Why end prices with .99 instead of rounding them to the nearest whole number? And does this represent a 1 penny discount or a 99 cent price increase? Customers view certain ranges of prices as the same, often with arbitrary transition boundaries. Sellers try to target the upper end of the range. In “99-cent pricing hooks shoppers,” the Pittsburgh Post Gazette takes a look at rounding.
3 Comments
Anonymous
Hi, I was wondering where I could get more info on these kind of “pricing tips”.
Thanks,
Leo
Reuben Swartz
Here on the blog, of course! We also have some resources and links to other materials on our website.
You can find a lot of things on the internet, although you can find some pretty bad advice as easily as helpful tips.
Crockett
Hi, interesting article. Out of interest, in the UK, Tesco has dropped the 99p in favour of 97p or 67p and it working for them! You may be interested in taking a look at my blog at
http://price-it-right.blogspot.com
Regards
Crockett