Psychological pricing

[ZigE]

I did have a good google search on this, but there didn't seem to be definitive (reliable) answer, what would be best;

$49, $49.95 or $50

Alternatively does anyone have any specific research papers / pdf or something on this sorta stuff.

[Chris]

I use $49.95 because everyone else does it and I figure they would have done the research. Gas stations too are always .9 for prices.

I know some places use the cents field for a code indicating how many times it has been discounted (99, 88, 77, 66, so 66 being the price has dropped 4 times).

[Cloughie]

agreed - I would just 49.95

[ZigE]

This is not at all scientific, but I did a quick google of xx.99 vs xx.95,

Overall there is only a slight difference, but .99 just edging slightly ahead.

7,060,000 for "$19.95"
6,650,000 for "$19.99"

4,940,000 for "$29.95"
4,690,000 for "$29.99"

3,200,000 for "$39.95"
3,710,000 for "$39.99"

2,940,000 for "$49.95"
3,580,000 for "$49.99"

1,680,000 for "$59.95"
2,400,000 for "$59.99"

1,360,000 for "$69.95"
1,790,000 for "$69.99"

1,250,000 for "$79.95"
1,810,000 for "$79.99"

1,260,000 for "$89.95"
1,460,000 for "$89.99"

[Chris]

I remember reading a study once too that people have harder times adding in numbers like 7 and 3, so to trick them into thinking something is cheaper you want to do something like 117.53 instead of 119.95 or whatever.

[MaxS]

There's definitely psychology behind prices. I believe I have a book on it somewhere, but I haven't read it yet.

[ZigE]

There are psychological motivated decisions behind everything :p

Finding every way possible way exploit our decision making processes .. gota love it.

[ASP-Hosting.ca]

I use .99 for all my hosting plans.

[sukosaki]

I think it is at least somewhat important for people to see different prices. Sometimes they might think they are getting a deal because they only glanced and see a different price than $xx.95 or $xx.99.