Secrets Revealed: Pricing that makes customers buy

Conventional wisdom says that a product priced at GHS99.99 will seem less expensive than a product priced at GHS100. Researchers have also found that a precise price, like GHS99.37, is more believable and appears to offer a greater value than a round price like GHS100. Based on this, you might conclude that round prices – the ones that end in zeros – are always a bad idea. But recent research shows that round prices are perfect for certain types of purchases.

To see why this is true, pretend for a moment that you are at your local store. There’s an area near the front door with items priced at GHS1.00 and GHS3.00. It’s unlikely that any of these things was on your shopping list, yet you may find yourself unable to pass up the Star Wars socks. And then, near the checkout, there’s a rack of GHS5.00 DVDs. You see a favorite movie and happily toss it into the cart. Those round prices were pretty effective.