In Response To Cody Crawford

Why do you think psychological pricing is so successful in todays market?

In present day I feel that people fall more for psychological pricing because of the way the economy is. Since we are currently, and slowly, coming out of a recession families and others are looking for ways to spend less but gain the same quality they have been accustomed to their whole lives. Everything is priced so much higher than those prices from the past and this puts a strain on people financially. When people see $4.95 instead of $5.00 they immediately think that they are saving money, even though we know that they are in fact not. However, I feel that people are convinced they're saving because companies have found the trend in people wanted cheaper goods. With companies still trying to gain a profit, one method is to use psychological pricing to trick that of their consumers, and they still maintain their revenue goals. Yes, I find this to be cheating the consumer but it is a good pricing technique for companies to use. However, the consumer should also have enough knowledge to understand what they are about to purchase and that the price is not that much cheaper than they originally think.

Have you ever fallen for a slightly lower price by how it appeared originally?