PRICING STRATEGIES IN GLOBAL E-COMMERCE: AN ANALYSIS OF PSYCHOLOGICAL PRICING TACTICS

Abstract

In the rapidly expanding landscape of global e-commerce, pricing strategies have become a critical factor for business success. Among the various techniques, psychological pricing tactics play a pivotal role in influencing consumer behavior and purchasing decisions. This paper explores the significance of psychological pricing strategies in global e-commerce, examining how they can be effectively utilized to increase conversion rates and enhance profitability. We provide a comprehensive analysis of popular psychological pricing methods such as charm pricing, price anchoring, and the use of decoy pricing. Additionally, the study investigates the cultural and geographical factors that influence the effectiveness of these tactics across different markets. Drawing from real-world examples and case studies, this paper aims to offer insights into how e-commerce businesses can tailor their pricing strategies to cater to diverse consumer preferences and drive sustainable growth.