A common practice among retailers is to price products at 199 or 999 instead of rounding the price up to 200 or 1,000. Cognitive psychologists often refer to this as the left-digit effect and it is the one of most prevalent pricing strategies in the world.
Aleem Bawany explains the psychology behind off-by-one pricing here.
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2 comments:
We used to call sweetly this as "Bata pricing". నా చిన్నప్పటినుంచి అలవాటు అయిపోయింది... :-)
@Sudahakar.. Bata pricing is right. :)
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