How come so many stores end prices with $0.99 or $0.49?

Question

Towels - $9.99
Toilet paper - $5.49
Blankets - $49.99
Plastic Bunnies - $19.99

In fact, I think everything in Target ends in ‘99’ … very annoying when you’re with someone who’s always saying ‘99’ --- ‘99’ ---’99’ --- ooops … that’s me who’s saying it (blush).

Answer 1

There have been many studies which have proven that the psychology of saving will create or motivate a consumer to follow through with an impulse buy. The idea of saving even if it is only a penny will motivate. How many times did you react to something that was 9.99 when you may have not really looked at it for 10? Watch what people will do just to "win". Savings have been proven to be considered a "win" by consumers. Have you ever heard someone say they "scored" and saved 3.00 or whatever amount by buying something they never even had in mind to buy when they entered the store? Basic selling and buying marketing psychology just like buy one and get one free.

Answer 2

It sounds less expensive to say $19.99 rather than $20. The .49, .88, and .98 price endings usually indicate that the item is on sale or on clearance.

Answer 3

i guess basically a trick to make you think something is cheaper than it is...they think $0.99 sounds a lot cheaper than $1.00...but very annoying when you're paying with cash and they always have to give you a penny back...

Answer 4

Many consumers only look at the first digit..

Answer 5

because $9.99 sounds better that $10 when stores are selling their items

Answer 6

It sounds cheaper.

Answer 7

cuz it makes the price sound lower.