According to the book Life's Little Mysteries: Answers to Fascinating Questions About the World Around You, the professor of marketing at Northwestern University's Kellogg School of Management and Duncan Simester, the professor of management science at MIT's Sloan School of Management claim this is because "some retailers do reserve prices that end in 9 for their discounted items. Comparisons of prices at major department stores reveal that this is common, particularly for apparel." They argue that while $9.99 makes a product look more attractive than a straight $10, some chains feel that discount-style pricing is tacky, and beneath the higher-quality products they sell.
One opinion I love comes from Scot Morris' Book of Strange Facts & Useless Information from 1979, which purports that back in 1876, a Chicago newspaper was priced at a penny rather than a nickle was largely to get more pennies into circulation.
I think the more-obvious connection between an item costing $1 and .99 cents is why Apple chose their particular pricing for the bottom-tier of paid-for apps on the App Store. It's crazy, but .99 cents just seems like a more throw-away figure than a dollar.
26 comments:
It's true, it makes it seem cheaper than it is.
Ive read many times its purely for "deception" purpose. It makes things look cheaper at first sight. Many people see 9.99 and say oh its only 9 bucks instead of 10, i know its stupid, but thats how human mind works
It does make it seem more affordable, but I hate getting that damn penny =
in my estate, this type marketing is prohibited.
I remember learning about that, pure marketing genius.
definitely agree with this
I've heard that its harder to do mental math with. Quick, whats 2+3? Obviously 5. Whats 1.99 + 2.99? When you're shopping its harder to work with those uneven numbers
Vigorously nodding my head in agreement!
Bah. I'm with the guys that say it's a deceptive tactic to make you think it's cheaper. It may work on some, but not on me. Just say $10, dammit.
The pricing usually doesn't phase me. 9.99 strikes me as $10 just as .99 does $1. I guess that's just because I look at everything mathematically. lol
Somehow it works...on most people. My husband being one of them. He always rounds down. It makes me crazy. So an item at $14.99 is $14 in his mind.
if it says 9.99 i assume its 10 dollars. i never feel like 9.99 is cheaper
sales tactics..
It works, which says more about us than them...
I agree. The thing that really sickens me is the 9/10 at the end of gas prices. >.< I hate. I hate. It is all I am programmed to do I hate.
I always round up all prices when I go shopping, it's just easier that way. That way I won't make the mistake of thinking something is 9 dollars rather than 10.
haha It is too fool consumers.
in germany we dont have 99cent stores
only 1€ stores
Yeah, I think that this has been known for a long time. Common knowledge by now!
I always knew it was a scam!
That is true man
It really is to make the product seem cheaper, where I work our prices have to end in 99 or 49, at least for clothes, sometimes on furniture too.
it's true! o learned this in my marketing classes at university :)
I don't see how people find a cent less any more appealing then a round figure...
I prefer the round figure...
yep, It does make a difference but I still look at 90-99C as one dollar. I don't even see cents as an amount of money nowadays.
Yeah, I always just round up. Hell, I go by estimation rules that if it's .50 or more, round up.
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