Similar to the other responses, people will associate it with a lower price, either $99 or even $90 instead of $100. Current marketing texts still say that this tendency is still true today. From personal experience while shopping w/ other people, it does work. However, I have noticed that the people who round down typically have lower levels of education. Basically, it is just a pricing tactic companies have used to exploit uneducated, and typically speaking, low income consumers.
2007-05-27 21:42:03
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answer #1
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answered by JC 2
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I am speaking from a consumer's viewpoint. Since I have been old enough to spend money, I have always rounded up. If something is $49.95 I ALWAYS think $50. I don't really think that edge works any longer. However apparently no one agrees with me since everyone still prices this way.
2007-05-28 04:30:14
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answer #2
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answered by Patti C 7
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I am 56 and they have been doing this for the 56 years I have been alive and it works. 85% of people see the $99 and not realize it is really $100. They round down and yes it has worked for years and years except for the 15% like me who see it right away. Mathematically inclined and very pragmatic
2007-05-28 04:28:10
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answer #3
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answered by I Love Jesus 5
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people really dont want to spend $100 on something, but if they see the $99, but not the decimals, then it looks cheaper.
2007-05-28 04:31:06
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answer #4
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answered by Delta1 2
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Yes it looks cheaper then it really is and people often warm up to the product easier.
2007-05-28 04:27:07
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answer #5
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answered by martinn12006 2
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