Views: 7 Author: Site Editor Publish Time: 2021-10-27 Origin: Site
When you walked in a retail store or a shopping mall, you’ll notice that among the dazzling products, most of the prices end in .99. That cozy sweater is $39.99, cat toys are $2.99, and chicken breasts are $1.99 a pound
according to a 1997 study from the Marketing Bulletin, 60% of retail prices end in 9.
So, why end in .99?
It is said that in the 1960s, the owner of a retail store was very stingy, and he didn't trust the clerk. So, he invented a cash register. Moreover, the boss changed all the prices of the goods in the store to be ending in .99. So that the clerk needs to turn on the money-seeking machine to find money to each customer. And the drawer of the cash register has a line connected to the boss’ bedroom with a bell. Every day at noon (the busiest time of the da, the boss’s bedroom bell will ring non-stop. Once the bell does not ring, the boss will come out to see if the clerk is slacking off.
2. Non-integer pricing
For prices ending in 9 and prices ending in 0 (for example, 9.9 and 10), the same increase of 10%, people feel less about the 9.9 price increase. In the same way, when the price is lowered, the price ending in 9 will also give people the feeling of lowering the price more. In fact, this is a non-integer pricing method which is commonly used in commercial society.
The advantages of the non-integer pricing method: First, it gives people a kind of accurate calculation, which is the psychological feeling that it is the minimum price; second, it gives people a sense of cheapness.
For example: $9.9 will make buyers feel that they are in the range of 9, but $10 will make buyers feel expensive. In the eyes of consumers, $9.9 belongs to the ranks of a few dollars, which is qualitatively different from the $10. $1999 and $2,000, most of people will feel that the former will be much cheaper than the latter, in fact they are similar.
A study from MIT noted that nine-ending prices increase demand for a product, but that isn’t the only method stores use to get customers to spend more. Everything from the music played to the free chocolates and coffee provided are there to make customers stay longer and impulse shop.