Answer to Question #312181 in Marketing for Mohd Danish

Question

Sam has created a clothing line that sells at a local boutique. Short-sleeved shirts are 

$40, sweaters are $60, hats are $20, and accessories such as socks are $15. Give Sam two 

psychological strategies to use to improve his pricing and hopefully increase product 

sales. Explain your answer.

Answer 1

Instead of quoting a rounded-off values like $40, $20, $15, it is better to make use of psychological pricing tactics like ODD-EVEN PRICING and mark them as $19.99, $39, $14.99 to make it look more affordable. Also, Sam can explore exploiting the REFERENCE PRICING option to lure the customers well to prefer his brands as the most affordable in the market.

The low prices and the perceptive image of selling the things at more affordable price will bring in a lot of customer visits and will help him in garner huge sales through that increased footfall.