In order to determine whether pricing strategies are good or bad, we first need to determine what they are
“involves systematizing, defending, and recommending concepts of right and wrong behavior”
What makes something unethical?:
Actions that are against social norms or acts that are considered unacceptable to the public
So in order for psychological pricing to be unethical, it must violate both of these rules. Let’s dive a bit deeper, shall we?
The advantages of pricing strategies are endless
It has been scientifically proven that certain pricing strategies can
- Higher margins
As a society we have become accustomed to the idea of businesses using our psychology against us. It’s to a point that when a business doesn’t do it, then it catches our eyes.
So using psychology to determine a companies price is definitely normal in our society … For now.
The disadvantages or pricing strategy are small but are there..
Some customers thing using psychology to persuade customers to buy is unethical. While they may/may not be right. Very few of your customers will have this belief, and if they do odds are they won’t even recognize it.
While we know psychological pricing works like magic, when overdone, it can come off as cheesy and malicious. As most customers know businesses use tactics to get you to buy. When overdone/overt you will steer potential customers away
The list of disadvantages are small, but not to be ignored. We highly suggest you use your best discretion…
While some people may be torn about the ethics of pricing strategies, it’s more cases than not it will be beneficial for you and your company to strategically price your goods or services. As not doing so can result in a loss of sales
While pricing strategies are proven to work, they are not some magical cure to boost sales. Think of this as sprinkles on a cake. You’re not gonna go to the store and buy a sprinkle cake…