Numbers can have a powerful impact on how a customer interacts with your business
For millennia, people have sought to discover the hidden patterns of the Universe, from the stars above to the numbers that define our lives. Numerology is the study of the relationship between numbers and our lives and has become a critical consideration in developing successful pricing strategies.
When it comes to setting a price, many businesses focus on market research, competitive advantages, and customer feedback. However, an often overlooked, yet potentially game-changing, factor in pricing strategy is numerology. In the right hands, numerology can be used to better understand the emotional and symbolic associations which customers make with different price points (Costa, 2020).
This emotional connection to numbers can have a powerful impact on how a customer interacts with your business. For example, a study by the University of Kansas concluded that discounts expressed in numerical terms produce significantly more profit than simply writing them as a percentage or dollar amount (Chu & Wu, 2012). Additionally, another study found that customers value prices ending in ‘9’ more than prices ending in ‘0’. This concept is known as ‘the left-digit effect’ (Tversky & Simonson, 1993).
In addition to the psychological effects of different numerical prices, numerology can also give insights into the spiritual meanings behind numbers (Tutton, 2018). For example, the number ‘seven’ is often associated with completion, success, and luck. Understanding the numerology behind different price points can help increase the perception of value and appeal to those customers who subscribe to the spiritual significance of numbers.
The fact remains that, while the science of numerology must be taken in context and cannot guarantee success with your pricing strategies, understanding the deeper associations which customers make with numbers can be incredibly beneficial. When paired with traditional pricing techniques, numerology can be a powerful tool to ensure your business is as successful as possible.
References
Chu, S., & Wu, M. (2012). Numerical price discounts: An examination in field and lab experiments. Review of Marketing Research, 9(1), 29-60.
Costa, T. (2020). Numerology for Business: An introduction to pricing strategy. Business Devils. https://www.businessdevils.com/business/numerology-for-business-pricing-strategy/
Tutton, D. (2018). The power of numerology. BBC Science Focus Magazine. https://www.sciencefocus.com/the-human-body/the-power-of-numerology/
Tversky. A., Simonson, I. (1993). Context-dependent preferences. Management Science, 39(10), 1179-1189.