The number of cents on a price tag might have a greater influence on which product you choose to buy than the number of dollars, according to new research.
Marketing researchers compared the impact of rounded and non-rounded prices, and found rounded numbers increased the chances of consumers buying a product when driven by feelings, such as a $100 camera for a summer holiday.
Non-rounded prices upped the chances of customers buying the same product when they were motivated by practical reasons, such as a $101.53 camera for a class project
So I guess the question begs is that what price do consumers prefer when they are looking for a good deal on a product.
"If you're on a holiday, feeling relaxed and great, and you see a camera for $100, you're going to think: 'Great bargain, great value, it's probably on sale and I'm going to buy it'," he said.
"If you see $99.74, you're going to think: 'Well that's full price, no one's going to put it on sale at $99.74'. We think it's not a bargain."
I don't really understand the logic of that. Why would anyone assume $99.74 is the full price? Surely $100 sounds more likely to be RRP?
Perhaps on a subconscious level I may do this but I really don't think it makes a difference as long as the item is good value compared to other retailers.
The Age: Numbers game: How prices get shoppers 'feeling right' about a deal
Well, let's see what the Journal of OzBargain poll says:
Neither.
It also depends on how the consumer finds said price.
(Sale/Clearence tags with non-rounded amounts might be less likely to be viewed as "full price", whereas simply scanning the item up at a price-checker and drawing an even amount could invoke the "this is a bargain/good price".
Regardless, in true OzBargain spirit, someone, somewhere has or is about to have it for cheaper.