Psychological Pricing

Pronunciation: saɪkəˈlɒʤɪkəl ˈpraɪsɪŋ Meaning: Psychological pricing is a pricing strategy based on the psychological impact of certain prices. To define psychological pricing, most folks rely on the classic example that $2.99 is more attractive to consumers than $3.00. Example: The best way to attract customers to buy certain products is by using psychological pricing - in that case, customers feel as if they spent more money than they actually would.