There is a general rule in pricing. Precise prices sell better than around prices. For example, 3986 sells better than 4599 sells better than six. However, there are specifics with hedonistic goods and services produced the goods are consumed for luxury purposes, which are desirable objects that allow the consumer to feel pleasure, enjoyment, and fan from purchasing the product or service. In this example, we are having a bottle of high quality wine on the calculator with scientific formulas. Please write down which price will fill the wind better.

Now, write down which price will say the calculator better. The prices could be the same or different. Although next slide, I will show you the results from a scientific research. Please pause the video and write down your suggestions. Whenever ready, continue the video. The research found that the hedonistic good wine sells much better when priced at $40 which is the rounded price.

You can see how much bigger is a very pure threat color represents the photo Price, the blue cow, the 3986 price. With the calculator, the things go the other way around. The 3986 price sells much better than $40. The calculated is an utilitarian good or normal growth. On this slide, we could notice that the effect upon sales of the appropriate pricing tactic is much greater with the hedonistic good with the wine. With hedonistic goods, unsuccessful pricing experiments are more costly as most likely we are in the business with utility On goods, we could shoot experiment more bravely.

So the main specific with hedonistic goods on services in pricing is that around number prices sell better than adjusted prices.