We see them all the time, prices with a 99 after the decimal point. So it seems that they are more efficient than round prices. But why ?
In marketing, there is a concept called “the psychological price”. It is the optimal selling price of a product based on consumer reactions to it. If the price is too high, he won’t buy. If it’s too low, it’ll think it’s junk.
Obviously, the one ending with 99 cents seems to us to be the …
Find the continuation of “We Learn Every Day” by clicking on the player at the top of this page or subscribe to the podcast for free.