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A STUDY ON THE EFFECTIVENESS OF PSYCHLOGICAL PRICING IN RETAIL SALES

Lavanya Venkat, Vishnu S, Venkat , Vishnu S

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Abstract

Price is the variable through which the value proposition of brands is monetize , therefore, it is the driver that guarantees the sustainability and profitability of companies. Among different psychological pricing tactics that exist, prices ending in nine are the most accepted and used by practitioners as a strategy to penetrate markets; but this strategy should be carefully revised and applied as it is context dependent and has differential effects among categories and types of brands. Drawing on the importance of psychological pricing the extended use of nine-ending prices and the identified need of a better understanding, this study validates the impact of such prices on the purchasing attitudes of consumers and the differentiated effect on revenue, among various brands and product categories, finding that this tactic significantly affects consumerspurchasing attitudes and brands revenue levels, but to a different extent, depending on the product category, the brand positioning and preference.

Copyright

Copyright © 2025 Lavanya, Venkat, Vishnu S. This is an open access article distributed under the Creative Commons Attribution License.

Paper Details
Paper ID: IJPREMS50700031740
ISSN: 2321-9653
Publisher: ijprems
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