The .99 Cents Costing

Philippines
February 15, 2013 5:45pm CST
Friends.. What is it with the .99/99 costing? I am referring to the sellers who would sell 3.99, 4.99, 599 when they can simply set it with 4,5 and 600??? I dont get it...
1 person likes this
4 responses
• Poland
15 Feb 13
The answer is fairly easy. One cent isn't much but $4.99 looks better subconscious than $5.00 when it comes to prices. You just tend to thing it's cheaper than $5.00. You are more likely to buy something if it appears cheap to you at first sight.
1 person likes this
• United States
15 Feb 13
I saw this question on a business site I was reading long time ago. this was the answer they gave as well. and I see it as being true.
@Raine38 (8756)
• United States
16 Feb 13
Yep, that's the reason why do that. The eyes would gravitate to the one where they saw the 4 instead of the 5 on the dollar and ignore the cents part altogether.
• India
16 Feb 13
This type of pricing is known as psychological pricing and is based on a theory that certain prices will have psychological impact on the minds of the consumers. This type of pricing is based on a hypothesis that the consumers ignores the least significant digits and even the cents are not totally ignored but they may subconsciously be partially ignored. And sometimes the consumer thinks that the goods are marked at lowest price possible. According to the psychological pricing theory mostly consumers judge the price of an item by its left most digit.
• Philippines
16 Feb 13
thank you intel.. but is the psychological thing really working... how come it doesnt seem to effect on me as i always round it up to the nearest hundreds...
• India
16 Feb 13
It will not affect you as you are not the target market for them. The consumers which make their buying decision depending upon their subconscious mind are the target market here. I hope you understand this point. This pricing method is very much older but still the marketers use this method in fixing their product price so it shows that this method is still working.
• India
16 Feb 13
Grace beti They put price tags like say 15.99 in place of 16.00 because that looks smaller amount , similarly if they want to make some thing longer, say one hour talk time, they say 3600 seconds.
@jdawg011 (505)
• Canada
16 Feb 13
It's a dumb thing that has caught on because, when people see 8.99, they think "only $8!" It's silly, but it's true, and it has just caught on as the standard now.