Effect of Psychological Pricing of Goods on Consumers’ Perception: Shoprite as a Case Study

Psychological pricing has been used by marketers over the years to manipulate buying behavior of consumers. Marketers often use psychological policy in pricing products or services. In fact knowledge on the perception of consumers on psychological pricing can help marketers in framing vital marketing policies in terms of marketing communication and distribution. Hence the need to know the perception of consumers on psychological pricing of goods. <br><br>The way a product price ends has an impact on the market. It is an important pricing policy that has been used by retailers over the years. The fashion seems to be useful considering how consumers respond especially to products with odd price endings or fractional endings. Since the matter is subjective that operates at the cognitive level, it is essential to understand the psychological impact of price ending on consumers, using the theory of perception. Psychological pricing has been used by marketers over the years to manipulate buying behaviour of consumers. Marketers often use psychological policy in pricing their product or service; sometimes unintentionally. Psychological pricing is the way of structuring and presenting prices to stimulate consumers’ emotions and to influence the process in making decision (Pride and Ferrell, 1997). Practice of a pricing policy does not deal with only figures but an effort is made to play on the perception of consumers as well Psychological pricing has been used by marketers over the years to manipulate buying behavior of consumers. Marketers often use psychological policy in pricing products or services. In fact knowledge on the perception of consumers on psychological pricing can help marketers in framing vital marketing policies in terms of marketing communication and distribution. Hence the need to know the perception of consumers on psychological pricing of goods. This study is conducted with an objective of studying the overall consumer perception on psychological pricing of goods. The waya product price ends has an impact on the market. It is an important pricing policy that has been used by retailers over the years. The fashion seems to be useful considering how consumers respond especially to products with odd price endings or fractional endings. Since the matter is subjective that operates at the cognitive level, it is essential to understand the psychological impact of price ending on consumers, using the theory of perception. Psychological pricing has been used by marketers over the years to manipulate buying behaviour of consumers. Marketers often use psychological policy in pricing their product or service; sometimes unintentionally. Psychological pricing is the way of structuring and presenting prices to stimulate consumers’ emotions and to influence the process in making decision (Pride and Ferrell, 1997). Practice of a pricing policy does not deal with only figures but an effort is made to play on the perception of consumers as well. People process numbers differently, and they may never know what is in their minds when they consider prices and how this affects their behavior. From the environment of conventional economic theory it is a notion that markets are efficient and participants are deemed to be rational. However, differences in the behavior of the consumers can be seen and sometimes even illogically when presented with a variety of stimuli. Therefore it is important to appreciate and acknowledge that perception has a larger role to play in customers’ purchasing decisions.