‘Some days I want more tattoos because it’s the easiest, most self-directed form of bad decision.’ –Malcolm Harris
Why product prices end in 99p. […]
There are two theories at play here. The first, called the “left digit effect”, suggests that consumers can’t be bothered to read all the way to the end of a price. “£79.99” reads as “70-something pounds”. The alternative theory is that a price ending in 99p is simply a shorthand for good value. […]
It’s easy to imagine that the shorthand for a bargain was once a 99p price, but now it’s a nice round number thanks to the pound shops. […]
A $59 dress, for instance, would sometimes be priced at $54 or $64 instead. Mr Anderson and Mr Simester found that prices ending in “9” were more likely to find buyers, relative to the prices ending in “4”. This was always true but particularly if the product in question was something new. That last fact does suggest that the “9” was conveying overtones about an unfamiliar product. It’s some support for the “shorthand” theory.