The Psychology of Pricing: Customers Prefer Round Numbers

 In International
Bottom Line: Despite the prevalence of 99-cent stores and $1.99 price tags, consumers appear to favor round numbers when paying for goods and services. Managers should consider consumers’ overwhelming preference for whole-dollar amounts when setting prices.
It’s not often that something called ‘‘The World of Goo’’ has anything to teach business managers. But in this case, it just might. To celebrate the first anniversary of the physics-based puzzle video game, the developers invited people to download the World of Goo for any price they wished using PayPal. More than 65,000 purchasers in 104 countries paid anywhere from a penny to US$150 for the game.  Strategy+Business – Read more…

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