Hello, on infoproducts I often see prices ending with 7, like 17, 27 and the famous 97.. But what is it based on? Is it just someone a long time ago saying that he tracked product price point and found the ideal price to be something ending with 7 and then from now on most vendors just put a price ending with 7, or is there something else more serious than that? Because in supermarkets and elsewhere, and even on some infoproducts vendors the pricing ending is still 9 or 9.95 and this price I've read before that it was also based on psychological pricing, that buyers would not call a $39.95 forty bucks, but thirty something.. But nowadays, does it still work when everyone is repeating it? What about more recent studies about the price ending? Nowadays don't consumer associate $39.95 with forty? In that case why lose the $0.05 if it's the same So I have two questions: - where does the 7 ending in infoproduct prices come from? - is it still accurate today in recent studies, if it has ever been? (this question also applies to 4.95 and 9.95 endings)
Not sure where this started, but yeah, it seems that the reasoning is that people would be less likely to round up to the nearest ten when they are talking about a 7 price. I mean, 7 is not 10, 97 is less than 100. But 99 might as well be. I dunno. But it does kinda seem that there's a hefty psychological reasoning behind that pricing choice.
Hmm good question, i've often thought about this too. I also think I has to do with psychology on an unconscious level.
Hey! It is purely a psychological pricing which aims at 1. gaining consumer satisfaction, who in turn, feels happy with the few point difference.. 2. It's a business technique..If they quote 100, consumer might think the price as higher for the particular product..whereas, if they quote the price as 99.50..it falls below 100 and that makes the huge difference with any consumer...
The 7's really work - studies have been done and there is data. Like wwstewart said 7 is not 10 and so forth... However, it just seems that people react well to 7's as much as anything else - as crazy as it may seem!