๐ 0 Is Classier
The .99ยข hack says that consumers see a price ending with 9 as much cheaper than the number ending in 0 one penny higher, even if it is only a penny difference.
But is this the best way in all cases?
No.
This research disproves the myth that odd termination is effective for products of all types and prices, as the impact of prices ending in nine in brands with better market positioning, is greater.
Premium products benefit from having a round number price ending in 0. It can even impart a sense of scarcity.
For the category of kitchen towels, this means that a strong brand decreases the impact of finished prices when compared to other competitors. In five of the six presented brands, the preference share is greater for the prices ending in nine, compared to the closest price ending in zero, which confirms the benefit of presenting prices ending in nine for the case of mass market brands. On the other hand, in a premium perceived brand like Apple, that values exclusivity and design, an increase in price generated an increase in share, so the higher price ending in zero, presented better results, both in preference and in revenue.