How to Boost Retail Sales With Psychological Pricing

Apple’s strategy is effective for three different reasons. First, shoppers with a lower budget will be steered toward the cheaper option to get the product they want at a price they can afford. Second, the price of the cheapest option is validated by the fact that there are more expensive versions available. Third, shoppers will be able to see the value of the higher-priced versions, as they come with more memory or other capabilities for a relatively low additional cost.