Posts Tagged "customer serivice"

How Consumers Think About Pricing

Posted by on Apr 10, 2015 in Blog

How Consumers Think About Pricing

They are a funny thing, numbers. Often thought to be unemotional, when attached to a dollar sign, the opposite is closer to the truth. When it comes to pricing goods and services, market experts have a lot to say about how numbers connect to consumers’ feelings, and how they think about pricing as a result. A study by researchers in the US found that consumers are more drawn to rounded numbers ($100 even) when making ‘fun’ purchases, for gifts, holidays or recreational purposes, but were more drawn to odd numbers (say, $97.56) if the purchase was for a functional, professional or serious purpose. For example, someone picking up a bottle of wine to take to a friend’s place might choose the $30 one, thinking $30 exactly must be some kind of sale. Someone catering a business lunch might be more inclined to buy the $32.75 bottle, figuring that to be a ‘proper’ price. Deals on many items, or deals available all the time, like in a discount store setting, are seen as less valuable to consumers than less frequent sales such as those specialty stores conduct. It is also important to note that comparisons to the competition in your...

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