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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Most consumer products (69%) have the same price online and offline, according to a recent report from Anthem Marketing Solutions.
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How does a writer develop a niche and stand out from the competition? Also this week, read your answers to last week's dilemma: How do we get paid what we are worth?
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Price increases don't have to mean your customers' running in the opposite direction. Differentiation and open communication can help. Here are some strategic basics of raising prices.
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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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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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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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Most content marketing agencies (66%) produce, on average, fewer than 10 campaigns a month for each client, according to a recent report from Moz and Fractl.
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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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Agencies are increasingly charging clients for paid search services based on a percentage of spend, according to recent research from WordStream.
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Most search engine optimization (SEO) agencies and specialists charge a monthly retainer for some or all of their services, according to recent research from Ahrefs.
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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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his week: How can a small company overcome the pricing battle? Also this week: What are your definitions of these key marketing phrases?
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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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Take 10: A Crash Course in Pricing Strategies
Video TutorialIn just 10 minutes, you'll get a thorough overview of pricing strategies and options you'll want to consider before establishing a price for your products.
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his week: How do you know when its time to grow your business? Also, read your answers to: What's the best approach to returning pricing to market levels without losing or alienating our customers?
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What’s your best advice for returning pricing to market levels without alienating our customers? Also this week: How do we decide which launch channels to use?
