2007-05-07 04:36:54 · 7 answers · asked by Brian P 1 in Business & Finance ➔ Corporations
When dealing with astronomical record-breaking profits, rest assured that any act or omission is in furtherance of the bottom line..
2007-05-07 04:50:08 · answer #1 · answered by Anonymous · 0⤊ 0⤋
To deceive the consumer. When the price is like that, the consumer says "Oh, it's $2.83" but over the course of a day, week, or lifetime, that extra 9/10 of a cent adds up to a lot of cash.
2007-05-07 11:45:09 · answer #2 · answered by CSUflyer 3 · 0⤊ 0⤋
good friggin question.
it must be cos elasticity of demand for gas is so high. A 3 cent difference in two stations across the street from each other is astronomical in people's minds... even when the total difference for 20 gallons is less than it costs to make a phone call nowadays.
2007-05-07 14:39:27 · answer #3 · answered by gt5364e 3 · 0⤊ 1⤋
The difference isn't for the consumer who only pumps 12 gallons a week it is for the retailer. Revenues will be significantly different depending on the thousandth (.00x) since they can pump out thousands of gallons a day.
What consumer thinks, "Oh for 2.83 its a steal but 2.84, now that's just outrageous"?
2007-05-07 14:18:25 · answer #4 · answered by Rank Roo 4 · 0⤊ 0⤋
It's all about retail pricing psychology. For example, take a look at the follow two prices. What's your first and immediate impression?
$9.99
$10.00
It's been shown time after time in surveys that $9.99 appears to be much less than $10.00.
2007-05-07 14:30:41 · answer #5 · answered by jdkilp 7 · 1⤊ 0⤋
I believe that there is a tax on the gas that is $.XX9 cents and that results in all prices being $X.XX9.
2007-05-07 17:21:03 · answer #6 · answered by dcholsted 2 · 0⤊ 1⤋
To make it look cheaper than it is.
2007-05-07 11:45:14 · answer #7 · answered by JJ 3 · 1⤊ 0⤋