Concept of anchoring and psycological pricing in customer`s decision making process
Concept of anchoring and psycological pricing in customer`s decision making process

Summary/Abstract: This paper is about the anchoring concept and its implementation in creating the psychological prices which could determine the consumer decision making process. As a concept, the anchoring is a process that describes the use of irrelevant information as a reference for evaluating or estimating some unknown value or information or the tendency to rely too heavily on the first piece of information offered (the "anchor") when making decisions. Anchoring or guiding the consumers through the decision making process can be achieve through different marketing practices. One of them is psychological pricing method and its effects that it has on the consumer’s decision making process. Psychological pricing attempts to influence a customer perception to make the product’s price more attractive. There are several methods of psychological pricing in marketing practice i.e. reference pricing, bundle pricing, multiple-unit pricing, everyday low prices, odd-even praising, customary pricing and prestige pricing. Psychological pricing is a marketing practice that is considered to have a psychological influence on the decision making process of the consumer. . The main goal of the paper is to determine the bond among the anchoring effect, achieved through the use of psychological pricing method in the consumer decision making mostly related on monthly incomes. In order to meet the goals, applied research shows the possible link between the anchoring, psychological pricing and the effect on the decision process of consumers segmented by their monthly income.

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