​Because typography is a key element of most designs, the choice of font is one of the most important decisions a designer can make: it can make or break both the design and the user experience.

 

It is therefore vital that the designer understands the psychology of certain fonts over others. Choosing one that reflects and communicates the 'personality' and attributes of the brand or business is essential in eliciting the desired behavioural response of the viewer.

​

4. Pricing

 

Psychological pricing, a subset of pricing strategies, comprises tactics commonly used to impact customer behaviour.

 

Research has shown that certain ways of formatting prices can spark a subconscious response from a customer and encourage a purchase. Psychological pricing is part of this wider pricing strategy. It is a strategy in itself with numerous tactics that are designed to appeal to a customer’s emotional, rather than rational, response to prices.

 

Because they are inexpensive and easy to implement, many businesses across numerous industries use at least one psychological pricing tactic when creating or adjusting their pricing. 

 

There are several persuasive pricing techniques that you can used in web design to boost the sales conversion rate of a business, especially if used in an e-commerce website.  

 

1. The Rule Of Nine

 

Also known as 'charm pricing', this refers to the use of prices ending in the number nine because of 'left-digit bias', a phenomenon in which consumers’ perceptions and evaluations are disproportionately influenced by the left-most digit of the product price.

 

Since people read from left to right, they are more likely to register the first number and make an immediate conclusion as to whether the price is reasonable. So, to increase purchases of products and services, companies convert zero-ending numbers to nines.

​

2. Price Anchoring

​

Price anchoring is a strategy that plays on a buyer's inherent tendency to rely heavily on a piece of initial information to guide subsequent decisions. Anchoring establishes a base price as an anchor against which to compare a lower or higher-priced item.

 

In the context of pricing, many businesses will set a visible initial price for a product but make a point of showing that it is now being sold at a discount.

​

3. Price Differentiation

​

When consumers face two or more similar products that they perceive to be similarly priced, they are more likely not to purchase either product due to 'choice overload'; that is, the decision-making process becomes so complex that the decision is eventually deferred or dropped.

 

Consumers punish similarity, they are risk-averse and fear spending money on the wrong, less favourable, option. By introducing a small price increase, thus creating a price differential, then choice overload on the consumer is reduced or eliminated.

​

4. Bundling

​

Price bundling (product bundling or product-bundle pricing) is a strategy that combines two or more products to sell them at a lower price than if the same products were sold individually. The bundle pricing technique is popular in retail and e-commerce as it offers more value for the one price.

​

5. Decoy Pricing

​

The decoy pricing tactic is based on the 'decoy effect', by which individuals tend to have a specific change in preference between two options when also presented with a third option that is inferior in every way except one. The presence of the 'inferior' third option makes the first two seem more attractive.

 

The third option is inferior, making it asymetrically dominated by the other two options. This decoy is designed to make one of the other two options appear to be the better choice.

 

The goal is not to sell the decoy item, but to use decoy pricing to steer customers to buy the more profitable product.

​

6. Reframing The Value

​

In raising prices it is important to reframe the product in a way that gives a legitimate reason behind the price increase. It is about the bundle offering and how that is communicated, by either changing its features, or size, or some other aspect, in such a way that demonstrates the benefits to the customer, without specific reference to the increased price.

​

7. Changing Price Font Size 

​

When a consumer sees a price they instantly evaluate that price based on a range of subconscious triggers which determines whether the price is perceived to be high or low. This is the consumer's reference price which is the price that they would expect to pay for that item.

 

The aim of pricing psychology is to subconsciously influence the consumer into believing that the offered price is lower than their reference price, without actually lowering the item price. This can be achieved by displaying an item price with a small font.

 

The brain has a universal concept of size with an unconscious overlap of visual and numerical size. If the price is visually large it will be perceived as numerically large. This perception can be changed by displaying an item price in a smaller font size.

​

Research has found that consumers perceive sale prices to be a better value when the price is written in a small font rather than a large, bold typeface.

​

Summary - Pricing

​

It is estimated that 95% of purchasing decisions are based in the subconscious mind.

 

By using psychological pricing methods to tap into those subconscious behaviours, patterns, and biases, it is possble to streamline and enhance the purchasing experience of customers.

 

Almost every psychological pricing method is centred around the process of creating the impression of a 'good deal', and by leveraging these methods, a business can sell at price points that put customers at ease. These methods are also an effective way for companies to attract and retain that custom in a highly competitive marketplace.

​

Takeaway

 

Websites must establish trust and present themselves as credible in order to convert visitors into customers. In applying proven psychological techniques in web design the objective is to create a site that enables users to achieve their goals through design decisions that appeal to them. If this is fulfilled then a business should be able to increase conversions, expand revenue channels, and hold down churn rates, and gain a competitive advantage in their marketplace.

​