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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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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Are you interested in looking up the daily wholesale prices of electricity and using that information to decide when and how long you'll run the air conditioning or the gas dryer? Ready or not, variable pricing is about to invade your The trend towards variable pricing is becoming more pronounced. Variable , or pricing based on
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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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Most consumer products (69%) have the same price online and offline, according to a recent report from Anthem Marketing Solutions.
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Rising subscription prices are challenging businesses to balance profitability with customer satisfaction. Discover strategies to manage subscription price increases effectively, balancing customer retention and revenue growth. Read more.
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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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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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Most companies are missing a significant opportunity to maximize revenue and profits due to dysfunctional pricing strategies.
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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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As marketers we've been raised on the 4 , and in fact some authors have suggested new . Of the traditional 4 Ps most marketers are consumed with "Promotion" and "Product," and fewer yet focus on However, it seems "Price" gets the short end of the stick time and again. Those days are over. In an
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The End of Fixed Pricing?
ArticleAs more companies across the globe become data driven and adopt analytics to improve decision making, marketers are focusing on "price" as a way to immediately improve top line revenues and Dynamic , or pricing based on supply and demand, seasonality, or other events is popular with online auctions and with many transportation companies such as
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MarketingProfs guest blogger Kalen Smith discusses three good reasons why it is important to have consistent pricing, especially during a recession.
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MarketingProfs blogger Paul Williams discusses various pricing strategies and innovations for boosting business.
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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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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.
