Influence of Psychological Pricing on Online Consumer Purchase Decisions – A Study of Nykaa

The growth of e-commerce has significantly changed the way consumers search for and purchase products. In the digital marketplace, pricing strategies play an important role in influencing consumer perception and purchasing decisions. One of the most widely used approaches in marketing is psychological pricing, where prices are designed to influence how consumers perceive value rather than simply reflecting production costs. This research paper examines how psychological pricing strategies influence online consumer purchasing behaviour, with a focus on Nykaa, a major beauty and personal care e-commerce platform in India. The study explores different pricing strategies used by the platform, including charm pricing, promotional discounts, bundle offers, and limited-time sales events. The research is based on secondary data collected from academic literature, marketing textbooks, industry publications, and company information. The analysis suggests that psychological pricing strategies significantly influence consumer perception by creating a sense of affordability, urgency, and value. Techniques such as prices ending in “9”, visible discount displays, and time-limited offers encourage consumers to make quicker purchase decisions. The study concludes that psychological pricing plays an important role in increasing customer engagement and sales in online retail platforms. Strategic pricing, when combined with digital marketing and promotional campaigns, can help businesses gain a competitive advantage in the e-commerce market.