The impact of psychological pricing strategy on consumers' buying behaviour: a qualitative study

Abstract

The recognition of consumers' behaviour is crucial for effective marketing plans. Evidences explain that the psychological pricing communicates meaning to consumers. This study theoretically examines the impact of psychological pricing on consumers' buying behaviour. The study has used secondary data from research papers, monographs, theses, popular articles, and newspapers. Findings show that socio demographic factors like age, income, education, gender, lifestyle, family size, reference groups, social roles and status and the psychological patterns like representativeness, availability of products and the anchoring heuristics are key factors which influence consumers' buying behaviour. Additionally, the consumers, who are more price cognisant are more probable to select nine-ending prices. Indeed, low involved customers, those with a small hedonic and symbolic attachment profile, low educated, low income and younger customers are prone to select the nine-ending priced products and services. The findings can have implications for retailers, pricing managers, researchers, academicians, society and government.