Very few people decide to buy something that is priced more than it is
worth, which is why this kind of tactic is used. It makes the buyer
feel that the price is worth the item regardless as to whether it is or
not. If you feel that it is $10 cheaper simply because it is $49.95 and
not $50 (which the majority of buyers do when doing the impulse buy)
then you are far more likely to buy it. In essence, it is meant to get
the buyer to pay more than they normally would think to pay for an item,
or to gouge out another buck from the buyer as you put it.
It is a marketing tactic, plain and simple. Granted it shouldn't be
used in that way, but I guarantee you that those big businesses out
there (and alot of small ones too) use this tactic so that they can
squeaze a little more money out of the consumer per purchase and not
just to make people feel better. Business doesn't typically care how
people feel, just how much they spend.
And that is why many people find this practice unscrupulous.
Sam
"Michael S. Davis" wrote:
>
> On Wed, 5 Jul 2000, Sam Charette wrote:
>
> > Marketing people know this behaviour well and it is why the vast
> > majority of resellers sell goods at 1-5 cents less than a dollar. It
> > means they will be able to charge more for something and still have the
> > buyer feel that they are getting it for a substantially lower price.
>
> The point is NOT to charge "more" than something is worth. It is to
> charge what it IS worth and STILL have the buyer feel better about the
> purchase. It is NOT to gouge another $1 out of the buyer.
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