I love the Neuromarketing blog. It always gives great examples, and well documented article. This time, they wrote a great article about how to set up your prices.
Rather than discussing about the whole pricing stategy, based on items such as competition, margins, among others; it gives you a great advice on how to set your pricetag in order to boost sales, beyond the infamous $99,99 pricetag.
What the researchers found was that the way the price was expressed “felt right” if it matched the way customers were thinking about the purchase. Rounded prices, like $100, matched purchasing decisions that were driven by emotion. Non-rounded prices, on the other hand, felt better when the purchase decision was a logical evaluation process (cognition).
Hence, the the strategy will change also depending on the decision making process of one customer. Here are clear charts to explain you how to get your pricing right.
What the researchers found was that the way the price was expressed “felt right” if it matched the way customers were thinking about the purchase. Rounded prices, like $100, matched purchasing decisions that were driven by emotion. Non-rounded prices, on the other hand, felt better when the purchase decision was a logical evaluation process (cognition).
Hence, the the strategy will change also depending on the decision making process of one customer. Here are clear charts to explain you how to get your pricing right.
Obviously, the best is to visit the article, which is well detailed and well explained. But I hope it helps you out to see how working on pricing can have clear and fast benefits.
