Why do we see 9's used at the end of so many prices - like $.99 rather than $1.00?
| Answer: The idea behind this practice is known as the "Just Noticeable Difference" or JND. This is based on research that shows that customers see a big difference between two prices, even when in reality there is only a penny difference. |
More resources related to Pricing
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As one of the 4 Ps of marketing, pricing is the most direct way of communicating value to customers. It has the most direct impact on bottom-line performance. At the same time, price as a marketing instrument is tricky. Here's the basics of pricing from both a strategic and tactical angle.
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In the past year, the most fundamental of the 4 Ps of marketing (price) has rapidly risen to prominence. In a way, that is an inevitable outcome of the recent media focus on macro factors that determine the economics of demand and supply—inflation, employment, and income, to name a few. Not surprisingly, as the consumer price index flutters up and down, all eyes focus on commodity prices. So how much impact do commodity prices have on retail prices? And on pricing strategy?
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Rising subscription prices are challenging businesses to balance profitability with customer satisfaction. Discover strategies to manage subscription price increases effectively, balancing customer retention and revenue growth. Read more.
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Price wars create a seemingly unsolvable dilemma: Match the competitor's price and risk losing profits, or ignore the competitor's price and risk losing revenues. Yet, based on a vital but universally neglected business principle, there is a powerful solution to winning—and preventing—price wars.
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Pricing is more than cost plus margin or lowering your prices just a tad below competitors'. Think like a buyer to zero in on profitable pricing strategies tailor-made for you, with the added benefit of setting you apart from the competition.
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Most companies are missing a significant opportunity to maximize revenue and profits due to dysfunctional pricing strategies.
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You'll learn how to optimally display products or services on your pricing page, get your customers to choose the product you suggest, and use incentives and bonuses to increase conversion.
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Thinking hard about how your approach to pricing impacts conversions and sales? When applied with know-how and finesse, the right psychological pricing tactics can turn your customers’ brains into buying machines. Well, almost. Here's how to put the basics of "price psych" into action.
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Technology has changed consumer behavior, in turn forcing marketers to consider newer takes on traditional pricing models. You now have to dig deeper into buyers' thought process to understand what persuades them to buy.
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Iderive.com has a new pricing model for the web. Will it survive? In fact, will any of the new pricing models, like that of Priceline.com, survive?
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Pricing can be one of the most sensitive parts of a marketing proposal, but these four tips can help your prospects focus on the value of your services rather than the dollar amount—and give you their Yes.
