It's a dated system. It all started with physical money using cents, öre, whatever. My country's version fo the "cent" is "öre". Which doesn't exist any longer in physical form.. so if I buy something for 19.99KR with physical cash, I actually overpay.
It's much worse than you think. Some people knock off hundreds of dollars in their minds. Its like they only see the first number and everything after counts as zero. It's all subconsciously
Fun fact: Prices like this weren't invented by marketing teams to trick our brains into thinking they are lower, even though, as you pointed out, that works.
It's an even older phenomenon than modern market research would allow.
Not too long after the Industrial Revolution shop owners would start choosing prices like this because if they charged even amounts customers would hand over a bill and an unsupervised employee could just pocket it.
Choosing prices that didn't correlate directly to common notes meant transactions required change, forcing employees to use the register which would then register the transaction and ensure they put the money in the till.
For me I round up, then I get something back from the amount instead. Of course, I am more likely to compare the total to whatever I have to see if it's worth it. I don't consider the total to be an amount to considered cheap or not.
I think the psychological trick only works in the first state of implementation. If you compare prices regularly everyone I know short cuts 19.99 automatically to 20. I mean this illusion fades away pretty quickly if you are conscious of your environment and actions
They don't just think. There's a very good reason this is a common practice: because it works and the average person does indeed react like this. It's a psychological trick.
To be fair this does work. I actively have to be thinking in my head "$7.80 so it's $8... $9.95 that's 10 whole damn dollars. $3.25 might as well call that $3..."
Funny thing is this all got started for a practical reason.
Back in the all cash days making things come to an odd total forced the cashier to open the till to make correct change which recorded the sale.
If something came to a round total people would often pay with the exact number of bills. The cashier would just pocket the money, and it wouldn't show up until the books were balanced days or weeks later. There would just be missing stock.
Please, let's just put the FINAL PRICE of all items at or on the item. No guessing, no .99 cents stuff (guess what, we no longer even make pennies!). It's not impossible. Somehow, the final price is figured out at the register. It can be done.
It’s true. They put a lot of money into researching how to get people to spend money. From the placement of products to the music you hear it’s all been calculated.
Everyone knows it's the same price, but it just looks better. and thus making you decide to go for it even though you absolutely know it's the same price.
I am convinced, that all this marketing and advertisement „science“ is not woking as everyone pretends. I know that there is a lot of research and psychology behind. But that does not work with everyone. Do you guys know how this research is done?
And you CANNOT measure the effect of this reliably.
Well, that’s because we do
So, true.
No we don't.
Every sensible person do not think "It's only 19$", they think mentally "It's 20 dollars".
It's more people than you'd think. Otherwise they wouldn't price them this way.
It's a dated system. It all started with physical money using cents, öre, whatever. My country's version fo the "cent" is "öre". Which doesn't exist any longer in physical form.. so if I buy something for 19.99KR with physical cash, I actually overpay.
Sweden? Presumably KR is kroner.
Sweden.
Though "öre" and "kronor" is used by other countries than just Sweden.
It's much worse than you think. Some people knock off hundreds of dollars in their minds. Its like they only see the first number and everything after counts as zero. It's all subconsciously
I always round it up. Even if it's on like 19.10 I always say well that's 20$ right there.
We usually read the first 2 or 3 numbers so... It's kinda true.
Fun fact: Prices like this weren't invented by marketing teams to trick our brains into thinking they are lower, even though, as you pointed out, that works.
It's an even older phenomenon than modern market research would allow.
Not too long after the Industrial Revolution shop owners would start choosing prices like this because if they charged even amounts customers would hand over a bill and an unsupervised employee could just pocket it.
Choosing prices that didn't correlate directly to common notes meant transactions required change, forcing employees to use the register which would then register the transaction and ensure they put the money in the till.
Wait what? Really? This seems so awesome! Internal control at it's finest.
They wouldn't make much prices if we didn't see them like this
And it works like a charm, no wonder it's "Everywhere"
It's exactly how we see prices; there is a science behind that.
Psychological trick
Still is how you see prices
To be fair, they're not wrong...
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This. It works on almost everyone I've come across. The people who round up are sadly an extreme minority
I am guilty
For me I round up, then I get something back from the amount instead. Of course, I am more likely to compare the total to whatever I have to see if it's worth it. I don't consider the total to be an amount to considered cheap or not.
X.99 is going away with the pennies
I can only hope.
So true Everywhere
I think the psychological trick only works in the first state of implementation. If you compare prices regularly everyone I know short cuts 19.99 automatically to 20. I mean this illusion fades away pretty quickly if you are conscious of your environment and actions
But it is. Lol. The fact that you think you aren't affected is the real meme.
Where do they say they're unaffected
It's self explanatory in the context of the language used.
You don't mock companies thinking .99 makes a difference if you think it makes a difference. Simple logic
Because it’s true. In your head something that’s 99.99 is much cheaper than 100
To me it s the opposite. 99.99 seems larger than 100
Me too. My initial thought is that 100 is smaller because it has small numbers, and 99.99 has 4 numbers, and all are as high as they get.
But I'm sure most people it works on, otherwise it wouldn't be a common way to price items.
but what you would see is 100.00 compares to 99.99
It literally does work. Just because some of us are too autistic for it doesn't mean everyone else is
They don't just think. There's a very good reason this is a common practice: because it works and the average person does indeed react like this. It's a psychological trick.
If it didn’t work they wouldn’t do it
>but it doesn't work on me
4 digits are more expensive than 2 digits. That's easy.
To be fair this does work. I actively have to be thinking in my head "$7.80 so it's $8... $9.95 that's 10 whole damn dollars. $3.25 might as well call that $3..."
19.99 + free shipping < 15.99 +$3 shipping. Disproved it.
I see $20.00 plus tax when Iook at $19.99.
Funny thing is this all got started for a practical reason.
Back in the all cash days making things come to an odd total forced the cashier to open the till to make correct change which recorded the sale.
If something came to a round total people would often pay with the exact number of bills. The cashier would just pocket the money, and it wouldn't show up until the books were balanced days or weeks later. There would just be missing stock.
Please, let's just put the FINAL PRICE of all items at or on the item. No guessing, no .99 cents stuff (guess what, we no longer even make pennies!). It's not impossible. Somehow, the final price is figured out at the register. It can be done.
It’s true. They put a lot of money into researching how to get people to spend money. From the placement of products to the music you hear it’s all been calculated.
Marketing tactics
If I see this meme one more time I'm deleting my account
r/RedditIsACult
Exactly. This works for a reason. Seems dumb when you think about it but subconsciously it works
For example, $399 is more appealing than $400
Psychologically, the average person does
Ils ont raison
It works doesnt it?
9 > 0
I see nines it means more money
I still wanna know if those people see $0.99 as free
It works every time you always have to math to defend yourself but at a glance it does the trick type of thing.
Look up the JCPenny effect.
Yep. And they are right.
It has been proven to work that way.
Everyone knows it's the same price, but it just looks better. and thus making you decide to go for it even though you absolutely know it's the same price.
decimals look good only in math problems not as a monetary amount augh my brain starts to itch
And they are right....most people do.
I am convinced, that all this marketing and advertisement „science“ is not woking as everyone pretends. I know that there is a lot of research and psychology behind. But that does not work with everyone. Do you guys know how this research is done?
And you CANNOT measure the effect of this reliably.
They do this to say "it's not even 20 dollars"
But is it free shipping?
19,99 looks more expesive than 20
I wish they just went with $20 instead why make it more complicated