Even small differences in price can signal product differences. Consider a stereo receiver priced at $300 compared to one priced at $299.99. The actual price difference is only 1 cent, but the psychological difference can be much greater. For example, some consumers will see the $299.99 as a price in the $200 range rather than the $300 range. The $299.99 will more likely be seen as a bargain price, whereas the $300 price suggests more quality. Some psychologists argue that each digit has symbolic and visual qualities that should be considered in pricing. Thus, 8 is round and even and creates a soothing effect, whereas 7 is angular and creates a jarring effect.
Verb vodka will go for the retail price of $24.99 7.5L at your local liquor store for the chocolate and strawberry flavors and $34.99 for the rhino horn flavor. This will put us in the middle of the road as far as competition goes. The price was going to be lower but an executive decision was made to include two condoms thus raising the price $5.00 respectively.
Price says something about the product. For example, many consumers use price to judge quality. A $100 bottle of perfume may contain only $3 worth of scent, but some people are willing to pay the $100 because this price indicates something special.
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