Ever wondered why the price tag is Rs 499 and Rs 799 ends with 9? The reason will shock you, this is…
The origins of pricing ending at 99 cents date back to the early 1900s when store owners used it to ensure employees opened cash registers to provide changes, thus preventing their payments.
Have you ever noticed that many products end with numbers 99 or 99? From clothes to watches and furniture, this pricing pattern is everywhere. But what is the reason behind it? Some initially believed that the price used by a company ended at 9 or 99 for tax-related reasons. However, it has now been understood that this pricing strategy is actually a psychological strategy.
Why consider prices in 9, 99 and 999?
The widespread use of prices ending in 9 or 99 is a common marketing strategy that is often attributed to psychological pricing, called charm pricing. The technology is designed to influence consumer perceptions, making prices look more attractive and potentially driving sales.
The price ends at 99 to take advantage of the “left-number effect”, a psychological phenomenon where consumers focus on the leftmost numbers, which makes the appeal of Rs 499 more attractive than Rs 500, as the difference between Rs 4 and Rs 5 and Rs 5. This psychological phenomenon will affect the pricing strategy, making the price end at 9, appearing cheaper and more attractive.
History 9 and 99 price endings
The origins of pricing ending at 99 cents date back to the early 1900s when store owners used it to ensure employees opened cash registers to provide changes, thus preventing their payments. This practical solution to prevent theft ends up becoming a popular marketing strategy that continues to exist even as cash registers become more advanced.
Does the price end with a bad deal of 9?
According to a study by Daniel Levy and Avichai Snir, prices do not necessarily end at a price of 9, but often lead to higher prices – an average of 18%. This pricing strategy can subtly influence consumers, allowing them to perceive value that may not be available.
Meanwhile, businesses use a variety of pricing strategies with various outcomes, such as 5, 7, or 9, to create a perceived value. An odd ending can make the price look lower, while an even ending is often used to convey high quality and status in luxury goods. The effectiveness of a pricing strategy depends on factors such as target audience, product positioning and market trends.
