methods of psychological pricing

1. What is Psychological Pricing?
Psychological Pricing is a pricing and marketing strategy based on the
theory that certain prices have a psychological impact on consumer than
others.

2. 5 Strategies of Psychological pricing:
1. Charm pricing
Reduce the left digits by one.
2. Prestige pricing strategy
3. BOGOF( Buy one get one free)
4. Comparative pricing
5. Visually highlight the different prices

3. True Economic Costs:
There are several effects that are often discussed with respect to human
psychology and can be properly placed within the context of a rational decision
maker making an economic decision.
 Shared cost effect
Switching costs
Expenditure effect
Difficult Comparison Effect

4. FINANCIAL PLAN
 Sources of fund :
Capital Lac (taka)
Own Invest - (500000*7) = 3500000
Loan Invest - = 1500000
Total - = 5000000

5. SOUTH BENGAL AGRO FARM
CASH FLOW STATEMENT
Particulars Amount (taka) Lac
1. Net cash flow from operation -----------------------------------
2. Net cash flow from investing activities -----------------------
3. Net cash flow from financing activities -----------------------
2000000
1500000
1500000
4. Cash at end of period --------------------------------------------- 5000000

6. SOUTH BENGAL AGRO FARM
BALANCE SHEET
Liabilities & Owner’s Equity Amount
(taka) Lac
Assets Amount
(taka) Lac
Account payable
Total short term debt
Total long term debt
Total liabilities
Capital (Including net income)
Total liabilities & owner’s equity-
1000000
500000
500000
200000
2100000
4100000
Cash
Account receivable
Inventory
Bank balance
Total short term assets
Total long term assets
Total assets -
500000
200000
400000
500000
1600000
2500000
4100000