Psychological Pricing

Pricing strategies that leverage human psychology to make prices feel smaller or more attractive, charm pricing (£9.99 vs £10), decoy pricing, and prestige pricing.

Price perception drives purchase decisions as much as the number itself. Strategic psychological pricing can increase conversion without changing the actual value delivered.

£97 feels meaningfully cheaper than £100 to most buyers despite being only 3% less. £997 vs £1,000 has the same effect. Premium brands do the opposite, £100 exactly signals confidence and luxury.