Which pricing strategy is aimed at making customers believe they are getting a good deal?

Psychological pricing is a strategy that leverages the customer's perceptions to influence their purchasing behavior. By setting prices at strategically chosen points, such as just below a round number (e.g., pricing an item at $9.99 instead of $10.00), businesses create the impression that customers are getting a better deal. This approach taps into the consumer's mental and emotional responses, making them feel that they are saving money or receiving more value.

In contrast, competitor pricing focuses on setting prices based on what competitors are charging, which may not necessarily create a perception of value. Premium pricing sets higher prices to indicate quality but doesn't foster a sense of getting a good deal. Promotional pricing offers temporary discounts to boost sales but doesn't consistently maintain the perception of value in the long term. Thus, psychological pricing is uniquely effective at fostering the impression of savings and value without directly discounting the price.