138 Principles of Marketing
applying psychological pricing is ‘odd’ pricing, where, for example, even though the difference
between ` 999 and ` 1,000 is very small, ` 999 is psychologically considered much lower than
` 1,000 as the former is a three-digit price and the latter is a four-digit price. Bata practices this
type of psychological pricing for its shoes.
• Infl uence of promotion: The fi nal price must also consider the brands’ quality and the cost of
advertising. Brands having average quality can charge a premium as customers are willing to
purchase a known brand rather than an unknown one. Brands having high quality supported by
high advertising obtain highest price and vice versa.
• Company’s pricing policy: The price ...