Element / Retail - Psychological Pricing Impact with Round Price Simulator
Psychological Pricing Impact with Round Price Simulator
Problem :
Marketing teams needed insights into how rounded price thresholds (e.g., €1.99 vs. €2.00) impacted sales volume to drive promotion effectiveness.
Solution :
Historical sales data was analyzed over 3 years. Sales volume changes were grouped by round price buckets. Scripts calculated marginal benefit price (MBP) and associated sales shifts.
Outcome :
Marketers could now quantify the impact of round pricing and incorporate these insights into strategic pricing and promotional planning for better margins.