why not just $15 instead of 14.99
2006-08-21 12:02:07 · 5 answers · asked by arigont 2 in Business & Finance ➔ Corporations
Psychologically, we tend to process the minimum amount of information needed to make a decision. And because we read left to right (in English, at least), we read only the first numbers and the number of digits. That's why there are a lot of things priced $19.99. We see the price as being under $20 and perceive it as being cheaper, despite being only a penny away from $20. Same thing in real estate markets--notice almost all houses priced ending in $900. It's not enough to kick into the next mental category, but gives the seller some "throwaway" money in negotiations.
2006-08-21 12:25:25 · answer #1 · answered by Jamestheflame 4 · 0⤊ 0⤋
Another reason has more or less disappeared because of sales tax. Let's say an item costs $1.00 - It is easy for the cashier to put the dollar into his pocket and not ring up the sale at all. If the item costs $.99, the cashier has to open the register to get change.
2006-08-22 10:33:01 · answer #2 · answered by Adoptive Father 6 · 0⤊ 0⤋
That's been happening for years because shop owners think we are going to look at (using your example) $14 instead of $15. Makes it sound cheaper.
Personally I always go for the highest price on the tag then I know I have enough money.
2006-08-21 19:18:54 · answer #3 · answered by tea cup 5 · 0⤊ 0⤋
It's been shown in psychology studies that people, on the whole, perceive the $__.99 price as "cheaper."
2006-08-21 19:08:45 · answer #4 · answered by wangarific 4 · 0⤊ 0⤋
Makes the numbers look smaller than they actually are.
2006-08-21 19:08:54 · answer #5 · answered by Anonymous · 0⤊ 0⤋