Limited Time Offer: Save 30% on PRO with code GETRESULTS

Real-World Education for Modern Marketers

Join Over 600,000 Marketing Professionals

Start here!
Text:  A A

Tried-and-True or Just Plain Blah?

September 16, 2009  

Everywhere we look, ever since we can remember, we see that price ending: .99.

But does using this just-below-a-round-number pricing system always produce optimum results for merchants? Might other pricing options produce better results?

Some researchers recently took a fresh look at pricing, and their results suggest it may be time for marketers to rethink how they present price options to their customers.

In one experiment, a group of consumers was offered the choice of two pens—Pen A (lower-priced) and Pen B (higher-priced). The researchers mixed up the price endings (.99 or .00) to create different pricing options for different groups of participants: $1.99 and $3.00 (a just-below and round combination); $2.00 and $2.99 (round and just-below combination); $2.00 and $3.00 (round pricing); and $1.99 and $2.99 (just-below pricing). The results:

The widest digit spread pushed the lower-priced pen. The "highest share for the lower-priced pen (81.7%) occurred in the condition in which the difference between the leftmost price digits was the greatest ($1.99 and $3.00)."

→ end article preview
Read the Full Article

Membership is required to access this how-to marketing article ... don't worry though, it's FREE!


We will never sell or rent your email address to anyone. We value your privacy. (We hate spam as much as you do.) See our privacy policy.

Sign in with one of your preferred accounts below:


Rate this  

Overall rating

  • Not rated yet.

Add a Comment

MarketingProfs uses single
sign-on with Facebook, Twitter, Google and others to make subscribing and signing in easier for you. That's it, and nothing more! Rest assured that MarketingProfs: Your data is secure with MarketingProfs SocialSafe!