kittykitty
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It's a marketing ploy to look like it's less when its really the same. If a customer see's something like a car for 14,999 they think we will choose it over one thats 15,000. I think they think we're stupid. I remember thinking that in economics class when they were talking about this. |
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DonSoze
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No, it's a psychological thing. Even though you know it really isn't true, thinking "well this item is under a dollar" makes it seem cheaper than "this item is a dollar"
It has even more impact on larger items sold for prices like $399. You automatically think of it in the range of 300 even when you shouldn't. |
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Mr.Know It All
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Because it looks so much cheaper. A dollar is paper. Its just the way people think. If you go to buy a diamond its the same way. A .97 ct. is a lot cheaper then 1.00 ct. I know its crazy but its basic economics. |
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ignoramus
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It is the same reason that gas stations sometimes advertise gas for $2.27.9 or something like that. When price is less than one dollar it seems like a few coins. It is using human psychology. In reality most states charge tax and the 99 cent item costs well over a dollar. |
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Gothic Rose
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Its all pyschology. When stores end prices in say .99, it makes the consumer think it is more inexpensive and they can advertise it as say less that $100, even though if it were priced $99.99 it would be over $100 with tax. It is all for marketing. |
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teresa b
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Its a psychological thing, they say 99 cents, because the left over 1 cent is soooooo little that everyone allways says keep the change anyways, so they dont need to put the price to 1dollar or pound. LOL, its a good one really!! |
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Dee W
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It is extremely necessary. This is a marketing trick used to trick the mind into believing that you are spending less money than you are. Even though you know its a dollar the mind equates it with being less than that making it easier to spend. |
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Mindy
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It's not necessary however it looks better to consumers. .99 is under $1 |
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Shujath A
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becoz some people who are purchasing in bulk the can get discount. for example a person buys 100 goods for only 1 dollar each. If he buys only .99 cents each therefore he is making 1 cents profit. $100 X $0.1 = $10 |
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macksu
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yes,because you can say its under a dollar. |
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curious georgette
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yes, stupid amounts like that are what keep the pennies in production...like we really need them! |
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