Have you ever wondered why candy and snacks are placed close to market cash registers? or Why the retail prices are often expressed as “odd prices”: a little less than a round number, e.g. $19.99 or £2.98? Read on and you might get a clearer picture.
Decision fatigue refers to the deteriorating quality of decisions made by an individual, after a long session of decision-making. For instance, Decision fatigue may also lead to consumers making poor choices with their purchases.
So in the case of my first question, A shopper would have made few decision by the time he/she approaches cash register. So the whole plan is to trick the consumer into buying something he/she may not need.
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 or Rs. 99. The theory is this drives demand greater than would be expected if consumers were perfectly rational.
In simpler words demands for a product would be higher if it is priced at Rs. 99 rather than Rs. 100.
Product placement is a form of advertisement, where branded goods or services are placed in a context usually devoid of ads, such as movies, music videos, the story line of television shows, or news programs. The product placement is often not disclosed at the time that the good or service is featured.
Seen a lot of these in movies.
It looks like advertisement agencies have got lots of theories on how to sell stuff. Am not very sure how efficient these are. I have seen Decision Fatigue not just in markets but in normal jobs too. I am not really sure whether “Psychological pricing” or “Product placement” are good at attracting people into purchasing things.
Lastly is it fair to trick people into purchasing things?
All the definitions are from wikipedia.