Sales-Why do we stop charging at $99?
Why do we stop charging at $99? Additionally, how it impacts sales
Have you ever wondered why the majority of commercial goods that are on sale wind up having the number 99? Or how much of a difference will a single cent make in the cost of the good? Feel free to look for an answer to this question in this post if it has occurred to you.
when numerous retailers offer sales and lower their prices to end at 99. Despite how frequently we now see this, it is still a really powerful sales technique that fools a lot of customers.
Is this a recent discovery, or has it been around for a while?
Hibbett, an assistant professor of marketing at Fred Hardiman University in Henderson, said, “It can seem foolish to price products for less than one percent of a dollar, or a cent, especially if the taxes would make the whole cost more than a dollar.” Although historians are unsure of the perpetrator of this scam, consumer behaviour specialists can undoubtedly explain why individuals fall for it and continue to purchase.
This method utilises optical tricks:
According to Hibbit, the cost reaches 99. It is predicated on the idea that since we read from left to right, we are most receptive to the first digit of the price, which explains why customers are more inclined to purchase a $4.99 item than a $5 equivalent. Those starting at 4 are a better deal than those at 5!
Consumers don’t care about values below $1:
“We also tend to try to underestimate the amount of effort that goes into making product-buying decisions, especially with less expensive products,” Hibbett said in a statement to Life’s Little Mysteries. “So we may not care for the smaller dollar numbers.”
Getting savings and ensuring customer satisfaction:
Also, the.99 makes an item appear to be on sale, as stated in the Harvard Business Review article “Watch Your Price Cues,” thus the consumer is conditioned to think they received a good deal when they purchase a product that ends in 99. even if the price cut is quite basic.
Marketing Force No. 9:
It’s interesting to learn that the number 9 has an amazing marketing power through experiments confirmed to us by Professor Eric and Professor Simster through a study they conducted on the strength of this number’s effect on the mind of the consumer. As they did this, he asked a local retailer of women’s clothing to raise the offer of one of the clothes from the price of $ 34 to $ 39 $. To everyone’s amazement, the commodity’s demand surged by a third despite the fact that it was anticipated that demand would decline. On a related matter, the commodity’s price offer was requested to be raised from $34 to $44, but nothing changed as a result.