Why prices end with Rs.99?

 Why prices end with Rs.99?

Have you ever wondered while shopping why do prices always end with a 9?

Buying a new T-Shirt? Rs. 599.

Ordering a Pizza? Rs.399?

Recharging your phone? Rs.799?

Why aren’t the prices rounded off?

People are habituated to reading from left to right.

So in the shop, when we are taking a quick look at the prices, we focus on the first digit. 

If the price is Rs.799, we might imagine it to be closer to Rs.700. even though the actual price is around Rs.800.

Its been proven scientifically. 

In a 2012 study, it was found, that on the stock market, the shares priced at a round number aren’t preferred much.

But the stocks, that are a cent lesser, are brought excessively. 

Another interesting reason was seen in a 2014 IIM Bangalore study, that Indian consumers assume that things whose price ends that things whose price ends with a 9 have a higher value.

As compared to something whose price ends with a 0.

There is a perception that it is of a higher quality.

Comments

Post a Comment

Popular posts from this blog

Mcdonalds is not selling burgers!!!

 Mcdonalds is not selling burgers!!! You might be surprised to know that selling burgers is not McDonalds main business. McDonald's is a real estate company. There are 39,198 McDonald's outlets globally which has a total value of 41 billion dollars making it the 7th largest real estate owner in the world. How you can ask... usually fast food restaurants operate on franchise model, people who own land contact the brand owners and obtain the franchise licience & use their brand name and recipes for a fee. But Mcdoland's follows a different stratergy. it first buys a land and then finds people to operate there. For 60 years McDonald's has been doing this and the results!!! For so many years McDonald's has been collecting rent along with royalty fee from franchises. Name of this genius stratergy is Sonneborn model. McDonald's earns $11 Billion yearly & out of this 70% comes not from selling burgers but from the rent. Now that's smart right?
Read more

Intelligent Animal - CROW....

 It’s pretty unexpected that one of the most intelligent animals in the world has been labelled as Evil and Bad Omen!! Meet Crow or Corvids in general. They are mischievous, playful and extremely intelligent. They can use tools to Forage and solve complex problems. They also known to drop hard shelled nuts on the road so that passing by cars can crack it and then they pick them up once the road is safe using the pedestrian lights. Scientists have found that crow’s problem solving abilities are better than 7 year old human. They also can recognize faces and have been known to hold a Grudge against someone who was rude to them. Crows live in a group and have a complex social structure they share territories and help raising each other’s young every season. They are Omnivorous and their diet mainly consists of small insects, worms, seeds and fruits. Crows can be found all over the world with their ability to adapt to their environment. 
Read more

Do you know in the last century the biggest philanthropist

 Do you know in the last century the biggest philanthropist was an Indian and not Bill Gates or Warren Buffett. When calculated with today’s dollars value he donated around $ 102 billion or 81 million rupees. In the last century it accounted for about 12% of total amount donated. He realized that poverty and lack of education were two big problems in India. He started donating in 1892 spending his wealth on improving education and health. He ever created an endowment fund to encourage Indian students to persue higher education. He also contributed to India’s freedom movement. He was also the founder of India’s first major industrial city Jamshedpur. And he is often referred to as the Father of Indian Industry. You probably guessed it by now the great philanthropist and the founder of the massive Tata Group Jamsetji Tata.
Read more