Recently our editor Paul Skeldon interviewed Professor Dr David Loschelder of the Institute of Management, Leuphana University in Leuberg at the Commerce Summit hosted by ePages. They spoke about the psychology of pricing and the Professor has some interesting insights to share.
Did you know that the £9.99 price that subconsciously sounds better than £10.00 wasn’t originally a marketing ruse. The £9.99 price point was designed to prevent employee fraud! The Professor goes on to explain that precise but random prices actually work better than simply knocking off a penny.
The thinking is that by having a seemingly random but very precise price, the retailer must have had a reason which suggests that they’ve added value and costed the product down to the last penny. Watch the video to learn more:
One Response
Leuphana University is located in Luneburg not Leuberg. Great article.