COLUMBUS (WCMH) — A study conducted by researchers at Ohio State University takes on the retail pricing trick of setting a price just below a round number — for instance, $39.99 instead of $40. Although the 99-cent price point may lead consumers into thinking the product is less expensive than it really is, researchers found that “just-below” pricing makes consumers less likely to upgrade to a more expensive version of the product or service. Six Buckeyes receive free cars for 2021 football season “Going from $19.99 to $25 may seem like it will cost more than going from $20 to $26, even though it is actually less,” said Junha Kim, doctoral student and lead author of the study. “Crossing that round number threshold makes a big difference for consumers.” The results were obtained from seven different experiments on a variety of products, including coffee, facemasks, streaming services, cars, and apartments,…
Continue Reading: Ohio State study shows .99 pricing trick may backfire on retailers
