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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 · answer #1 · answered by JC 2 · 0 0

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 · answer #2 · answered by Patti C 7 · 0 0

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 · answer #3 · answered by I Love Jesus 5 · 0 0

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 · answer #4 · answered by Delta1 2 · 0 0

Yes it looks cheaper then it really is and people often warm up to the product easier.

2007-05-28 04:27:07 · answer #5 · answered by martinn12006 2 · 0 0

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