Companies selling luxury products price them at amounts such as $30, $50, and $100, while those selling bargain items may price items at $29.99, 13.99 and 19.99. What psychological pricing strategy is being used?
The psychological pricing strategy being used in this scenario is known as the charm pricing strategy. This strategy involves pricing products just below a round number, typically ending in .99 or .95, to make the price appear lower and more attractive to customers.
