Talk:Psychological pricing/Archives/2013
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Re-organization
I can see this page succeeding more with some updated organization. I am interested in putting together a new layout for the page. Do you agree that this would be helpful? Laurenshaber (talk) 19:51, 29 January 2013 (UTC)Lauren Shaber
Introduction
Psychological pricing or price ending is a marketing practice based on the theory that certain prices have a psychological impact. The retail prices are often expressed as "odd prices": a little less than a round number, e.g. $19.99 or £2.98. Consumers tend to perceive “odd prices” as being significantly lower than they actually are, tending to round to the next lowest monetary unit. Thus, prices such as $1.99 is associated with spending $1 rather than $2.[1] 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.Laurenshaber (talk) 21:58, 12 February 2013 (UTC)Lauren Shaber
Benford's Law
most prices end in a 9. Benford’s law says that this should be the opposite due to the the relative frequency of a specific digit a in the first place of a number is Fa = log10[(a + 1)/a] The digit 1 occurs with a relative frequency of about .30, the digit 2 with a relative frequency of about .18, and the digit 9 finally with about .05. [2] Laurenshaber (talk) 22:02, 4 March 2013 (UTC)Lauren Shaber
- ^ http://www.sciencedirect.com/science/article/pii/S0167487098000063.
{{cite web}}: Missing or empty|title=(help) - ^ http://www.sciencedirect.com/science/article/pii/S0167811605000522.
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