What important factors are taken into account when using the psychological pricing method that are not used in the competitors pricing method?

Answer by  eatwrite (1559)

Things that causes consumers to do impulse buying. There are items that people use to comfort them and try to fill a void in their lives. These items are placed at the check out aisle so when people are standing there waiting to check out, they are tempted to buy them. attractive packaging helps.

Answer by  tamarawilhite (17883)

The cachet or prestige of a brand are often correlated to its price. A luxury item is one deemed upscale - lower its price will lower its prestige and thus decrease demand for it. Raising its price may increase image and thus demand, regardless of the competition's price.