Are the prices ending with 7 based on anything?
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)
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)
― George Carlin