ose a new toothpaste is released in market, it often sells better when its accompanied by a free sample, a toothbrush or even 25% extra toothpaste. And more so when the actual price is quoted and struck off, with a new pricing quoted in a different color alongside to attract the consumer. Often in these cases the consumer has this inherent feeling that he is getting more for a lesser price. Sometimes he also compares another similar priced similar product with the one available on discount to satisfy himself that he is certainly gettingPricing is one of the four major components of marketing. Psychological pricing forms one of the key elements of demand pricing wherein the consumer demand is the main focus. The price and quality relationship that governs the central theme of the consumer market relationship is surrounded by uncertainty and gives the consumer the perception that higher the price, better the quality.

The science of pricing is an art in itself. Rounding off the figures may be good for basic math but never in business. The art of setting prices for articles has been an ever challenging task in business. Keeping in mind the changing economy, heavy competition in the market and consumer affordability, the trick of pricing an article has been more on a psychological evaluation of the consumer. Pricing is usually done by keeping with industry standards. But in order to sell their products after a baseline or whole sale price has been fixed, individual business organizations have most often dealt with pricing in terms of smaller denominations such as cents and pennies.

While quoting the universal example of $9.95 or 9.99 being more attractive to consumers as compared to $10, this psychology seems to hold in business world wide. The main reason for this is that people tend to see the first figure in dollars as compared to the cents. $9 is cheaper than $10, and the cents don't figure in the perception. While shopping, consumers tend to overlook small differences in cents but go by the dollar value. And funnily, the highest single odd digit is the most psychologically favored and 9 is that most fortunate figure of acceptance. However one cannot rule out the fact that the cents are totally ignored by the customer but the ignorance is at the subconscious level and is partial. Also the use of odd figures has a background in that it was used to curb theft by employees by way of forcing them to give change and enter the amount in the cash register a practice that was originally put forth way back in 1875 by the publisher of Chicago daily news, Melville E. Stone.

Another most popular way of attracting consumers has been introductory offers. Suppose a new toothpaste is released in market, it often sells better when its accompanied by a free sample, a toothbrush or even 25% extra toothpaste. And more so when the actual price is quoted and struck off, with a new pricing quoted in a different color alongside to attract the consumer. Often in these cases the consumer has this inherent feeling that he is getting more for a lesser price. Sometimes he also compares another similar priced similar product with the one available on discount to satisfy himself that he is certainly getting

articles has been an ever challenging task in business. Keeping in mind the changing economy, heavy competition in the market and consumer affordability, the trick of pricing an article has been more on a psychological evaluation of the consumer. Pricing is usually done by keeping with industry standards. But in order to sell their products after a baseline or whole sale price has been fixed, individual business organizations have most often dealt with pricing in terms of smaller denominations such as cents and pennies.

While quoting the universal example of $9.95 or 9.99 being more attractive to consumers as compared to $10, this psychology seems to hold in business world wide. The main reason for this is that people tend to see the first figure in dollars as compared to the cents. $9 is cheaper than $10, and the cents don't figure in the perception. While shopping, consumers tend to overlook small differences in cents but go by the dollar value. And funnily, the highest single odd digit is the most psychologically favored and 9 is that most fortunate figure of acceptance. However one cannot rule out the fact that the cents are totally ignored by the customer but the ignorance is at the subconscious level and is partial. Also the use of odd figures has a background in that it was used to curb theft by employees by way of forcing them to give change and enter the amount in the cash register a practice that was originally put forth way back in 1875 by the publisher of Chicago daily news, Melville E. Stone.

Another most popular way of attracting consumers has been introductory offers. Suppose a new toothpaste is released in market, it often sells better when its accompanied by a free sample, a toothbrush or even 25% extra toothpaste. And more so when the actual price is quoted and struck off, with a new pricing quoted in a different color alongside to attract the consumer. Often in these cases the consumer has this inherent feeling that he is getting more for a lesser price. Sometimes he also compares another similar priced similar product with the one available on discount to satisfy himself that he is certainly getting

ing the universal example of $9.95 or 9.99 being more attractive to consumers as compared to $10, this psychology seems to hold in business world wide. The main reason for this is that people tend to see the first figure in dollars as compared to the cents. $9 is cheaper than $10, and the cents don't figure in the perception. While shopping, consumers tend to overlook small differences in cents but go by the dollar value. And funnily, the highest single odd digit is the most psychologically favored and 9 is that most fortunate figure of acceptance. However one cannot rule out the fact that the cents are totally ignored by the customer but the ignorance is at the subconscious level and is partial. Also the use of odd figures has a background in that it was used to curb theft by employees by way of forcing them to give change and enter the amount in the cash register a practice that was originally put forth way back in 1875 by the publisher of Chicago daily news, Melville E. Stone.

Another most popular way of attracting consumers has been introductory offers. Suppose a new toothpaste is released in market, it often sells better when its accompanied by a free sample, a toothbrush or even 25% extra toothpaste. And more so when the actual price is quoted and struck off, with a new pricing quoted in a different color alongside to attract the consumer. Often in these cases the consumer has this inherent feeling that he is getting more for a lesser price. Sometimes he also compares another similar priced similar product with the one available on discount to satisfy himself that he is certainly getting

acceptance. However one cannot rule out the fact that the cents are totally ignored by the customer but the ignorance is at the subconscious level and is partial. Also the use of odd figures has a background in that it was used to curb theft by employees by way of forcing them to give change and enter the amount in the cash register a practice that was originally put forth way back in 1875 by the publisher of Chicago daily news, Melville E. Stone.

Another most popular way of attracting consumers has been introductory offers. Suppose a new toothpaste is released in market, it often sells better when its accompanied by a free sample, a toothbrush or even 25% extra toothpaste. And more so when the actual price is quoted and struck off, with a new pricing quoted in a different color alongside to attract the consumer. Often in these cases the consumer has this inherent feeling that he is getting more for a lesser price. Sometimes he also compares another similar priced similar product with the one available on discount to satisfy himself that he is certainly getting

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