Why do so many prices end in .99?

Many stores when sales start times, change their price tags, putting the end of .99.But the buyer is already so often sees such a price that it seems as if he has not reacted to this cunning marketing ploy.

It may seem silly to reduce the price of 1 cent or 1 penny, but this pricing strategy was developed over a century ago, according to the University of marketing Henderson Hibbett Lee (Lee Hibbett).Historians do not give precise information about who invented this trick, but experts in consumer behavior can definitely explain exactly why it helps to sell more goods.

Hibbett explains that the end price for the .99 based on the theory that we are used to read from left to right, the first digit cuts us to the brain much stronger than the next.That is why most people buy a product whose price is 4.99 rather than 5 since he subconsciously realizes 4 is less than 5, despite the fact that a difference of one cent.

"We also always strive to reduce the amount of effort spent on making a decision regarding the purchase of the product, especially for products with the lowest cost," - continues Hibbett.

Besides, the price ending in .99, says the buyer that the product is off, so people will come to believe that make a good deal buying these products, despite the fact that the price reduction in this case is the minimum.

"Some vendors put price for the goods to be marked down, ending in 9, rather than .99, and this is a very common phenomenon, especially in clothing stores," - says marketing Eric Anderson (wrote Eric Anderson)."Luxury clothing stores prefer" not a game "with the price of .99, they just put the price of essential goods, terminating in a 9".

Anderson also said that the strength of nine is not limited to the values ​​of a cent.He had a kind of experiment by asking one of the popular apparel catalogs raise the price of one of his dresses."I was sure that when picked up bid prices fall, however, when the price rose from $ 34 to 39, the demand only increased. In comparison, the increase in price from 34 dollars to 44 did not cause any change in demand," - he concluded.

Articles Source: infoniac.ru cbsnews.com