2006-07-24 21:11:44 · 6 answers · asked by A Team 1 in Business & Finance ➔ Advertising & Marketing
so that they can say things like "under 200 dollars" and that sort of thing.
Go one step further with your question. Why do all gas stations have tenths of a cent? i.e. per gallon it might be 3.01 and 9/10ths of a cent. Its always 9/10ths and it has NEVER been anything but. Its just an excuse for an extra penny without the price seeming like its a penny higher.
2006-07-24 21:16:43 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Its a smart way to attract customers to buy products, the customer will normally choose the cheapest prices ,$99 is less than $100, $199 is less than $200, its easy and simple.
2006-07-24 22:40:18 · answer #2 · answered by elaina 1 · 0⤊ 0⤋
It's a psychological thing. You think it's less than $200 even though it is $200.
2006-07-24 21:15:37 · answer #3 · answered by opalescent_angel 5 · 0⤊ 0⤋
cos prices like $1.99 would look a lot more attractive than $2.00, it's psycological even though it's only 1 cent different. Think this pricing has proven to be workable by working on human perception on things.
2006-07-24 22:00:11 · answer #4 · answered by firefly 5 · 0⤊ 0⤋
Psychology, people see things as being significantly cheaper just by using a 99 as opposed to the 00.
It is because people are stupid, that's it.
2006-07-24 21:17:42 · answer #5 · answered by Jon H 5 · 0⤊ 0⤋
so that they can sae (eg$199) that everything is less than $200.
jus a technique to attract customers
2006-07-24 21:17:40 · answer #6 · answered by muhuehue 4 · 0⤊ 0⤋