Hello friends,
In this Module We are explaining you that "Why prices end with ₹999" or "Why prices of products set one rupee less(999) in India?".
Almost everyday at different places, you would have seen that prices of different things end at 999 or 99. We all have seen those prices and some of us even understand why would a shop owner price something like that. But, in this article, I will share with you the science and logic behind why do prices end in 99. So, keep Reading this article.
- Why price ends with 99 rupee?
- Why products prices are set 1 rupee less?
- Reason behind setting MRP ₹99,599,999.
- Psychological pricing strategies.
- What is the left digit effect for MRP?
- Big Bazaar,Flipkart,Amazon Prices.
1. PSYCHOLOGICAL PRICING- People associate Rs. 20999 with Rs. 20 K at the first glance. This tricks people into thinking that the product costs lesser than it actually does. Also when shopkeeper costs Rs.99 so people usually gives Rs.100 and they don't take back their Rs.1 back from shopkeeper and this Rs.1 is stored as Black for Shopkeeper.
2. NUMBER OF DIGITS - Rs. 999 is a smaller sized number than Rs. 1000. Again, this tricks people into thinking that the product costs lesser than it actually does. So, They buy that product thinking that its just Rs.900 not Rs.1000.
3. TRADITION- These days products are priced in such a manner because it has become the norm. Most of the people don't think about the psychology or the ideas behind such practices. Shopkeeper just prices Rs.999 for clothes (made by them only) as it has become a tradition and everyone are pricing just like this only.
4. NOVELTY FACTOR - Such pricing would have had a novelty factor associated in the beginning. New pricing attracts more people towards any product due to which their profit increases.
5. BLACK MONEY - A lot of times people don't ask for the Rs. 1 back and the business can anyway keep it. So, shopkeepers collects lots of money.
6. PROFIT - A lot of times in India, shopkeepers give out a Rs. 1 toffee instead of the Rs. 1 that they are supposed to return. This also allows them to make a little profit.
7. TAX - I'm not sure of this one, but, in some countries 0.99 instead of 1.00 may offer tax exemption/benefit.
8. GOOD SALE - It has perhaps been proved in some researches that products that have prices that end in 9 are sold more even when cheaper alternatives are available.
9. In these days of e-commerce, it sometimes allows the product to be sorted and visible in a lower category, thereby increasing the visibility of the product and in turn the probability of the sale.
You all need to Watch this Youtube video where i had explained that why these Strategies are used in market. This is my Youtube channel's video which i had made in the beginning of my youtube career. So, please support my channel as much as possible.
CONCLUSION
Today, we have shared an important information with you about psychological pricing that everyone should know. Finally, we all want to urge you to share this important information with all your friends on social media. So that all of them can get this awesome explanation about pricing. You can also comment below about any problem.
0 Comments: