PRICING TACTICS AND CONSUMER BEHAVIOUR: EVALUATING THE PSYCHOLOGICAL EFFECTS OF CHARM PRICING IN RETAIL STORES

This research explores the impact of charm pricing strategies such as prices ending in .99 or .95, and bundled product offers on consumer perception and spending behavior in retail environments. By examining psychological cues and behavioral responses associated with these pricing patterns, the study aims to uncover the subconscious factors influencing purchase decisions. A mixed-methods approach, incorporating survey data and in-store observations from retail outlets in Mumbai, reveals a consistent link between charm pricing and increased consumer willingness to buy. The findings contribute to retail marketing strategies by highlighting how minor pricing nuances can significantly shape consumer psychology. Keywords: Charm pricing, psychological pricing, consumer behavior, bundle pricing, retail marketing, Mumbai, price perception