Have you ever evaluated your product price using the Psychology of Pricing? Do you know about the power of number 9 in psychological
pricing that is the key to attract customers in the product price at first sight?
What is the Psychology of Pricing?
Price is one of the factors that affect purchasing or not a product of customers. You can change the customer’s behavior by the price. It’s true, the customers tend to compare the price of products when they buy a product, with the same product that sales at a lower price, they tend to buy it more. Taking advantage of the price feature you should modify the product price to make a more charming price to customers.
There are some concepts and ideas of Psychology of Pricing:
- According to Adaval and Monroe (2002)
“…price information about a product is unlikely to be coded into memory in terms of exact numerical digits but, rather, is coded spontaneously in more general magnitude terms (e.g., ‘low,’ ‘high’). Thus the numerical price is susceptible to the influence of its original context when people attempt to reconstruct it later.” (pp. 585)
- According to Thomas and Morwitz (2005):
“…while evaluating “2.99,” the magnitude encoding process starts as soon as our eyes encounter the digit “2.” Consequently, the encoded magnitude of $2.99 gets anchored on the leftmost digit (i.e., $2) and becomes significantly lower than the encoded magnitude of $3.00” (pp. 55).
- From Wikipedia:
Psychological pricing (also price ending, charm pricing) is a pricing and marketing strategy based on the theory that certain prices have a psychological impact. Retail prices are often expressed as “odd prices”: a little less than a round number, e.g. $19.99 or £2.98. There is evidence that consumers tend to perceive “odd prices” as being lower than they actually are, tending to round to the next lowest monetary unit. Thus, prices such as $1.99 are associated with spending $1 rather than $2. The theory that drives this is that lower pricing such as this institutes greater demand than if consumers were perfectly rational. Psychological pricing is one cause of price points.
The power of number 9 in impressing your customers about the product price at first sight.
In the past few years, the product price of many products tends to end up with something like .9, .99 or.9x. That’s not a random why marketers make their product price with number 9 in the tails. All have its reason and a researcher had released his proof about a remarkable change in conversion when set product price with number 9 end.
As you can see in the result of Gumroad’s research, the number of people who viewed products over the number of people who bought them of every item available on Gumroad in whole dollar prices with every item available on Gumroad with prices at one cent less. When he reduces integer part a digit by one, and the fraction part ends up with .9x in the product price. The conversion rate of prices ending in .99 has higher conversion rates than prices ending in one cent higher. In one case, the conversion rate is twice as high. When you sell with one cent lower $3.99 instead of $4 that would make a huge difference. So the lesson about pricing techniques that will make your price seems lower without reducing the actual price.
How can WooCommerce Multi Currency help you display the product price using the power of number 9?
What is WooCommerce Multi Currency plugin?
If you have an online store, WooCommerce Multi Currency is a must-have plugin. This plugin allows your customers to switch between currencies on your website. It helps your store accept payments in multi-currency, set up exchange rates manually or automatically. The plugin can automatically get customer’s geolocation and display the price in the customers’ native currency.
Using the price format option of the WooCommerce Multi Currency plugin to customize the product price.
Be aware of the customer’s behavior purchasing products, WooCommerce Multi Currency has integrated the price format option.
This option allows shop owners to modify the output product price more charmingly. The price option works based on transferring the integer and fraction parts of the output price. When customers visit your website, they switch the price to different currencies. Meanwhile, the plugin does its function converting the price and beatify the price as you set in the backend.
As you can see, the Armchair costs $199,99 that will convert to £182.41. You would like to make this armchair at a more charming price in GPB currency. With a couple of steps in the price format setting in WooCommerce Multi Currency, you are able to convert the Armchair price at £182.99. It is a far more attractive price than the initial conversion, isn’t it?
Psychology of Pricing is no longer a new technique. However, you may surprise with a little change in price that can contribute a remarkable number increase in your revenue. Let WooCommerce Multi Currency plugin help you make the differences with this charming price technique.