.
2 comments:
A good example of psychological pricing may be of books. Books being sold in elaborately decorated stores are priced higher than books being sold on streets in Anarkali.
ya it is the psyco of customers that whenever they go to buy something they prefer that thing which was expensive because they thought that was really good in quality..
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