http://en.wikipedia.org/wiki/Psychologic...
Yes you are correct. It is a physiological ploy, even though the price is marked at 12.99 your brain registers it as 12.00 instead of 13.00 because of that one cent that still makes it twelve dollars. (12.00)
In reality they would probably make more money by selling the product for 12.99 instead of 13.00 because of the dollar difference:)
Let's try the word psychological rather than physiological. Two different words with very different meanings. It's a shame because that question almost made sense. Oh well, practice makes perfect. Better luck next time...
I think you answered your own question. You might be surprised how much stores/companies spend to figure out where to put things. Like in a pharmacy, they make you walk past all kinds of miscellaneous stuff in order to get what you came there for. Same reason there is always candy next to the register.
Yeah because saying 12.99 sounds cheaper than 13
Why is it that all the prices of products don't round to the next value up?
Meaning that why is it that a store will mark something as: 12.99
Instead of just marking a price as: 13.00
Is it some sort of physiological ploy that will get people to buy more? Like how they put milk and eggs ins the back of the store?
