2006-06-13 04:54:01 · 5 answers · asked by bobvt@sbcglobal.net 1 in Business & Finance ➔ Corporations
Because as fiddlesticks9 said its a way to attract the consumer. But what he forgot to mention is that in order to actually work you need the mindless consumers, who will see 1.99 as less then 2 and will always go to buy it from the one that has 1.99 price.
Plus the true reason behind it is that when they buy the gas from the supplier, they are charges in the same manner.
2006-06-13 05:38:41 · answer #1 · answered by fasb123r 4 · 0⤊ 0⤋
It's called brainless marketing by greedy corporations.
They think that people in this day and age don't KNOW that 1.99 may as well be $2.00 regardless, but they think that the .01c less will ENTICE people to buy more gas, or buy THERE.
If they had priced it at $2.00 even, it would look much more honest.
In fact,--- it probably costs $0.50 or more to step on the gas and go to the next gas station a block away.
Marketing is still in the age of the greedy dinosaur.
2006-06-13 05:01:36 · answer #2 · answered by fiddlesticks9 5 · 0⤊ 0⤋
gas pumps are fairly precise in monitoring each and every drop. A gallon of gas priced at say...$2.seventy 9 9/10 is unquestionably $2.80 a gallon. Its an merchandising gimmick they use to make one gas stations fee seem greater fee-effective than the different. They use trouble-free mathematical fractions to get that greater penny from you. It provides up.
2016-12-08 08:46:45 · answer #3 · answered by gonzalescordova 3 · 0⤊ 0⤋
That is part af the tax. It is always set w/ the 9/10's total.
2006-06-13 04:58:54 · answer #4 · answered by jnyscrp 2 · 0⤊ 0⤋
It is the tax.
2006-06-13 05:12:47 · answer #5 · answered by Donkey 4 · 0⤊ 0⤋