I Got .99 Problems, But Pricing Ain’t One. « Modeled Behavior
So, to the results. The summary points are:
- Prices ending in .99 no longer have any advantage in consumer value perception, and do not lead to higher sales.
- The optimal penny value varies by country. In the United States, it is .01.
This is from the Inon.com pricing behavior study and shows an interesting result in our over-use of the "$0.99" price point. Consumers have been saturated with the ninety nine cent idea, and are reaching out for price points that make sense - and have almost the same value, but seem more cognitively approachable.
Does this mean that a bit of reason has set in? More likely just plain old cynicism - most now distrust loud marketing hype... but it sets an interesting stage for retailers now to find their newest price point. Maybe retailers will now benefit from making an extra 2 cents on each and every barcode they scan through the check out lane.
