is it really necesary?
2007-02-15 04:15:03 · 11 answers · asked by Mrs. Ceniccola 2 in Business & Finance ➔ Other - Business & Finance
It's a marketing ploy to look like it's less when its really the same. If a customer see's something like a car for 14,999 they think we will choose it over one thats 15,000. I think they think we're stupid. I remember thinking that in economics class when they were talking about this.
2007-02-15 04:19:24 · answer #1 · answered by Anonymous · 0⤊ 0⤋
It is the same reason that gas stations sometimes advertise gas for $2.27.9 or something like that. When price is less than one dollar it seems like a few coins. It is using human psychology. In reality most states charge tax and the 99 cent item costs well over a dollar.
2007-02-15 04:21:17 · answer #2 · answered by ignoramus 7 · 0⤊ 0⤋
becoz some people who are purchasing in bulk the can get discount. for example a person buys 100 goods for only 1 dollar each. If he buys only .99 cents each therefore he is making 1 cents profit. $100 X $0.1 = $10
2007-02-15 04:29:26 · answer #3 · answered by Shujath A 1 · 0⤊ 0⤋
Its a psychological thing, they say 99 cents, because the left over 1 cent is soooooo little that everyone allways says keep the change anyways, so they dont need to put the price to 1dollar or pound. LOL, its a good one really!!
2007-02-15 04:23:50 · answer #4 · answered by teresa b 1 · 0⤊ 0⤋
No, it's a psychological thing. Even though you know it really isn't true, thinking "well this item is under a dollar" makes it seem cheaper than "this item is a dollar"
It has even more impact on larger items sold for prices like $399. You automatically think of it in the range of 300 even when you shouldn't.
2007-02-15 04:18:38 · answer #5 · answered by DonSoze 5 · 2⤊ 0⤋
Its all pyschology. When stores end prices in say .99, it makes the consumer think it is more inexpensive and they can advertise it as say less that $100, even though if it were priced $99.99 it would be over $100 with tax. It is all for marketing.
2007-02-15 04:24:11 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Because it looks so much cheaper. A dollar is paper. Its just the way people think. If you go to buy a diamond its the same way. A .97 ct. is a lot cheaper then 1.00 ct. I know its crazy but its basic economics.
2007-02-15 04:19:54 · answer #7 · answered by Mr.Know It All 4 · 0⤊ 0⤋
It is extremely necessary. This is a marketing trick used to trick the mind into believing that you are spending less money than you are. Even though you know its a dollar the mind equates it with being less than that making it easier to spend.
2007-02-15 04:27:06 · answer #8 · answered by Anonymous · 0⤊ 0⤋
It's not necessary however it looks better to consumers. .99 is under $1
2007-02-15 04:18:57 · answer #9 · answered by Mindy 2 · 0⤊ 0⤋
yes,because you can say its under a dollar.
2007-02-15 04:19:26 · answer #10 · answered by Anonymous · 0⤊ 0⤋