Which pricing strategy aims to create a perception of value to the customer?

Psychological pricing is a strategy that focuses on influencing consumer perception and behavior, rather than solely on the actual cost of the product or service. This approach often involves setting prices in a way that makes them appear more attractive to potential customers. For instance, pricing a menu item at $9.99 instead of $10.00 can create a psychological impact, as customers may perceive the former as significantly cheaper, even if the difference is minimal.

By appealing to emotions, perceptions, and cognitive biases, psychological pricing can effectively shape customer attitudes toward value. The strategy aims to enhance the perceived value of offerings, encouraging customers to make purchases by playing on their psychological triggers, such as bargain pricing or perceived exclusivity.

Other strategies, such as cost-plus pricing, primarily focus on covering costs and ensuring a set profit margin without considering how customers perceive value. Penetration pricing may aim to rapidly gain market share by offering lower prices, while dynamic pricing adjusts prices based on demand fluctuations, none of which specifically focus on the perception of value in the same way that psychological pricing does.