Strategy 99: The classic trick still blinds customers

Instead of rounding up, sellers always list 1 unit lower, which creates a deceptive psychology for buyers.

Bet on number 9

Apple’s new iPhone X impresses not only with its beautiful redesign, but also with its $999 price tag. Even though it’s the most expensive iPhone yet, Apple’s decision to price the product at $999, rather than rounding it up to $1,000, is a surefire way to attract customers.

This isn’t the first time Apple has used this pricing strategy. When the tech giant first launched iTunes in 2003, CEO Steve Jobs priced each song available through the service at just $0.99. The result was a surprise: people started paying for music rather than downloading it illegally.

Jobs built a digital music business, according to The Times. Now it seems Apple is betting on 99 again.

Usually when giving product prices, companies often choose the price with the last digit being 9, for example 99 or 999. This makes customers feel like they have bought it cheaper.

According to The New York Times, a study by Professor Robert M. Schindler at Rutgers Business School found that ending in 9 gives buyers the feeling of getting a refund. In the minds of consumers, 99 means a low price.

Other studies have also shown that pricing in odd numbers, including a reduction of 1 unit, makes buyers think the price is cheaper. In a paper by the Center for Rural Development at the University of Mississippi, Gregory Passewitz argues that this gives customers the impression that the price is not 0.2 or 0.5 but less.

Number 9 Strategy

The 99 price tag was first used by R.H. Macy, founder of the .H. Macy department store. He advertised black silk for 99 cents in a newspaper in 1880.

The liquor store owner realized that his sales increased significantly when bottles of wine were priced at $0.99 instead of $0.79 or $0.89. He decided to replicate the idea by opening a 99 cents Only store with his wife. The brand is now worth $1.55 billion.

Ending prices with the number 9 is an effective sales tactic. According to economist Lee E. Hibbett, consumers are often interested in price but they rarely pay attention to the last number 99. Vendors often choose a lower price of 1 dong, one reason is that when rounded, it can reach the tax threshold.

This pricing strategy has been around for centuries. Scientists are not sure who came up with this number, but experts all agree that it helps them sell more products.

He analyzed, for example 0.99, we read from left to right, the first digit will make the biggest impression. That is why buyers choose products priced at $4.99 more than products priced at $5, even though the two designs are the same. Getting the number 4 always seems to win the hearts of buyers more than 5, even though the difference is only 1 very small unit.

Another study in the Harvard Business Review found that the last number 99 is also very important. Consumers believe that they will get the lowest price, saving money when the price ends at 99.

Retailers often offer prices as low as 99 on discounted items, which is a popular number in department stores and many consumer products, especially apparel, says Eric Anderson, a marketing expert at Northwestern University.

Not only do they stop at reducing prices, when they increase prices, they also often choose the number 9. According to Anderson, they increased the price of the dress from 34 USD to 39 USD and the buyer still accepted it.

According to VNN