In this complicated economy that we find ourselves in today, within the fierce competition there are intense price battles, battles that often involve the use of strategic planning and a particular pricing strategy, for example, psychological pricing.
All pricing strategies have advantages and disadvantages, likewise, nothing is perfect. Outlined below are some of the main pros and cons of using psychological pricing.
Let’s start with the cons first, shall we? Consider the meaning behind psychological pricing, it aims to play “tricks” on the minds of human beings, tricking us into believing something that is not equivalent to their true self. The single word is perception.
By exploiting psychology, marketers are creating a different perception of something for us, therefore what we think it is, is what we believe. The downside to this is… as a typical consumer who might fall for this pricing strategy, you may just realize that he was duped and therefore will no longer purchase that particular deal.
What can be learned from this is that all pricing strategies need to be carefully planned to avoid crossing the line that can cause side effects.
Another disadvantage of using the concept of psychological pricing is that you are not alone, you are simply not the first to use this tactic in the economy. The fact is that when everyone else in your competition uses the same trick as you, it’s basically communism. The hack will be downgraded because most are doing the exact same thing.
From this, understand that you need to stand out from the crowd and crave some originality in your pricing campaigns, be unique.
Everything in the world has advantages and disadvantages. Using a pricing strategy will not only obviously increase your sales and generate more profit, but it also has other key advantages.
Have you ever been frustrated by the unexpected results of a plan? Any plan? In fact, no plan in the world is error-free, and all plan implementers are often concerned about possible outcomes and unfavorable side effects. However, in the psychology of pricing, minimal attention is required, as such pricing tactics are directed at human beings, and I assume that human beings are the only buyers in the world.
Having said that, there is certainly no area for fault in terms of the use of psychology in pricing, but only the effectiveness and positive results you are getting that require serious efforts and work, in other words, the amount of work determines your rewards. However, the split test is the best option.
