Anonymous asked in Business & FinanceCorporations · 1 decade ago

why do stores charge $1.99 and not $2.00?

why does it have to end at 99 cents and not a whole 2 dollars? or what ever the amount of the product you are buying is...

that kind of annoys me, they still charge you 5 cents more.

7 Answers

  • 1 decade ago
    Favorite Answer

    Because, believe it or not, it's a psychological trick that has been shown to work well. In several different studies, customers have consistently been more likely to purchase something set at $1.99, than they are for something set at $2.00. This is because the brain registers the 1 or 2 before the 99 cents, therefore making the $1.99 much more appealing than the $2 one even though they know it's only a one-cent difference.

    Source(s): They taught us about this trick in my Intro to Psychology course
  • Anonymous
    1 decade ago

    So they can advertise it is under 2.00. But after you add tax it is really over 2.00.

    The nice thing about the VAT in europe is what the price is is they price you pay. It already has the tax computed in the sales price.

  • 1 decade ago

    Because humans think that $1.99 is a bargain compared to $2.00 ...

    Source(s): Econ classes
  • 1 decade ago

    Because even thought it is obvious it is pretty much the same as paying $2, People still think it is cheaper because they subconsciously see the 99 as somehow much cheaper

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  • virgil
    Lv 6
    1 decade ago

    This is a fantastic invention called marketing

    seeing that the price is not $2 makes you buy it cause its sooooo cheap

    Some ppl think marketing is a load of **** & so do I

  • 1 decade ago

    It looks cooler and professional

  • Anonymous
    1 decade ago

    because americans need pennies

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