2007-11-20 00:59:16 · 5 answers · asked by Raymond 6 in Social Science ➔ Economics
It is kind of stupid, isn't it? But it's always been this way. The way it started was when the penny was used and as valuable as dimes are to day, people used this method to price goods. It made the price almost an extra cent without actually showing it on the tag. Back in the 50's I ran a service station and took the 9/10's off the pumps. The gas price was, if you can believe it, 29.0 cents a gallon. No one ever noticed it. The penny today isn't even worth picking up off the ground. Although I still pick them up. I believe they should be discontinued. Believe it or not, but the penny wasn't always the smallest amount of currency. We use to ride city buses with Tokens.They were smaller than Penny and made out of cardboard and painted brown. It took 10 of them to make a penny. And the gas pumps should discontinue the 9/10 also.
2007-11-20 01:22:34 · answer #1 · answered by Jackolantern 7 · 0⤊ 0⤋
the reason is it mentally makes u think ur spending less if it is 99 cents instead of a dollar for example
2007-11-20 09:03:40 · answer #2 · answered by ? 4 · 0⤊ 0⤋
It's related to marketing (price is one of the things marketing is in charge of). People perceive it (studies show) to be lower than it really is.
2007-11-20 09:06:52 · answer #3 · answered by Unsub29 7 · 0⤊ 0⤋
It's psychological marketing, makes their prices look lower.
2007-11-20 09:02:28 · answer #4 · answered by 006 6 · 0⤊ 0⤋
because it looks better being $4.99 per gallon than $5 per gallon, that and you can get an extra gallon after pumping like 100 gallons
2007-11-20 09:13:18 · answer #5 · answered by Micheal Jones 3 · 0⤊ 0⤋