Psychological Pricing

Psychological Pricing

One thing is setting a price - a different matter is how this price is perceived by the customer. Ultimately, this is what matters as to the effect the price will have on sales, and thus this perception needs to be managed.

One of the most important ways of managing price perceptions is by installing appropriate price anchors; that is, pricing other portfolio products so that they provide an optimal benchmark for price comparison. To do this, it is crucial to have a thorough understanding of the willingness to pay for said product, so price anchors can be set accordingly. PriceBeam has extensive experience in analyzing customer price perceptions, and help companies optimize the perceived price. In particular, we help companies set prices that send the right signals in terms of conveying an appropriate message of quality that is aligned with the company’s brand positioning.