Sales tactics-Why does pricing stop at 99? Moreover, how it impacts sales
Sales tactics-Why does pricing stop at 99? Moreover, how it impacts sales
Have you ever wondered why the pricing of the majority of commercial items during sales finish with the number 99? What impact will one cent make in the item’s price? Feel free to seek for an answer to this question in this post if it has occurred to you.
when several retailers offer sales and lower their prices to finish at $99 Although it is now quite normal to see this, it is still a highly powerful sales technique that many customers are duped into using.
Is this a hadith or has it been a tradition for a long time?
It would seem foolish to sell products at less than 1 percent of a $1, or a penny, Hibbett, assistant professor of marketing at Fred Hardman University in Henderson said, “Especially if the taxes were likely to make the whole cost greater than a dollar.”
Although the perpetrator of this hoax has not been identified by historians, consumer behaviour specialists can undoubtedly explain how consumers came to believe it to be true and increased their purchases.
This method is based on optical tricks:
Hebet explains why he decided to cap the price at 99. It is based on the idea that since we read from left to right, the price’s first number will stand out to us the most. As a result, customers are more likely to purchase a $4.99 item than a $5 one, and it appears that items with a price starting with 4 are more affordable than those with a price starting with 5!
The value below a dollar is irrelevant to the consumer:
Hibbett told Life’s Little Mysteries that we may not be concerned with lower dollar amounts because “we also tend to attempt to limit the amount of work that goes into making goods purchasing choices, particularly with less priced things.”
Customers are happy and take advantage of sales opportunities:
The buyer is conditioned to think they received a good deal when they purchase a product that ultimately costs $.99 since the.99 makes the item look reduced, according to the “Mind Your Pricing Cues” article from the Harvard Business Review. even if the price cut is quite basic.
Marketing: Strength No. 9
It is unusual to know that the number 9 has an astonishing marketing power, as Professor Eric and Professor Semester demonstrated to us via tests they did through a research they conducted on the intensity of this number’s influence on consumers’ minds. To everyone’s amazement, the commodity’s demand surged by a third despite the fact that it was anticipated that demand would decline. In addition, it was proposed that the commodity’s price be raised from $34 to $44, but nothing changed.