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What is the sense in using prices like 99.95 instead of 100? How does that effect your customers?

Negotiation Marketing Customer Service Sales Business Development
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Question ajoutée par Ibrahim Hussein Mayaleh , Sales & Business Consultant and Trainer , Self-employed
Date de publication: 2014/10/26
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Adeel Ahmed
par Adeel Ahmed , Accounts Manager , Casafina Home Furnishing LLC

It attract customers, Customers think its cheap to buy.

Osama Bin Shahid
par Osama Bin Shahid , Senior Accountant (Associate-Finance) , UBL Fund Managers Limited

Psychological pricing

Vinod Jetley
par Vinod Jetley , Assistant General Manager , State Bank of India

It is assumed that this is done because the price seems lower to the consumer. But this is not the reason the practice started. What was the original reason for this pricing method? The practice originated to ensure that the clerk had to open the till and give change for each transaction, thus recording the sale and preventing him from pocketing the bank notes.

Ibrahim Hussein Mayaleh
par Ibrahim Hussein Mayaleh , Sales & Business Consultant and Trainer , Self-employed

Yes, indeed. It is psychological effect.

Human mind usually round figures down. If you ask someone how much does it cost, most often he will say90 and somewhat. Which is much less than100.

Jamal Ahamad
par Jamal Ahamad , Front Office Representative , Ncell Pvt Ltd

Normally We found there is taxation variation regarding the pricin.sometmes customers also complains the present pricing scenerio i.e.99.95 as they prefer in round figure..secondly we can say it is pshychological effect for the customer

Subramanyam Srinivas Kottram
par Subramanyam Srinivas Kottram , Head-sales & Marketing , Topend Technolgies

Next higher number AFFECTS/Has impact on the mind ,this effect is used  even by those companies in high value business like CAR etc,assuming few people go for High value purchase,even here lower value figures are used.  

Arbab ud Din
par Arbab ud Din , Business Development Manager , Diouf Al Sharq

WOW....It's Interesting  companies knows the psychology of consumers and limits the price under three figures that increase the sale dramatically .

Karim Ihamichene
par Karim Ihamichene , Country Procurement & RCM Head , International Financial Institution

The psychological pricing makes it  (or better gives the impression that it is)) cheaper especially when you "save" a  digit. e.g:99.9ç instead of100! The same applies for FX,: You easily buy something EUROS5.50 rather than INR300! although you have been fooled in the FX rate! Free shops owners know that ...

padmakumar pathiyil
par padmakumar pathiyil , Marketing Consultant , Management Consultancy

Psychological Pricing.  Consumers tend to perceive these prices as being significantly lower than they actually are, Considering it to the next lowest monetary unit. Hence prices like $5.99 are associated with $5 and not $6.

Utilisateur supprimé
par Utilisateur supprimé

In England we have a saying "every penny counts" ^_^... The remaining5 out of the100 if saved up over a period of time they will give you another100 to spend. Our minds work in mysterious ways we create illusions and make our selves believe them, that's the beauty of reverse psychology. 

Divyesh Patel
par Divyesh Patel , Assistant Professional Officer- Treasury , City Of Cape Town

  1. Because it’s simple mind illusion

  2. This creates a powerful difference between its real value and its perceived value

  3. Consumers perceive prices to be cheaper if they end in odd numbers

  4. Play with the buyer's emotions and make him believe that they is paying lesser than the regular price

 

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