PSYCHOLOGICAL PRICING AND CONSUMER BEHAVIOR: A REVIEW OF ITS IMPACT ON PURCHASE DECISIONS AND SALES PERFORMANCE

This study reviews how psychological pricing influences consumer purchase decisions and sales performance. It examines strategies such as charm pricing, anchoring, reference pricing, framing, prestige pricing, bundle pricing, and discounts. The study finds that consumers often respond more to perceived value than actual price, making price presentation important in shaping affordability, urgency, brand image, and willingness to buy. It also highlights that psychological pricing can increase sales and engagement, but its effectiveness depends on product type, target audience, and ethical use.